Posted on 03/01/2005 11:36:49 AM PST by anymouse
WASHINGTON, D.C. - Assistant Attorney General Eileen J. O'Connor, of the Justice Department's Tax Division, Attorney Kenneth L. Wainstein of the District of Columbia, Mark W. Everson, Internal Revenue Service Commissioner; and Daniel J. Black, Deputy Chief Financial Officer for the District of Columbia's Office of Tax and Revenue, jointly announced the indictment and arrest of Walter Anderson, 51, a local telecommunications entrepreneur, on tax evasion and related charges. A federal grand jury sitting in Washington, D.C. returned the 12-count indictment last Wednesday under seal. Anderson was arrested Saturday, February 26 and will be presented this afternoon before a U.S. Magistrate Judge.
The indictment charges that Anderson engaged in a tax evasion scheme, obstructed the Internal Revenue Service, and defrauded the District of Columbia government by failing to pay well in excess of $200 million in taxes owed to the federal and District of Columbia governments.
"Most people obey the tax laws: they report their income to the IRS and pay the taxes due," said Assistant Attorney General O'Connor. "Honest taxpayers deserve the assurance that those who willfully dodge their tax obligations will be investigated, prosecuted, and punished."
U.S. Attorney Wainstein stated, "Our system of government demands that citizens honestly meet their federal and state tax obligations. The indictment alleges that the defendant in this case circumvented the tax laws to evade federal and District of Columbia taxes. In a variety of schemes lasting over nine years, he allegedly concealed almost a half a billion dollars in personal income and went to great lengths to obstruct any scrutiny or investigation of his tax evasion. Thanks to the determined efforts of the IRS investigators and the prosecutors from our office and the Tax Division, we will now seek to have him held accountable for defrauding the United States and the District of Columbia."
IRS Commissioner Everson remarked, "Average Americans deserve to feel confident that when they pay their taxes, neighbors and competitors are doing the same. The IRS holds all Americans, including the most wealthy, to the same standards of honesty."
"The Office of Tax and Revenue (OTR) cannot and will not allow non-compliance of the tax laws in the District of Columbia," said Daniel L. Black, Jr. deputy chief financial officer of the Office of Tax and Revenue. "OTR will actively seek to halt any fraudulent behavior, and due to OTR's stepped up compliance efforts, we are aggressively pursuing all types of tax evasion, fraud or misrepresentation, no matter what the amount of tax owed."
The indictment alleges that over a five-year period, Walter Anderson personally earned nearly a half billion dollars through investments in business ventures he conducted through offshore corporations he set up to make it appear that he was not personally earning these amounts.
Walter Anderson was involved in starting up long distance telecommunications businesses at a time when the industry was just being deregulated. The grand jury charged that, beginning in 1992, as Anderson realized that the merger of his first successful company -Mid-Atlantic Telecom- with another company would result in substantial taxable earnings, Anderson allegedly formed an offshore corporation to receive and disguise his anticipated income. At the time, Anderson allegedly owed the IRS hundreds of thousands of dollars in back taxes, interest and penalties for failing to pay federal income tax in prior years.
As alleged in the indictment, Anderson created an elaborate evasion scheme to avoid paying the tax that the law requires. In October 1992, Anderson allegedly formed an offshore corporation named Gold & Appel Transfer in the British Virgin Islands (BVI) and hired a trust company to serve as Gold & Appel's registered agent and sole director. Gold & Appel was allegedly owned by another BVI company, Icomnet, previously formed by Anderson. Anderson allegedly granted himself an exclusive option to purchase Gold & Appel shares for a nominal sum, insuring that no one else could own these remaining shares. By forming the corporations in that manner, neither the option nor Anderson's name was recorded in the BVI's public records. As a result, the indictment alleges Anderson hid his ownership of the corporations that held these assets, but was still able to maintain complete control.
The indictment also alleges that after other merger activity with telecommunications companies he owned, Anderson further obscured his ownership of Gold & Appel, by using an alias and forming another offshore corporation-Iceberg Transport, S.A.-in Panama, another country with strict secrecy laws. To allegedly disguise his ownership of this company, Iceberg was created as a "bearer share" company. This meant that, unlike U.S. corporations, there was no central registry the company; whoever had physical control over the actual share certificates was considered the owner. Anderson allegedly received the shares, using his alias, in a mailbox drop in Amsterdam. Once he set up Iceberg, Anderson then allegedly directed the transfer of shares of Gold & Appel to Iceberg, and represented that Iceberg owned Gold & Appel. Anderson allegedly hired a trust company and its employees to serve as registered agent for the company and offices and directors of Iceberg ensured that he had complete control over it.
The indictment further alleges between October 1992 and July 1996, Anderson transferred his ownership interests in three telecommunications companies-Mid-Atlantic Telecom, Esprit Telecom and Telco Communications Group-to Gold & Appel and Iceberg. In this way, when appreciated stock was sold, or other taxable events occurred, Gold & Appel and Iceberg not Anderson would appear to be the taxpayer.
The indictment alleges that after these transfers were made, each of these telecommunication corporations became dramatically more valuable. Between 1995 and 1999, Anderson allegedly used the assets of Gold & Appel and Iceberg, which included the profits realized from these three telecommunication corporations, to invest in other business ventures. Anderson allegedly generated more than $450,000,000 in earnings for Gold & Appel and Iceberg during this period.
The indictment alleges that as a U.S. citizen and a resident of the District of Columbia, Anderson was required to report the net earnings of Gold & Appel as income on his federal and District of Columbia individual income tax returns. Anderson allegedly failed to report this income on either his federal or District of Columbia tax returns and failed to pay approximately $170 million in federal income taxes and $40 million in D.C. income taxes.
During the time in question, Anderson allegedly claimed he was living in Florida, which has no state income tax, although he allegedly resided at various times in two different residences within the District. District of Columbia law requires residents to pay a "use tax" for items purchased outside of the District but used there.
If convicted of the charges, the defendant faces up to 80 years in prison.
In announcing the indictment, U.S. Attorney Wainstein, Assistant Attorney General O'Connor, IRS Commissioner Everson, and Deputy Chief Financial Officer Black commended the efforts of the team of investigators and prosecutors. DOJ Tax Division Trial Attorney Karen E. Kelly and Assistant United States Attorney Susan B. Menzer will prosecute the case jointly.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws. Every defendant is presumed innocent until and unless found guilty.
He once invested $21 million in the Russian space station Mir, saying that he hoped to rehabilitate it and charge hefty fees for millionaires to tour space. That led to a rare burst of public notice, including a profile in the New York Times Magazine in 2000 which quoted Anderson as saying he had a "personal" hatred for government.
Five years ago, Anderson put up $20 million to try to salvage Mir, destined to burn up on eventual re-entry. He hoped to lease it to drug companies or firms interested in micro-gravity research, but the only market that showed any promise was space tourism. Dennis Tito, a high-rolling investor, agreed to pay over $20 million for a visit to Mir to become the world's first space tourist. And reality TV producer Mark Burnett signed a contract with MirCorp for a show, “Destination: Mir.” Contestants would train in Russia, with the winner getting a trip to the space station.
NY Times: Telecom Executive Accused of Evading $210 Million in Taxes
Space entrepreneur ping.
http://www.freedomabovefortune.com/
Go read this site. Will give you a different insight on the IRS.
The man, of course, is a mad, manic genius. Once he is jailed he can reorganize the Federal Bureau of Prisons
(at a small fee) just as Martha put up new curtains.
The issue is not about what is legal or constitutional. The issue is: who has more time, power and backing (financial, police, military) to get their way. You are at a disadvantage. You cannot win this war unless you are willing to risk loosing EVERYTHING. The first rule in this battle is to own nothing. Rent everything and be completely out of the banking system and be self employed operating on a cash only basis.
Usually guys like this have a fleet of tax lawyers to negotiate a settlement with the IRS before it gets to this.
And people look at me strangely when I ask why would ANYONE in their right mind give the government the power to send people with guns to imprison or kill you if you don't pay your taxes.
Actually, though I am staunchly Catholic and opposed to abortion, I don't really care that he gave a couple of thousand to an abortion group. Had I not paid my taxes, I would have had a similar amount to give to the opposing cause (but I doubt I would have been able to resist the temptation of a new big screen tv!).
What I found ironic is that the same loony tunes who rant about gubmint agents comin' on our land generally seem to be the folks who condemn abortion the strongest.
Honestly, it does make me pretty mad to see a guy duck half a billion dollars in tax liability, leaving the rest of us who actually pay our taxes to pick up $5-10 a piece just in his tax liability alone! I'm glad they got him, and I hope the selfish jerk rots ina "pound you in the a**" Federal prison for twenty years.
If you believe that taxation rates are too high, good for you. Do something about it through the democratic process. You don't get to skate on the obligations of citizenship, like this guy, and expect the rest of us to willingly pick up all the costs government just because you don't feel like paying!
(p.s.- The costs of government include the army, by the way.)
The indictment charges that Anderson engaged in a tax evasion scheme, obstructed the Internal Revenue Service, and defrauded the District of Columbia government by failing to pay well in excess of $200 million in taxes owed to the federal and District of Columbia governments.....
The indictment alleges that as a ***U.S. citizen ***and a resident of the District of Columbia, Anderson was required to report the net earnings of Gold & Appel as income on his federal and District of Columbia individual income tax returns. Anderson allegedly failed to report this income on either his federal or District of Columbia tax returns and failed to pay approximately $170 million in federal income taxes and $40 million in D.C. income taxes.
__________________________________________________________
Well, as I understand it, they MAY have him here....the US = DC [see The 14th Amendment Index at usa-the-republic.com Explains how the 14th Amendment made us all serfs to the financial interests, who, if the real truth be known, actually have owned us from our founding.]. See also *** THE TRUTH AS I SEE IT - GOVERNANCE - us THE REPUBLIC VS US THE CORPORATION http://www.gemworld.com/USAvsUS.htm [another fascinating site-covers a lot of bases in an easy-to-comprehend manner]. The truth will set you free.
I.R.S. :
The Real Facts
The "Internal Revenue Code" was first enacted in 1939 and was called the "Public Salary Tax Act of 1939". Since that time, the name of the Public Salary Tax Act was changed to the "Internal Revenue Code", which was amended in 1953 and 1987. However, the amendments did not change the fact that it only applies to the District of Columbia and the federal territories and possessions.
There is no provision in the Internal Revenue Code that imposes a direct income tax on the Citizens of the fifty (50) States, nor a requirement to file an income tax return, unless employed by the Federal Government. If you are a Citizen of Florida, a Republic, or any other state, and not a Federal Employee, nor a citizen or resident of the District of Columbia, you are not required by law to file a U.S. Individual Income Tax Return.
http://www.afn.org/~govern/IRSkinny.html
Then again, they may NOT have Anderson on THESE grounds:
Internal Revenue Laws Were Repealed in 1939
http://www.gemworld.com/US-TaxRepealed.html
'Actually, objectively they (govt) don't have that right (power). Problem is the constitution and other founding documents behoove us as a free people to rally to the defense of such a threatened comrade who hasn't paid his taxes and overthrow (stop) any govt that would abrogate any of (his) the guarantees in the U.S. constitution, but you would be hard pressed to find anyone (or group) who would come to his aide for fear of loosing his (their) own property, family, wealth, life....Sixteenth amendment was never legally ratified. The whole IRS thing is a fraud, but the thing (hideous monster) has taken on a life of its own...'
Truer words were never spoken, however, part of the problem is that the usurpers have also controlled our education and media, so that the people have been suckered into accepting their servitude as the natural order of things for a people Jesus Christ set free and called to be priests and kings on His Holy Mt. Zion (Psalm 2). The majority of the people think that the government is their friend. They need to know this:
'U.S. citizens were declared enemies of the U.S. by F.D.R. by Executive Order No. 2040 and ratified by Congress on March 9, 1933
FDR changed the meaning of The Trading with the Enemy Act of December 6, 1917 by changing the word "without" to citizens "within" the United States'
They need to know, that to be the slaves of men, is NOT the ultimate plan God has in mind for HIS people:
Gal 4:31 So then, brethren, we are not children of the bondwoman, but of the free. http://www.blueletterbible.org/kjv/Gal/Gal004.html#31
Jhn 8:36 If the Son therefore shall make you free, ye shall be free indeed. http://www.blueletterbible.org/kjv/Jhn/Jhn008.html#36
Gal 5:1 — Stand fast therefore in the liberty wherewith Christ hath made us free, and be not entangled again with the yoke of bondage. http://www.blueletterbible.org/tsk_b/Gal/5/1.html
Mic 4:7 — And I will make her that halted a remnant, and ***her that was cast far off a strong nation: and the LORD shall reign over them in mount Zion from henceforth, even for ever.
http://www.blueletterbible.org/tsk_b/Mic/4/7.html
JESUS ON TAXES: http://home.hiwaay.net/~becraft/matthew.htm
[Note Matthew 17:25: Kings of the Earth and Psalm 2:2]
The Law That Never Was: The story about the ratification of the 16th Amendment, by Bill Benson.
http://www.thelawthatneverwas.com/
We need to keep educating ourselves and others for the many battles ahead.
'And people look at me strangely when I ask why would ANYONE in their right mind give the government the power to send people with guns to imprison or kill you if you don't pay your taxes.'
Patrick Henry, who I believe was one of the TRUE Christians of the 'founding fathers' is one of the few that saw them coming 200 years ago. A couple of years ago, I ran across a bill that had been languishing in Congress for years, to give special honor to him as a special patriot. Not surprisingly, it didn't get many (or any) takers. It's undoubtedly still sitting there, collecting dust.
Terri ping:
'Bond Servant
To cover the debt in 1933 and future debt, the corporate government determined and established the value of the future labor of each individual in its jurisdiction to be $630,000. A bond of $630,000 is set on each Certificate of Live Birth. The certificates are bundled together into sets and then placed as securities on the open market. These certificates are then purchased by the Federal Reserve and/or foreign bankers. The purchaser is the "holder" of "Title." This process made each and every person in this jurisdiction a bond servant.'
[ http://www.gemworld.com/USAvsUS.htm ].
Well, that's the first time I saw our 'assessment' in black and white. Cattle...can you say cattle? When the herd don't produce, cull, and render into more useful 'products'. Do you think Terri had time to pay her 'share' to the Kings of the Earth [ http://www.apfn.net/DOC-100_bankruptcy.htm ]?
To All:
For another good run-down on how they have dealt with the people of this country, be sure to see:
Mathematic PROOF: Federal Reserve [whose gestapo arm is the IRS] CAUSED Great Depression
Part 1: Mathematic PROOF the Federal Reserve CAUSED the Great Depression.
Part 2: Congressman Louis T. McFadden's famous 1932 Congressional Address. Nature and iniquitous history of the private international banks deceitfully
called The Federal Reserve System. A blueprint for irreversible multiplication of debt in proportion to commerce, until world-wide economic collapse under
insoluble debt. Tens of thousands of visitors voted this page a Starting Point Hotsite award, November 7, 1998. Hopefully, mathematic proof of a singular prescription for perfected economy will ultimately serve as the impetus for
world-wide establishment of mathematically perfected economy.
http://www.perfecteconomy.com/principal---federal-reserve-system.html [one of the links at the apfn.org link above]
Redneck is a state of mind and not necessarily a location.
Ignore that last. Wrong thread. DOH!
*** U.S. Supreme Court Chief Justice Admits No 'Failure To File' Income Tax Law Exists
'...He (Chief Justice Rhenquist) and the United States attorney (Kent Jones) admit there is NO statute (LAW) that makes it a crime for "failure to file" an income tax return!
QUOTE: "I'm not familiar with a statute that makes that a crime by itself" ..."but the fact that you didn't file...frankly...it's my impression that that would not by itself be a crime".
..then it says on pg. 6 lines 20-25 of the transcript, Chief Justice of the United States Supreme Court William Rhenquist said: "We'd better not let the word get out"..."We'll keep it just among ourselves"... '
http://www.apfn.net/Doc-100_bankruptcy36.htm
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