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Warning: Offshore asset protection offers can be a scam

August 6, 2009 by  

Offshore asset protection offers can be a scamThe Justice Department has filed a lawsuit against a couple who it alleges run a fraud scheme offering asset protection overseas.

The suit was filed in U.S. District Court in Southern Florida and claims a married couple hid customers’ assets through transactions involving fraudulent foreign trusts, sham foreign corporations and bogus trustees. This created an illusion the businesses were based overseas, when in fact they continued to be owned and operated in the U.S.

It also says the defendants falsely told customers that these transactions made their income and assets exempt from U.S. income tax.

Between 2000 and 2005, the suit further alleges, approximately $28 million was channeled through the scheme, and the U.S. Treasury losses are estimated at $4.3 million.

"The Justice Department and Internal Revenue Service are working vigorously to stop tax fraud schemes and detect those who use them," says John A. DiCicco, acting assistant attorney general for the Justice Department’s Tax Division.

Since President Obama took office, the authorities have intensified their efforts to restrain the practice of offshore asset protection.

They gained additional momentum after politicians gathered at the G20 summit in London in April vowed to crack down on tax havens by introducing cross-border regulation.

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  • Jeepster

    Okay, I give up! What is the name of these fraudulent foreign trusts, sham foreign corporations and bogus trustees?

  • Al B Tross

    Another result of de-regulation.

    Good for the clever entrepeneurs these folks are, evading the socialist Justice Dept. Any organization that enforces any so-called regulation, or “law”, as liberals like to call it, should be banned.

    Silly laws, getting in the way of freedom.

    If you are scammed it’s your fault. Just like if a corporation lies and sells you faulty products, it’s your fault.

    Just like the woman who was raped by U.S. contractors in Iraq, it had to be her fault.

    Just like the people of Haiti, it’s their fault to be so poor, and make deals with the Devil, all their fault.

    Since, according to every Conservative on this site, the US Government is totally incompetant, except when a Republican is in office, and these policies, while introduced and endorsed by Conservatives, have brought the largest level of Corporate corruption ever, and almost ruined our economy, it’s obviously Mr. Obamas’ fault.

    Yes folks, thats’ Sarcasm.

  • David K. Meller

    Dear Al B Tross,

    You make some well taken points in your post. Conservatives do sometimes support their spokesmen (especially in the “war-on-terror” and so-called “national defence”) in a very childish and unintelligent manner. Liberals, too, have sometimes approached their leaders, from FDR to Obama, with an attitude of worship more appropriate to divinities than to mortal men! Both sides are wrong when we worship politicians and State Power!

    However, where DO we go from here? Of course, the Stupid Party (GOP) is just as responsible for the mess we are in, especially in foreign policy and useless wars, as are the dumbercrats, but the all-important question remains, where does that leave the rest of us?

    Our country is rapidly entering bankruptcy, where the government issued greenback (Federal Reserve Notes) will be valued for kindling or toilet paper, where American energy “independence” will be a fait accompli because OPEC won’t accept “dollars” any longer, When the Chinese and Japanese can no longer afford to hold dollar denominated US Treasury notes, and (at least temporarily) we Americans have to resort to barter until a real monetary system evolves again…

    Where does that leave us when our Armed forces are stranded overseas by the million because the FedGov no longer has the money to repatriate them home even if they want to, when bankrupt State governments (also run by the same incompetent Dems and GOPers) who led us to this sorry state once again secede from the gang of usurpers and criminals in DC, but can’t do much more than that.

    When that starts happening, I think that we Americans ought to be in a position to survive, and to help each other, especially since the government won’t be in any position except to make things a LOT worse for almost everyone–except bankers, generals and corporate crooks like themselves!

    In any event, the things uniting us during the coming disaster, (and I just gave the barest outlines of what can go wrong) will be far more important to us as Americans and Human beings than the petty and infantile divisions of whether you were a “democrat” or a Republican”! If we get in each others faces–or go for each other’s throats–while this is happening, we won’t have a country left–and won’t deserve one!!

    wishing you…

    David K. Meller

  • Leo

    Pretty soon even the Red Chinese will start
    OWNING America’s broke businesses.
    This Administration and everyone else in the
    world seems to be on THEIR SIDE!
    The Tragedy !


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