Nevada is under scrutiny after being linked to a Panamanian law firm that helped wealthy clients evade taxes through the creation of secretive corporations.
Inat least one case, the Panamanian firm at the center of the scandal appears to have used Nevada's lax business laws to create shell corporations for some of its clients.
Eryn Schornick, with the watchdog group Global Witness, says Nevada's laws make it a magnet for shadier elements.
"They can use specific jurisdictions that have weaker laws in certain states like Nevada to move their funds and put them in a place that won't be detected."
It's lucrative for the state, too, which brings in $110 million annually from incorporating fees. That's according to the Las Vegas Review-Journal.
Nevada Secretary of State Barbara Cegavaske told our partner KNPR in Las Vegas they have been trying to crack down on illegal operators.
"We have every session just about put in new legislation to help. ...And they're all specific: 'A person shall not establish a corporation for any illegal purpose.'"
Cegavske says they will investigate any business entities in Nevada that may have connections to the Panamanian firm.