With WSJ report, Delaware again linked to alleged scandal

With another salacious headline involving the secret movement of money, the public has learned the name of another Delaware limited liability company – this time, it's Essential Consultants LLC.

The Wall Street Journal reported that an attorney for President Donald Trump used the Delaware company to transfer $130,000 to an adult film star just prior to the 2016 presidential election. The money was part of an agreement to ensure she would not divulge information about an alleged affair with the president, the report said. 

The case is the latest to link Delaware to alleged scandals, both nationally and internationally. Delaware entities, which do not publicly disclose ownership information, have appeared in connection with Russian arms dealer Viktor Bout, Mexican drug lord Joaquin "el Chapo" Guzman and former lobbyist Jack Abramoff.  

A federal grand jury indictment released in October stated that former Trump campaign chairman Paul Manafort and former Trump campaign official Rick Gates shielded from U.S. authorities millions of dollars in payments from the Ukraine, using nine Delaware LLCs.

In 2016, eight Delaware LLCs were named by federal prosecutors in connection with a scheme to embezzle hundreds of millions of dollars from the Malaysian government with the help of a Hollywood producer behind the film "The Wolf of Wall Street."

The Wall Street Journal published its report on Thursday. It stated Trump's personal attorney, Michael Cohen, opened a bank account in the name of Essential Consultants LLC, after he had registered the company in Delaware. He then allegedly sent the $130,000 through the new bank account to a lawyer representing the actress, who goes by the stage name Stormy Daniels, according to the report.

Cohen has denied allegations of an affair or a payoff.

“These rumors have circulated time and again since 2011,” he said. “President Trump once again vehemently denies any such occurrence, as has Ms. Daniels.”

Dover-based National Registered Agents registered Essential Consultants LLC, with the Delaware Secretary of State, according to its website. The registered agent does not disclose ownership information of its clients.

Reached by phone, an employee at National Registered Agents Inc., said she could not talk about the Wall Street Journal report, "without a court order."  

She also declined to talk about Delaware LLCs' frequent links to newsworthy scandals. 

STORY: Delaware seeks compromise in anti-money laundering fight

STORY: Documents: Delaware LLCs tied to Malaysian embezzlement

Asked last year about Delaware LLC's connections to scandals, Secretary of State Jeff Bullock said the First State is one of many to allow companies to register without revealing so-called beneficial owners. He also questioned any presumption that Delaware is linked to more salacious deals than other states. 

The overwhelming majority of Delaware's million or so companies are legitimate.    

Trump, coincidentally, is one person who has voluntarily stated that he owns numerous Delaware entities. 

While campaigning for president at a rally in Harrington, he said his corporate empire controls 378 companies registered in the First State. 

"That's good because that means taxes and everything," he said. "I mean I pay you a lot of money, folks."   

Registration fees in Delaware account for roughly a quarter of state government revenues. 

Contact Karl Baker at kbaker@delawareonline.com or (302) 324-2329. Follow him on Twitter @kbaker6.