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Landfall evidently was secretly in charge of a videogame publishing empire through several shell companies, including WINGS Interactive and Sweet Baby Inc, which are focused on promoting activism in games.
There's really nothing illegal about this, just a lot of shadyness, but as the OP said activism when needlessly inserted into games can be extremely detrimental to the gaming industry. TABS obviously doesn't suffer from this, though.
Just as a side note, all of this is alleged. Landfall itself hasn't done anything explicitly wrong or criminal here that compromises the quality of their games. It might just be worth keeping an eye on how the situation will develop in the future.
So for those that doesn’t know about shell companies, they are companies on “paper only” and usually are used to avoid paying corporation taxes. Simply put, the taxes are based upon shell companies “location” not the parents companies location. It also allows companies to avoid sanctions when countries end up on the “bad” list with IMF.
They are also used by NGO’s and organizations that get government financing to avoid detection. Or In this case a group of activist who want to prevent detection by you.
So I will break it down, how this works, A person creating a shell company they are trying to hide, PERIOD.
Company A creates a shell company, and then creates another company B and then another C. They then can keep creating these “companies “which over lap sometimes in the same location. Or they can ping pong across the globe. The point is to directly prevent audits or investigations by people trying to figure out where the money is going or control is from. Also accounting funding is chaos and leads to people getting loss during audit.
So Again ,they do this mainly because either …
A) Trying to avoid home corporate taxes.
B) Trying to avoid sanctions.
C) Work with Grey area of governments.
D) NGO’s (usually using government money) .
E)* Trying to be activist trying to hide your tracks. (*new to me)
F) Etc
Again nothing of this is per say illegal, but it's in a grey area which many people, governments and others are interested in breaking the practice up.
With AI I am sure we will eventually we will see this eventually come to an end. As the process was created to confuse audits and investigators and anyone wanting to know where the money was going.
AGAIN NOTHING ILLEGAL PER-SAY with shell companies but it's not a good look.
If I may give advice to those involved in this process for this game dev. Realize people don’t like what you are doing, and retire ( I mean seriously) because there are now enough people with enough time to investigate everything.
The Era of Swish Bank accounts ending long ago, and Shell companies are also going down the same route, with the inclusion of AI. As well as some very smart patient people.