Official Text
“Holding property in the name of another person without adequate consideration, where the property is held for the immediate or future benefit, direct or indirect, of the person who has provided the consideration.”
Legal Analysis
Elements to Prove:
- Property acquisition with consideration from another.
- Beneficial interest retained by provider of consideration.
- Intention to conceal or evade law.
Potential Defenses:
- Statutorily permitted nominee/trustee relationship.
- Full disclosure and compliance.
- Adequate consideration and independent ownership.
Practical Examples
What Constitutes the Offense:
Buying real estate in a proxy name to hide wealth, layering ownership to evade seizure.
What Doesn't Constitute:
Nominee holdings with statutory disclosures, trustee arrangements per law, guardians holding for minors duly disclosed.
Punishment
Imprisonment up to 7 years, and Fine