HR2816-119

What This Bill Does

The Shell Company Abuse Act adds section 612 to chapter 29 of title 18. It targets the use of corporations, companies, or other entities as concealment vehicles for foreign-national activity prohibited by Federal Election Campaign Act section 319. An owner, officer, attorney, or incorporation agent who establishes or uses an entity with intent to hide a prohibited foreign-national contribution or donation activity commits a federal offense. The penalty is imprisonment for up to five years, a fine under title 18, or both.

Who Benefits and How

Federal election enforcement agencies benefit because prosecutors receive a specific shell-company concealment offense tied to foreign-national campaign-finance bans. Campaigns following foreign-money rules benefit from stronger deterrence against hidden foreign-national support through entities. Voters benefit if corporate shells become less useful for concealing foreign influence in elections. Campaign finance watchdogs benefit from a clearer statutory theory for shell-company abuse cases.

Who Bears the Burden and How

Corporate officers using shell entities face criminal liability when they intend to conceal prohibited foreign-national election activity. Incorporation agents must avoid forming or using entities to hide foreign-national campaign contributions or donations. Attorneys assisting entity formation face exposure if they intentionally help conceal prohibited foreign-national activity. Foreign nationals seeking hidden election spending lose a concealment pathway through corporations or companies.

Key Provisions

• Creates a new title 18 offense for using an entity to conceal prohibited foreign-national election contributions or donations.
• Applies the offense to owners, officers, attorneys, and incorporation agents.
• Requires intent to conceal activity prohibited by FECA section 319.
• Provides a penalty of up to five years of imprisonment, a title 18 fine, or both.