H.R. 2816: Shell Company Abuse Act

The bill titled the "Shell Company Abuse Act" aims to amend Title 18 of the United States Code, specifically focusing on prohibiting the establishment and use of corporations intended to conceal election contributions and donations from foreign nationals. Here’s a summary of the main provisions of the bill:

Short Title

The legislation may be referred to as the "Shell Company Abuse Act."

Prohibition of Shell Companies

The bill seeks to make it illegal for any owner, officer, attorney, or incorporation agent of a corporation or other similar entity to create or utilize that entity with the intent of disguising activities related to contributions or donations from foreign nationals as defined under existing federal election laws.

Details of the Offense

Under this legislation, it would be considered an offense to establish a corporation with the intent to hide election-related contributions made by foreign individuals or entities. This is based on specific definitions from the Federal Election Campaign Act.

Penalties for Violations

If a person is found to have violated this prohibition, they could face significant legal penalties, including:

• Up to 5 years of imprisonment
• Fines as determined by the law
• Or both imprisonment and fines

Overall Impact

This legislation is designed to increase transparency in political financing and to prevent foreign interference in U.S. elections by closing loopholes that allow foreign entities to influence elections through undisclosed contributions.

Relevant Companies

None found.