Business Succession Planning And Scam, Bogus Or Defective Trust
SCAM, BOGUS & DEFECTIVE TRUSTS
SCAM, BOGUS & DEFECTIVE TRUSTSFORBES [11-24-03] gets it right on what can and what cannot be accomplished with offshore trusts, stating: "Anyone who tries to tell you that moving your assets to an offshore trust can eliminate a big chunk of your tax bill is either deluded or a scamster. . . . [However], a U.S. citizen setting up a [foreign] trust today should gain some protection from future creditors". As we have warned, there are NO tax savings through the use of offshore trusts.
The government has arrested individuals [i.e., attorneys, CPA's, tax preparers and financial planners] who for years marketed phony domestic and foreign trusts [i.e., "common law business trusts" and "CBOs"] through Aegis Co. Some 650 wealthy clients paid fees ranging "from $10,000 to $75,000" for such "sham" structures. [Chicago Tribune, 4-9-04; Washington Post, 4-9-04]
The U.S. Government has obtain permanent injunctions and/or criminal convictions against scam, bogus or defective trust promoters [which involved such countries as Belize, Costa Rica, Nevis, Panama], such as: U.S. v. Novotny, 92 AFTR 2d 2003-5648 [10th Cir. 2003]; U.S. v. Mahoney, 92 AFTR 2d 2003-5885 [DC MA 2003]; David C. Stephenson, d/b/a American Business Estate & Tax Planning Service [U.S. v. Stephenson, 93 AFTR 2d 2004-1407]; Austin G. Cooper, d/b/a/ Taking Back America [U.S. v. Cooper, 93 AFTR 2d 2004-1677]; [U.S. v. Joy Foundation, 94 AFTR 2d 2004-5053; and U.S. v. Mattatall, 93 AFTR 2d 2004-1967]; Marc Harris of the Marc Harris Company, formerly located in Panama and then Nicaragua [InvestmentNews, 6-21-04, p. 25]; Daniel Andersen, Margo Jordan, Jeffrey, Shoshanna Szuch, Laura J. Struckman and David Alan Struckman of Global Prosperity [IRS Press Releases, dated 7-15-04 and 1-24-06]; James Binge and Terrence Bentivegna [IRS Press Release, dated 9-29-04]; Anderson Ark and Keith E. Anderson, Wayne Anderson, Richard Marks and Karolyn Grosnickle [Department of Justice Press Release, dated 4-22-05]; Lynne Meredith, of We the People [2005 TNT 109-7, dated 6-8-05]; Robert L. Mosher [IRS Press Release, 2-16-06]; Frank Eugene Ellena of Celtic International Paralegal and Financial Services [IRS Press Release, 3-20-06]; disbarred Seattle lawyer, Bruce Hawkins [IRS Press Release, 3-20-06]; Pierre Gauthier and Jean Jay Gauthier [IRS Press Release, 4-4-06]; Louis Wayne Ratfield of LWR Financial Services Trust [IRS Press Release, 4-18-06]; Paul D. Harris and Lester R. Retherford of Tower Executive Resources [IRS Press Release, 8-11-06]; Michael Joseph Shanahan and David Carroll Stephenson [IRS Press Release, 10-5-06]; Susan E. O'Brien, Robert Richard Evans and William Dean Cook of The O'Brien Group [IRS Press Release, 10-10-06]. And, a U.S. District Court recently held William S. Reed and Richard C. Neiswonger, the principals of Asset Protection Group in Nevada, in contempt for violation of a Permanent Injunction. [Federal Trade Commission v. Richard C. Neiswonger, et al., Case No. 4:96CV02225 SNL, July 17, 2006]
"The federal government has seized control of 43 oil wells in northwestern Pennsylvania that it says were financed with drug money laundered by a Florida marijuana smuggler in the 1970's." "Through a lot of years of work, a lot of evidence, and a lot of agents' time, we've been able to trace the money from the Channel Islands, to Monaco, to Switzerland and now to these oil fields in Pennsylvania," said an investigator with the Dept. of Homeland Security's immigration and customs enforcement bureau in Miami." [The New York Times, 1-26-05]
"There are more undercover operations that are ongoing [and] more special agents at the [IRS] are going undercover overseas". "[T]he United States is aggressively using its mutual legal assistance treaties with 55 countries to shut down those operations. . . The U.S. government's marked shift toward targeting not only taxpayers who participate in illegal offshore tax shelters, but also the promoters of those shelters, came in" Jan. 03". [TNT 188-5, 9-29-05]
Finally, for those who still don't get the message, any attempt at secrecy can be undercut by subpoenas served on friends, relatives [including ex-spouses], business associates, and others who might have knowledge of the debtor's affairs. [John E. Sullivan, III, Esq., Estate Tax Planning Advisor, August 2002] [Compare the cases of John M. Mathewson, Post-Gazette News, 3-01-01, and Peter M. Bond, The New York Times, 3-13-01].
If you feel that you have been deceived by an unscupulous promoter or that your asset protection structure may not be in compliance with federal and state laws, please contact us immediately for a free consultation to see if we can help you avoid costly government litigation, penalties, fines and possible prison time.
BUSINESS SUCCESSION PLANNING
A survey conducted in January 2005 by PriceWaterhouseCoopers reported that only 22% of small business owners reported doing any succession planning. That shortcoming has real, and often, dire consequences. Many small businesses wind up being liquidated in the equivalent of a fire sale because the owners did not take the time to plan, or to properly plan, for an orderly disposition or continuation of perhaps the largest asset in their estate.
One of the bigest dilemmas business owners face is how to fairly distribute their estate to their children when the major asset in their estate is the business, particularly if only one of their children is involved in the business. The choice they make can either promote family values and relationships or irrevocable split the family forever.
Contact us now on how you can properly protect your business and assets to pass along to your heirs in an equitable manner.
Business Succession Planning And Scam, Bogus Or Defective Trust
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