Delaware dissolves corporate vehicles used by former Trump lawyer Michael Cohen

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Cohen.. (Creative Commons photo)

The Delaware Department of Justice announced a Court of Chancery ruling dissolving two limited liability companies owned by Michael Cohen.

Cohen is the former lawyer for President Donald Trump. He was released after serving time in federal prison for pleading guilty toMaking False Statements to a Bank, Excessive Campaign Contribution, Causing an Unlawful Corporate Contribution, and Evasion of Personal Income Tax.

Delaware has taken a harder line on LLC’s linked to questionable activities after operating under a long-running hands-off policy. The state insisted that federal legislation was needed to avoid suspicious corporate entities to simply move their domiciles to states like Nevada.

Delaware legislation tightened LLC requirements after a string of embarrassing disclosures of LLCs being used by drug kingpins, dictators, and others tied to money laundering and other criminal activities.

“Dissolving Mr. Cohen’s LLCs ensures that they can never again be used to evade or violate the law,” said Attorney Kathy General Jennings. “Delaware’s role in the corporate community is a privilege that comes with responsibility. We expectevery Delaware business to follow the law, full stop, and my office will not hesitate to use our full authority to stop criminal abuse of a Delaware LLC or corporation.”

Cohen used Essential Consultants LLC, to facilitate a payment of $130,000 to adult film actress Stormy Daniels claiming to have been involved with then-presidential candidate Donald Trump, to pay for technology services purchased for the Trump campaign, and make other payments.

Cohen also admitted that he planned to use a second LLC, Resolution Consultants LLC, to facilitate a $125,000 payment to a second woman claiming involvement with Trump but later canceled the agreement. Attorney-General Kathy Jennings petitioned in September 2019 to cancel both LLCs’ formation documents.

Cohen cooperated on the proposed stipulation of judgment in this matter, the AG’s office reported.

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