Brady’s ‘Secret Money’ Is Part of NYC Tradition
Tom Brady’s luxury Manhattan apartment might be the most visible example of a long-held, secret real estate tradition.
What would you think if Tom Brady used “secret money’’ to buy a luxury New York City apartment?
According to The New York Times Brady bought such a residence in the Time Warner Center in 2006 using a trust called Courage Under Fire. He never lived it in, but rather rented it out during the time he owned it and eventually sold it in 2011.
So, is an apartment-gate on the way? It’s unlikely.
The New York Times reported that many elite New York City apartments are in fact owned by “shell companies.’’ Brady’s residence falls in this category.
“Behind the dark glass towers of the Time Warner Center looming over Central Park, a majority of owners have taken steps to keep their identities hidden, registering condos in trusts, limited liability companies or other entities that shield their names. By piercing the secrecy of more than 200 shell companies, The New York Times documented a decade of ownership in this iconic Manhattan way station for global money transforming the city’s real estate market.’’
Many using this purchasing method are celebrity-esque figures, like the New England Patriots quarterback, while others are wealthy foreigners that have come under U.S. government scrutiny.
According to the Times, money from a shell company is often used to purchase an apartment, making it almost impossible to trace the sale back to the owner.
Shell companies provide “a corporate entity [disguised ownership] in order to operate without scrutiny from law enforcement or the public.’’
The Times’ report indicates almost half of the most expensive residential properties in the U.S. are being bought through shell companies.
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