Shell company

http://www.nytimes.com/2015/02/08/nyregion/stream-of-foreign-wealth-flows-to-time-warner-condos.html?smprod=nytcore-iphone&smid=nytcore-iphone-share

http://www.nytimes.com/2015/02/08/nyregion/the-hidden-money-buying-up-new-york-real-estate.html?module=RelatedCoverage

Read both of these articles in order. Shell companies are frequently used to shield the identities of buyers in the competition to secure condos at the Time Warner Center and other high-end buildings in New York City, London and elsewhere.

Many times, the purchasers of these properties use shell companies. The shell companies, most benignly, provide privacy for ultra affluent purchasers. Most malignantly, they also provide potential avenues to vast money laundering and corruption schemes.

After reading the articles linked above, answer the following questions:

1. What is a shell company?

2. Are there legitimate uses for shell companies?

3. What are the risks of using shell companies for business transactions?

4. From conducting extra research (post your findings here), is US law different from other western nations on the use of shell companies?

5. Would you change anything about how US law permits or restricts the use of shell companies?