What's a blind corporation?

What's a blind corporation? - Person in White Long Sleeve Shirt Holding White Book

In Swordfish the DEA is investigating a terrorist (Travolta) who's known to be a big deal. Here they're looking into a house that was recently leased to a blind corporation, as this guy on the left says to the guy with the binoculars (Don Cheadle). What's a blind corporation supposed to be? Doesn't it have a name? I mean they're DEA, how can they not know?

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I know that this movie is style over substance mostly, but still interested.



Best Answer

Probably a shell corporation

Iandotkelly correctly explained the "blind" of a "blind trust", but the context of this scene in question suggests more that they are talking about a shell corporation.

A shell corporation is a company or corporation that exists only on paper and has no office and no employees, but may have a bank account or may hold passive investments or be the registered owner of assets, such as intellectual property, or ships.

Shell companies have been used to commit fraud, by creating an empty shell company with a name similar to existing real companies, then running up the price of the empty shell and suddenly selling it (pump and dump).

While not always the case in real life, in movies shell corporations generally imply a shady business which is used specifically so that the real person can remain anonymous.

In case of terrorism, shell corporations provide a "legal" way for the terrorist to operate publically using the shell corporation as an alter ego. If John Travolta's character had leased the house to his name, that would've sent red flags up everywhere (I am assuming he is a known or suspected terrorist, given that they're observing him in the screenshot you posted). But "Globodex Incorporated" leasing a house doesn't raise red flags.


But why "blind"?

However, it is unclear why they are calling it "blind" corporation. I have never heard of this being a synonym, nor can I find any mention of a "blind corporation" online.

To a layman, there is some overlap between a blind trust and a shell corporation: you don't know who runs it.

But from an administrative perspective, these are two very different things that have nothing to do with each other. A blind trust is a pre-existing company which is temporarily being run by a person (not the founder or permanent owner) whose identity is not known by the real owner of the corporation, a shell corporation is a company created for the unknown founder for the specific purpose of being a shell company.

Since a blind trust makes no sense in this context; I suspect this is either bad script writing or a portmanteau which isn't very well known (since there's no Google result as far as I can see).


Is the name of the company unknown?

Doesn't it have a name? I mean they're DEA, how can they not know?

The point isn't to imply that the DEA doesn't know the name, it's that they didn't particularly point out the name and instead described it in a way that is relevant. If they had said "Globodex Incorporated", the viewer wouldn't have known if that is a legit in-universe company or not.

This is a matter of out-of-universe exposition to the viewer, but you can reasonably argue that the name might not be mentioned in-universe either, if the listener wouldn't be interested in the particular name. Especially if it's a shell corporation, the name holds little value anyway as it's just an alias.




Pictures about "What's a blind corporation?"

What's a blind corporation? - Man in White Long Sleeve Shirt Sitting on Black Chair
What's a blind corporation? - A Person in Blue Long Sleeve Shirt Reading a Braille Book
What's a blind corporation? - A Mature Woman Sitting on Sofa Reading a Braille Book



What is meant by blind trust?

A blind trust is a trust established by the owner (or trustor) giving another party (the trustee) full control of the trust. The trustee has control over the assets and investments while managing the assets and any income generated in the trust.

What is a blind trust UK?

The purpose of such a trust is to allow a politician not to declare an interest in certain assets because they do not know at any time what assets are owned by the trust. The settlor may retain an interest or the trust may even be a bare trust in which the settlor remains absolutely entitled to the assets.

How do I set up a blind trust in Australia?

How Can You Set Up A Blind Trust?
  • Gather required documentation, for instance, certificates or other formal records that prove the trustors' ownership of relevant assets.
  • Appoint a reliable person to become trustee of the blind trust. ...
  • Create the blind trust agreement. ...
  • Finalise and sign the trust.


  • How do I set up a blind trust in Canada?

    How to Set Up a Blind Trust
  • Cover letter from the grantor addressing how the trustee was selected.
  • Copy of the proposed trust instrument.
  • Schedule A \u2014 list of assets contained in the Qualified Blind Trust (QBT) at the time of the Committee's approval.
  • Schedule B \u2014 trustee fee schedule.
  • Certificate of Independence of Trustee.




  • what. (Bo Burnham FULL SHOW HD)




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