Renaissance Gang

[The Observer]

Any word on the trial that was supposed to start this month for some of the ringleaders of this scam?

[Demosthenes]

FOR IMMEDIATE RELEASE
TAX

THURSDAY, APRIL 26, 2007

FORMER IRS DISTRICT DIRECTOR PLEADS GUILTY TO $1.3 MILLION TAX FRAUD

WASHINGTON – A former Internal Revenue Service (IRS) district director, pleaded guilty today to conspiring to defraud the United States through his involvement in a tax fraud scheme promoted by the Topeka, Kansas-based “Renaissance, The Tax People, Inc.,” the Justice Department and the Internal Revenue Service announced. During a hearing before U.S. District Judge Carlos Murguia in Kansas City, Kan., Jesse Ayala Cota admitted defrauding the U.S. Treasury of more than $1.3 million and to earning more than $300,000 from his participation in the scheme.

Cota, 65, of Vista, Calif., admitted in his plea agreement that from 1997 though April 2002, the conspirators, through Renaissance, operated a scheme to defraud the government and individuals by marketing a program designed to sell illegal tax deductions through false and misleading representations. His co-conspirators, Todd Eugene Strand and Daniel Joel Gleason, previously pleaded guilty to the same fraudulent scheme. Additionally, Cota admitted that during his participation in the conspiracy, those involved prepared or had others prepare false federal income tax returns resulting in a tax loss of approximately $1.3 million.

“The Justice Department’s Tax Division has made it a priority to stop tax fraud schemes by identifying, investigating and prosecuting those who promote them and those who use them,” said Eileen J. O’Connor, Assistant Attorney General for the Justice Department’s Tax Division. “These schemes are a fraud on the federal Treasury, and an insult to all who pay the taxes the law requires.”

Cota also admitted that he and his co-conspirators falsely assured their clients and others that Renaissance’s tax system was legal. Cota acknowledged that on Oct.16, 2000, a co-conspirator sent an e-mail message to customers falsely asserting that there existed written endorsements from “over 2,000 tax attorneys, enrolled agents and CPAs (certified public accountants) that every strategy contained in the Tax Relief System is absolutely sound, unassailable and proven over the past 40 years.” The e-mail also falsely claimed that “[t]he

training offered by Renaissance, the Tax People, through the Tax Relief System . . . was approved for continuing education credit for CPAs in all 50 states.”

“Mr. Cota was the director of Renaissance’s so-called ‘Tax Dream Team,’” said Eric Melgren, U.S. Attorney for the District of Kansas. “Renaissance used Cota’s credentials as a former district director for the Internal Revenue Service to lend the tax fraud scheme legitimacy and to induce people to join and to remain members.”

Renaissance used Cota’s IRS credentials, including his prior service as District Director, to induce people to join Renaissance, to assuage their concerns, and to keep them as members.

“This is an example of someone implying he has ‘insider information’ to help others enrich themselves by buying into his bogus tax avoidance system. However, what he sold was long-term legal and financial problems for those who bought his advice,” said IRS Criminal Investigation Chief Eileen C. Mayer. “Don’t be misled by promises of some secret path known only to insiders that is supposed to lead you to freedom from paying income taxes. There is no such path and there are no such secrets.”

Today’s plea brings the number of individuals who have pleaded guilty to felony charges in this and other Renaissance-related cases to seven, including Strand, Gleason, Thomas Steelman, Frankie Ruth, Elizabeth Crotts, and Alexander Federico.

Cota faces a potential maximum sentence of five years in prison followed by up to three years of supervised release, a $250,000 fine, and liability for the costs of prosecution. U.S. District Judge Carlos Murguia scheduled sentencing for January 2008. This case was investigated by the Internal Revenue Service, Criminal Investigation Division and the U.S. Postal Inspection Service.

[The Observer]

Has sentencing occurred for Mr. Cota yet?

[The Observer]

Still no word on the sentencing of Jesse Cota?

[Demosthenes]

01/15/2008 162 ORDER granting 158 Motion to Continue as to Jesse Ayala Cota (2). Sentencing set for 4/21/2008 at 10:30 AM before District Judge Carlos Murguia. Signed by District Judge Carlos Murguia on 1/15/08. (This is a TEXT ENTRY ONLY. There is no.pdf document associated with this entry.) (js) (Entered: 01/15/2008)

[The Observer]

Thanks, Demo.

[The Observer]

The last messages about Jesse Cota got lost in the server hiccup we had, but if I remember correctly he was going to be appearing for sentencing towards the end of June 2008.

Do we have a sentence handed out for Mr. Cota? Or did he file for another continuance?

[Demosthenes]

04/15/2008 181 MOTION to Continue Sentencing Hearing by Jesse Ayala Cota. (Thornhill, Mark) (Entered: 04/15/2008)

04/16/2008 182 ORDER granting 181 Motion to Continue as to Jesse Ayala Cota (2) Sentencing set for 6/9/2008 at 10:30 AM in Courtroom 463 (CM) before District Judge Carlos Murguia. Signed by District Judge Carlos Murguia on 4/16/08. (This is a TEXT ENTRY ONLY. There is no.pdf document associated with this entry.) (js) (Entered: 04/16/2008)

06/03/2008 187 MOTION to Continue Sentencing Date by Jesse Ayala Cota. (Thornhill, Mark) (Entered: 06/03/2008)

06/04/2008 188 ORDER granting 187 Motion to Continue as to Jesse Ayala Cota (2) Sentencing set for 7/21/2008 at 10:30 AM in Courtroom 463 (CM) before District Judge Carlos Murguia. Signed by District Judge Carlos Murguia on 6/4/08. (This is a TEXT ENTRY ONLY. There is no.pdf document associated with this entry.) (js) (Entered: 06/04/2008)

[Demosthenes]

July 7th sounds interesting...

WA 966190.1
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF KANSAS
UNITED STATES OF AMERICA, )
)
Plaintiff, )
) Case No: 04-20105-02-CM
v. )
)
JESSE AYALA COTA )
)
Defendant. )

MOTION BY DEFENDANT COTA TO CONTINUE SENTENCING DATE

Defendant Jesse Ayala Cota hereby moves the Court for a continuance and rescheduling of his sentencing in the captioned matter.

1. Mr. Cota’s sentencing currently is scheduled to occur on June 9, 2008.

2. Mr. Cota moves to reschedule the sentencing until July 21, 2008. Mr. Cota will respond to the Pre-Sentence Investigation Report on July 7, 2008.

3. Counsel for the United States, Assistant United States Attorney Scott Rask, has not yet had the opportunity to advise if the July 21 date is available on his calendar.

4. This continuance is necessary because of unresolved issues with the Pre-Sentence Investigation Report, health issues encountered with Mr. Cota’s relative and scheduling conflicts involving counsel.

For the forgoing reasons, defendant Jesse Ayala Cota hereby requests that the Court continue
until July 21, 2008, with the response to the Pre-Sentence Investigation Report to be served on July 7, 2008.

[The Observer]

Ok, I blame my Alzheimer's for thinking it was June. So we wait to see what happens on Monday.

Thanks again, Demo.

[Demosthenes]

It was scheduled for June. Remind me on the 7th.

[The Observer]

Ok its the 7th - what weasellike things did Mr. Cota say today?

[Demosthenes]

Still nothing on the docket.

[Demosthenes]

Sentencing is Monday, but no new filings are on the docket.

[Demosthenes]

07/18/2008 191 MOTION to Continue Sentencing Hearing by Jesse Ayala Cota. (Thornhill, Mark) (Entered: 07/18/2008)
07/18/2008 192 ORDER granting 191 Motion to Continue Sentencing as to Jesse Ayala Cota (2). Sentencing set for 11/10/2008 at 10:30 AM before District Judge Carlos Murguia. Signed by District Judge Carlos Murguia on 7/18/2008. (This is a TEXT ENTRY ONLY. There is no.pdf document associated with this entry.) (jw) (Entered: 07/18/2008)

[The Observer]

11/10/2008?I guess Mr. Cota's strategy is to postpone sentencing until after he dies. I would appreciate any attorney's insight on what valid reason the court would see for postponing justice time and time again.

[The Observer]

Ok, 11/10/2008 has come and passed. Any word on the sentencing hearing for Mr. Cota?

[Dezcad]

Ok, 11/10/2008 has come and passed. Any word on the sentencing hearing for Mr. Cota?

It has been continued until 12/15/2008.

10/10/2008 199 Unopposed MOTION to Continue Sentencing Hearing by Jesse Ayala Cota. (Thornhill, Mark) (Entered: 10/10/2008)
10/10/2008 200 ORDER granting 199 Motion to Continue Sentencing as to Jesse Ayala Cota (2). Sentencing set for 12/15/2008 at 10:30 AM in Courtroom 463 (CM) before District Judge Carlos Murguia. Signed by District Judge Carlos Murguia on 10/10/2008. (This is a TEXT ENTRY ONLY. T(jw) (Entered: 10/10/2008)

From the Unopposed Motion to Continue:

1. Mr. Cota and his wife recently were involved in a serious automobile accident.
This was a highway accident in which the Cota automobile was destroyed. Mr. Cota and his
wife suffered injuries which are very painful and temporarily disabling. Fortunately, the
condition of both Mr. Cota and his wife should improve over the next month. At this time,
however, Mr. Cota simply cannot travel on his own nor can he leave his wife in Arizona without
his assistance.
2. The United States has been informed of the circumstances of Mr. Cota’s accident
and this motion to continue the sentencing hearing. The United States has no objection to this
motion.
On the basis of the forgoing, Defendant Jesse Cota requests that his sentencing hearing be
rescheduled to December 15, 2008 at 9:30 a.m. or such other time as set by the Court.

[The Observer]

Thanks, Dezcad for the update.

[The Observer]

Did Mr. Cota get another delay in his sentencing hearing yesterday (12/15/2008)?