Unmasking the secret landlords buying up America
Anonymous shell companies have been buying up single-family homes in American cities.
Through the Bank Secrecy Act, a 1970 anti-money-laundering law, FinCEN – the Treasury Department’s Financial Crimes Enforcement Network – is able to keep track of who owns these properties. However, FinCEN also keeps this information from the public, making it hard to trace who actually owns property in American cities.
In July, we filed a Freedom of Information Act request seeking information on the “beneficial owners” of LLCs – information that’s held by FinCEN but not collected under the Bank Secrecy Act. At first, the government refused to acknowledge that it has this information, saying it could “neither confirm nor deny the existence of the materials,” citing the Bank Secrecy Act. We appealed the decision, and lost.
Now, we’re going to court. In a complaint filed Monday in the U.S. District Court for the Northern District of California by our general counsel, D. Victoria Baranetsky, we argue that the government has “no lawful basis for declining to release the records” under FOIA.
“The public and the press have a clear and abiding interest in knowing who owns property in their communities,” the complaint states, “and keeping public officials accountable in their handling of this matter.”
Read the story here.
A correction
In last week’s newsletter, we shared the news that 13 members of Congress, including Sen. Bernie Sanders (I-Vt.) and Rep. Ilhan Omar (D-Minn.), had pressed the Department of Labor to investigate Amazon's labor practices, partly as a result of our story on working conditions at the company. While Sanders and others have responded to our story with calls for more scrutiny of Amazon, the legislators referenced had issued their call for an investigation before our story was published.
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