Margrave Celmins, P.C. Scottsdale, AZ
May 2016 Bimonthly Newsletter
Court House Butte, Sedona. Together with the Bell Rock pathway, you can hike a trail loop of 4.3 miles and enjoy red rock country and wilderness. A short offshoot is popular with bicycle enthusiasts.

The firm recently celebrated its 29th anniversary. We thank you for being our clients and trusting us with your matters.

Please check out Michael Margrave’s articles this month on the infamous Panama Papers and the fallout from forming corporations and limited liability companies in certain states and his report on LawPact. Michael has a follow-up blog later this month on a potential problem with single-member LLCs. Enjoy the photo of Chris and Lat attending the Phoenix Suns Customer Appreciation Tournament recently. We also have an article written by Mallory Rasmussen, one of our paralegal student interns, from Phoenix College. We usually have an intern each semester to foster our relationship with the school and to give back to the community in a way that helps the students.

Meanwhile, enjoy our latest newsletter, and our lovely Spring weather.

Patty Copeland, Editor
Attorney Spotlight
The Phoenix Suns gorilla, Lat Celmins and Chris Lonn taken during the Phoenix Suns Customer Appreciation Tournament at the Troon North Golf Club in Scottsdale recently.
RKD w/Dana Gould
Rick DePonte (right) with comedian/actor/producer Dana Gould at the Pressroom in Phoenix on April 10th. Rick grew up with Dana in Hopedale, Massachusetts. Dana has written and produced The Simpsons (won two Primetime Emmy Awards), has made guest appearances on Seinfeld, King of Queens and Family Guy and has a new show coming out later this year on the IFC Network called "Stan Against Evil" which he is writing and executive producing.
Hello, newsletter readers! My name is Mallory Rasmussen, and I am currently interning at Margrave Celmins, P.C., which participates in an intern program every semester from the Phoenix College paralegal school. I began my internship in late January of this year, and from the very first day it has been tremendously rewarding. I was fortunate enough be placed at a firm that practices in diverse areas of law, which granted me exposure to an array of cases and also an opportunity to see different attorneys exact their talents and knowledge in a range of styles. I was able to assist Rick DePonte with some of his personal injury cases. Rick’s cases gave me a chance to practice drafting complaints and disclosure statements, as well as a general understanding of personal injury law and court procedure. Aside from Rick, I spent the majority of my time working with Lat Celmins. Lat put a great deal of faith in my abilities and gave me some pretty daunting undertakings. That being said, I cannot overstate how much I learned from an analytical perspective while working with Lat. I was also able to see a case from the very beginning stages all the way to constructing a complaint and even getting to take a stab at crafting an opening statement for the case, all the while learning how to execute more routine duties like Bates numbering and compiling trial notebooks. The attorneys at Margrave Celmins delivered a balance of routine duties and thought-provoking work so that I was able to experience the full spectrum paralegal work.

Though the work I was lucky enough to do was gratifying and beneficial, the people I met might be even more impressive. The entire staff, scratch that, family at Margrave Celmins is both talented and supportive; they care about each other and, most importantly, they care about the clients.

My class meets every few weeks to discuss our internships: what aspects we are enjoying, what skills we are practicing, what challenges we are experiencing and so forth. While I fully believe that all of my classmates are gaining valuable experience at their internships, I’m grateful I’m completing my internship at this particular firm. Margrave Celmins has provided me with guidance and mentorship, while also giving me some freedom to tackle tasks and projects on my own as I will have to do as a paralegal in the future.
By this time, I’m sure most of you are familiar with the Panama Papers scandal, which has made world-wide headlines. The confidential files of a law firm in Panama were hacked, resulting in the disclosure of known and unknown names from around the world. There is no doubt the anticipated privacy of forming entities or trusts in jurisdictions with little information about the parties made available was clearly abused by tax evaders, money launderers and the like. And it is interesting to note how little time it took for the press and various interest groups rush to conclusions that if there is some abuse, there must therefore be abuse by all, which is a conclusion clearly absurd and unsupportable. That is like saying that since some politicians are corrupt, then it follows that all politicians are corrupt. Well, maybe that one is a bad example. But you get the picture.

And sure enough, articles started popping up here in the U.S. about the evils of Delaware, Wyoming, Nevada and South Dakota and that these states are complicit in the evils of all tax abuse because they do not mandate the same degree of disclosure as other states. This seems a gross over-reaction to me. Here is an example. We had a client developing a new service. They did not want competitors knowing that they were working on this new service for obvious economic reasons. It was decided to form the entity in a state requiring less disclosure rather than more. And they were successfully able to bring the service to market without worrying about corporate snoopers combing the records of the Arizona Corporation Commission. The client wanted corporate privacy for a legitimate reason. What’s wrong with that?

Another advantage of using states like Delaware and Nevada is their quality and efficiency of service. In time sensitive transactions, they offer something that many states do not—certainty. Let me provide an example. If a company needs to effect a merger on a certain date and time without fail, then a state like Delaware offers that service. We recently had a client that needed to have a merger accomplished by a certain time and date. The merger was effected through Delaware because the Secretary of State’s office in Delaware offers a review of the documents intended to be filed for a modest charge so that any issues on documents delivered are flushed out before the actual delivery of the signed documents for filing. And Delaware offers same day, half day or one hour service at an additional charge for delivering documents and having them filed within that time frame. What this results in is the certainty that the transaction will be completed as planned.

We had another very recent situation where we were doing a corporate spinoff in Arizona. We delivered the paperwork to the Arizona Corporation Commission over two weeks prior to the intended effective date of the spinoff on an “expedited” basis. But it took over two weeks and basically at the last minute to learn the papers had been accepted for filing. What did that cause? Lack of certainty and unnecessary stress and anxiety.

So by castigating these particular states, the press and these special interest groups in the U.S. paint a very inaccurate and distorted picture of the corporate services provided by states such as Delaware, Wyoming, Nevada and South Dakota.
I recently attended the Lawpact meeting in Toronto, Canada at the end of April. These periodic conferences offer a valuable opportunity to interact with attorneys from our member Lawpact firms from around the world. At this meeting were 29 member firms from the US, Canada, Mexico, Europe and Central and South America.

One of the advantages of our being a member of Lawpact is that it is also a resource for our clients doing business abroad. The laws in foreign countries are often very different than the laws to which most of us are accustomed to in the U.S. Doing business abroad without legal guidance as to the laws of that country is often done at the U.S. company’s peril.

Since we are right on the border with Mexico and there is a good amount of business between us, I wanted to provide some information on our member firm in Mexico. The firm is Gil Elorduy Yaritu & Associates. Their main office is in Mexico City with a branch office in Monterrey. The senior partners are Sergio Yerritu and Francisco Gil-Elorduy, whom I have known for a number of years. Their services cover a broad area of tax, corporate, transactional and employment law services for foreign companies doing business in Mexico. Let me know if you have any legal needs there.

And if you have legal requirements in other countries, don’t hesitate to get in touch with me to see if one of our Lawpact member firms can assist you.
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Contact The Firm
8171 E Indian Bend Rd Suite 101, Scottsdale, AZ 85250
Ph: (480) 994-2000
Fax: (480) 994-2008
Monday – Friday 8:30 a.m. – 5:00 p.m.
Margrave Celmins, P.C.
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About Our Law Firm
Margrave Celmins is a member of LawPact®, which is an association of independent, business-oriented law firms in the U.S. and overseas. Currently, there are 51 member firms. This is a terrific resource for clients who have legal matters in other states and abroad. There are 25 states and 20 countries represented by member firms throughout Canada, Mexico, Central and South America, as well as Europe and India.
This newsletter is for informational purposes only. Legal advice is provided only through a formal, written attorney/client relationship agreement.