August 23, 2016
An ongoing Federal investigation into the high-end U.S. housing market has yielded some rather shocking results. According to a report recently released by the Treasury Department, more than 25% of buyers using limited liability companies (LLCs) who purchased high-end homes in Manhattan (over $3 million) and Miami (over $1 million) were linked to a “suspicious activity report,” an “indication of possible criminal activity.” That’s no small potatoes.
The U.S. government has long suspected that anonymous shell companies are being used to purchase multi-million dollar homes, an as-of-yet undetermined portion of which were merely fronts for money laundering or criminal activity. Now we have actual proof.
This investigation is being expanded to include additional affluent localities throughout the U.S., including San Francisco, counties north of Miami and Los Angeles County among others. The outcome of this investigation could have major widespread ramifications for investors. Once the government finds out just how endemic this problem is, the resulting crackdown could be sharp.