Wyoming’s Secretary of State, Chuck Gray, dissolved three North Korean-owned companies in May of last year. According to investigations, these companies were allegedly attempting to raise funds for the development of weapons of mass destruction.
Uncovering the Scheme
The revelation came during a House Corporations, Elections, and Political Subdivisions Committee hearing on House Bill 69. The bill aims to empower the Wyoming Secretary of State’s Office to immediately dissolve companies linked to foreign adversaries.
Policy Director Joe Rubino explained that the dissolution of the companies—Culture Box LLC, Next Nets LLC, and Blackish Tech LLC—was possible because they had filed fraudulent documents. This allowed the state to act swiftly in collaboration with the FBI.
“After close consultation with the FBI and our own investigation, we found they had filed fraudulent documents with our office,” Rubino said. “This incident highlighted a significant loophole in our statute.”
Had the companies not submitted fraudulent applications, the Secretary of State’s Office might not have been able to act so quickly. House Bill 69 seeks to close this loophole by enabling faster action against such entities.
Addressing Loopholes and Secrecy
North Korea isn’t the only foreign adversary suspected of exploiting Wyoming’s business laws. The state has become a popular destination for incorporations, surpassing Delaware partly due to a setup known as the “Cowboy Cocktail.” This structure allows an LLC to control a trust, creating a veil of secrecy that is hard to penetrate.
This setup has reportedly been used by individuals such as Russian oligarch Igor Makarov and Argentina’s Braggio family to hide assets and questionable dealings. Secretary of State Chuck Gray has expressed his commitment to addressing these issues.
“Last year, at my request, our business division formalized a process to dissolve entities filing false or fraudulent documents,” Gray said. “We’ve taken action against numerous bad actors.”
Expanding Efforts Against Fraud
Rubino testified that the Secretary of State’s Office has identified and dissolved about 60 businesses that provided false information. House Bill 69 is part of a broader legislative effort to combat fraud and ensure Wyoming’s business integrity.
Gray highlighted the importance of HB 69 during Friday’s testimony. “Of all the bills developed during the 2024 interim, this is the one we’re most excited about,” he said. “We’re addressing fraud head-on instead of ignoring the problem.”
The bill aligns with the federal government’s list of foreign adversaries, which currently includes China, Cuba, Iran, North Korea, Russia, and Venezuela’s Maduro regime.
Legislative Support
HB 69 faced no opposition during its committee hearing. Representative Mike Yin (D-Jackson) moved to advance the bill, seconded by Representative Ann Lucas (R-Cheyenne). The committee’s members unanimously supported the motion. Representative Nina Webber (R-Cody) was absent but excused.
The committee included Chairman Christopher Knapp (R-Gillette), Representatives Gary Brown (R-Cheyenne), Paul Hoeft (R-Powell), Steve Johnson (R-Cheyenne), Tony Locke (R-Casper), and Joe Webb (R-Lyman).
Conclusion
House Bill 69 marks a significant step in Wyoming’s efforts to combat fraudulent businesses and protect its reputation as a business-friendly state. By addressing loopholes and aligning with federal guidelines, the state aims to ensure that its laws cannot be exploited by foreign adversaries or other bad actors.
Disclaimer – Our editorial team has thoroughly fact-checked this article to ensure its accuracy and eliminate any potential misinformation. We are dedicated to upholding the highest standards of integrity in our content.
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State Officials Target Fraudulent Businesses in Wyoming’s LLC System
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State Officials Target Fraudulent Businesses in Wyoming’s LLC System