A new scam is now being marketed that is known as the “Asset Protection Consultant”. To be such a consultant, an individual pays several thousand dollars to receive for what is at best rudimentary information that is worth less then twenty dollars. All this information relates is what the benefits are of Nevada corporations.

The new “consultant” then launches himself as a sort of “Asset Protection Maven”. Keep in mind that he lacks a license to practice law which could, at a later date, subject both the consultant and his client to criminal penalties for the Unlicensed Practice of Law (UPL), as well discredit the attorney-client privilege for whatever his client tells him.

The consultant charges his clients thousands of dollars for him to set up Nevada corporations (which normally, with a proper asset protection advisor, could be set up for a few hundred dollars.) The so-called consultant informs his clients that these are “foolproof” structures, and that creditors will be thwarted by the “Bearer Shares”, even though ownership can be imputed even when bearer shares can’t be found. And, in all likelihood, Nevada law wouldn’t apply when the person and their assets are in another state.

Eventually, these consultants will wind up having to hire their own lawyer when three events occur:

a. The tax bill for the entity comes due, and he didn’t know how to advise his client about how to correctly structure and fund these entities; or

b. His client gets sued by a creditor, who adds him as a co-defendant on a civil conspiracy claim, or, worse,

c. His client gets sued by the U.S. government, who then files money laundering charges against the consultant.

So, in the long run, these “Asset Protection Consultants” eventually get found out, caught and wind up having to pay fines or, possibly, go to jail. Adding insult to injury, these consultants, when attempting to find the person who sold them this shabby bill of goods, will be long gone. Our advice: If it sounds too good to be true, it probably i

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