A Delaware LLC is again figuring into payment controversies swirling around President Donald Trump.
The Wall Street Journal reported an LLC was set up to be used to funnel possible payments from the owner of the National Inquirer
The Journal reported Michael Cohen, at the time an attorney for Trump Organization, created Resolution Consultants LLC, in 2016 to purchase the rights to Karen McDougal’s story of an alleged affair from American Media Inc.
McDougal is a former Playboy Centerfold. Trump has denied the affair took place.
American later decided not to sell the rights. The media company has been accused of “catch and kill” in buying unfavorable stories related to Trump.
The LLC made the news after an audio tape between Trump and Cohen was released.
Cohen also used an LLC in an apparent case involving a payment to adult film star Stormy Daniels. The payment is under investigation over possible campaign finance violations.
Delaware LLC’s continue to make the news, due to the lack of disclosure needed in setting up the entity. There have been calls in Delaware to tighten up disclosure rules.
The State of Delaware has argued that the issue has to be dealt with on the federal level. Otherwise, shell LLCs organizers would simply go to other states.
