IRS raids suspected promoters of tax-evasion schemes

WASHINGTON
(March 6, 2001 11:41 a.m. EST ) - Hundreds of Internal Revenue Service investigators have raided several suspected promoters of tax-evasion schemes in what the agency calls its most extensive crackdown ever.

Federal prosecutors said six people in New Jersey, Washington state, California and Costa Rica were charged in a conspiracy to launder $470,000 through an illegal offshore trust program also used by clients to avoid paying U.S. taxes.

"By targeting this corrupt organization, we are sending a strong message that law enforcement views such activities as very serious criminal conduct and will devote the necessary resources to prosecute such crime," U.S. Attorney Donald K. Stern of Boston said.

The IRS, which has stepped up pursuit of promoters who used foreign banks and trusts to help people hide their income, sent 300 of its 2,700 criminal tax investigators to make the arrests and conduct more than three dozen searches last week.

"Last week's historic enforcement activities send an unmistakable signal about IRS commitment to pursue investigations of promoters and their clients who would try to move money offshore to evade taxes," IRS Commissioner Charles O. Rossotti told The New York Times for a story published Tuesday.

Those arrested were affiliated with Anderson's Ark, a company that sells what the agency calls sham trusts for tax evaders. Two men were charged with tax evasion and money laundering; the others were charged as accessories.

Keith Anderson, the owner of Anderson's Ark, said he and those arrested during raids in Costa Rica and Washington state had done nothing wrong and would be vindicated if tried.

The IRS also raided the Institute of Global Property, an Internet company; author Jerome Schneider's California office and the offices of Schneider's lawyer, Eric Witmeyer.

Schneider wrote and published "The Complete Guide to Offshore Money Havens" and "How to Own Your Own Private International Bank." Harland Braun, Schneider's lawyer, said his client had not violated any laws.

News Copyright © 2000 Interest!ALERT

-----