Kelly Carr on the Cheyenne 'House of Secrets' and Corporate Secrecy in America

Kelly Carr's special report for Reuters broke the story of 2710 Thomes Avenue, the small house in Cheyenne, Wyoming that is "home" to more than 2,000 companies. Benzinga Radio had the chance to chat with Carr on the details of her investigation and the United States' surprising emergence as a haven for corporate secrecy. Wyoming Corporate Services, the company that owns and operates out of 2710 Thomes, sells aged variations on shell corporations called "shelf" corporations. Wyoming Corporate Services founds companies and lets them sit for years, filing taxes and other paperwork all the while. The purpose is to provide the shelf companies with increased credibility due to their age. As Carr outlines in her report, there are legitimate as well as highly illegal uses for shelf companies - and no shortage of examples of their application for both purposes. International criminals have used Cheyenne and other locations in the US to hide their fraudulent activities, and the scale of the problem is still unclear. Carr:

"We don't know the size and scope of the incorporators in the US, or the number of shelf companies sold, for sale, or that have been bought already and are being used."

Legislation that would require increased corporate disclosure of ownership and beneficiaries has failed repeatedly in Congress due to claims that it puts an undo burden on legitimate businesses. Meanwhile, the US is getting increased attention as a tax haven:

"What we found surprising was that businessmen were choosing to incorporate in the US and use some of these nominee officers and other privacy options like virtual offices instead of incorporating in a [typical] tax haven.

Listen to the full discussion for more details on Carr's investigation.