A client of ours, Matt, had a very successful website that was politically unpopular and attracted the attention of several high-level politicians. The politicians pressured for an FTC (Federal Trade Commission) investigation.
Like many government agencies, FTC firmly believes that if it is investigating someone, they must be guilty. Government agencies are allowed to make circular logic arguments. The FTC has a nasty habit of freezing bank accounts, appointing receivers, and putting people out of business. We have seen clients, in years past, go through an FTC investigation and come out clean, but bankrupt. When bank accounts are frozen it becomes difficult to pay employees, vendors and lawyers.
Not only was Matt’s livelihood at risk but all his assets were about to become inaccessible to him and his family even before the investigation began. Going up against big political figures is intimidating enough, but when a notoriously inflexible government agency becomes involved, the odds seem dire.
Matt wanted to have a sufficient nest egg, unreachable by the FTC, that he could use for legal representation and to support his family. We helped Matt move over $100 million overseas into multiple offshore structures spanning six jurisdictions around the world. We further inverted the corporate structure to create an offshore parent corporation with a U.S. subsidiary, and transferred all intellectual property, including the domain, into a standalone offshore structure. Matt was investigated by the FTC, and was able to retain excellent counsel. No charges were filed and Matt enjoys peace of mind, knowing that if anything happens in the future, he is well protected.