Hollywood director Carl Erik Rinsch was arrested for wire fraud and money laundering after allegedly defrauding Netflix of $11 million intended for his sci-fi show, “White Horse.” Instead of completing the show, Rinsch diverted the funds to cryptocurrency investments and extravagant purchases. These purchases included luxury vehicles, high-end furniture, and legal fees. The indictment alleges that Rinsch lost approximately half of the misappropriated funds in failed investments before profiting from cryptocurrency, subsequently using the remaining proceeds for personal expenses.
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Republican opposition to the Corporate Transparency Act (CTA), citing burdensome requirements for small businesses, resulted in a federal court halting its beneficial ownership rule enforcement. The CTA, enacted by the Biden administration to combat tax evasion and corporate favoritism, directly contradicts Trump administration policies. Trump’s broader efforts to weaken financial regulations, including the recent executive order freezing enforcement of the Foreign Corrupt Practices Act, suggest a prioritization of deregulation benefiting corporate interests. This ultimately reduces scrutiny of businesses with questionable practices.
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The Treasury Department announced it will not enforce the Biden administration’s beneficial ownership information database rule for small businesses, effectively suspending penalties for non-compliance. This decision, praised by President Trump, halts the requirement for millions of small businesses to register owner information by January 1, 2024, despite ongoing litigation challenging the rule’s legality. The rule, intended to combat money laundering and shell company formations, has faced criticism for its potential privacy concerns and regulatory burden. This action is framed as part of the Trump administration’s effort to reduce regulations impacting small businesses.
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The Treasury Department announced it will not enforce penalties under the Corporate Transparency Act against U.S. citizens or domestic companies, citing the burden on low-risk entities. This decision follows opposition from the Trump administration and ongoing legal challenges. The department plans to issue a rule narrowing the act’s scope to focus on foreign reporting companies. Proponents argue the act combats money laundering in the U.S., while opponents emphasize the regulatory burden.
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John Q. Hosedrinker