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Stream of Foreign Wealth Flows to Elite New York Real Estate
Key Excerpts from Article on Website of New York Times
Posted: May 11th, 2015
http://www.nytimes.com/2015/02/08/nyregion/stream-of-foreign...
Behind the dark glass towers of the Time Warner Center ... a majority of owners have taken steps to keep their identities hidden, registering condos in trusts, limited liability companies or other entities that shield their names. By piercing the secrecy of more than 200 shell companies, The New York Times documented a decade of ownership in this iconic Manhattan way station for global money, [and] found a growing proportion of wealthy foreigners, at least 16 of whom have been the subject of government inquiries around the world. The cases range from housing and environmental violations to financial fraud. Four owners have been arrested, and another four have been the subject of fines or penalties for illegal activities. They have been able to make these multimillion-dollar [real estate] purchases with few questions asked because of United States laws that foster the movement of largely untraceable money through shell companies. Vast sums are flowing unchecked around the world as never before whether motivated by corruption, tax avoidance or investment strategy, and enabled by an ever-more-borderless economy and a proliferation of ways to move and hide assets. The high-end real estate market has become less and less transparent and more alluring for those abroad with assets they wish to keep anonymous even as the United States pushes other nations to help stanch the flow of American money leaving the country to avoid taxes.
Note: The New York Times investigation at the above link provides a comprehensive look at the international crime and political corruption at the heart of Manhattan's spiking real estate prices.
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