Anderson, Dan

[Demosthenes]

FOR IMMEDIATE RELEASE TAX
TUESDAY, MAY 26, 2009 (202) 514-2007
http://WWW.USDOJ.GOV TDD (202) 514-1888
UNITED STATES SUES CALIFORNIA MAN TO BAR HIM
FROM PROMOTING FRAUDULENT TAX SCHEMES
Defendant Organized Two Tax Fraud Companies Over Eight Year Period.
WASHINGTON — The Justice Department announced today that it has filed suit against convicted tax fraud promoter Daniel Andersen to enjoin him from promoting fraudulent tax schemes. The government’s complaint alleges that Andersen directed the activities of both the Institute for Global Prosperity (between 1996 and 2002) and the Stratia Corporation (between 2002 and 2004). The lawsuit states that Andersen used these organizations to promote the fraudulent tax schemes sold by others in a series of audio recordings and at offshore conferences.
Andersen, a co-founder of the Institute for Global Prosperity, was indicted in 2004 for conspiring to defraud the United States. He pleaded guilty in 2004, and in July 2008, a federal judge sentenced him to 30 months imprisonment for his offenses.
Global Prosperity orchestrated offshore conferences where individuals, which Global Prosperity touted as “experts,” hawked numerous tax fraud schemes. According to the government’s complaint, these vendors falsely told customers that they could revoke or relinquish their Social Security numbers using a U.C.C.-1 filing statement and that wages earned inside the United States are not subject to income taxes. The court papers state that Global Prosperity promoted and sold its products through a multi-level marketing system that rewarded existing salespeople for recruiting new salespeople.
The government complaint asserts that Global Prosperity received cease-and-desist orders from six states’ attorneys general in 1997 and 1998, but that Andersen ignored these orders and continued to promote the organization under a different name and offshore locations. According to court documents, after Global Prosperity disbanded in 2002, Andersen and Lorenzo “Zo” Lamantia founded Stratia Corporation, which continued to promote fraudulent tax schemes, including the fraudulent schemes formerly sold by enjoined tax-fraud promoter Bruce Hawkins. The government enjoined Lamantia from promoting fraudulent tax schemes in July, 2006.
Since 2001, the Justice Department has obtained injunctions against more than 400 tax preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website and about the Justice Department’s Tax Division is available on the Justice Department website.

[jcolvin2]

What is the point in enjoining someone who pled guilty and is in prison? The conduct complained about related to 1996 to 2004. Isn't this like closing the barn door FIVE YEARS after the horse has left? DOJ Tax should not have brought the suit (to obtain an injunction it is incumbent on DOJ Tax to demonstrate that the person is likely to repeat the bad conduct in the absence of an injunction), and the court should not rubber-stamp what is likely to be an unopposed filing. It seems like DOJ Tax is simply attempting to obtain another stat.

[jg]

Perhaps there is some evidence of continued promotion while incarcerated?
But, lacking that, I wholeheartedly agree it makes no sense to enjoin now.

[Demosthenes]

The guy's getting out of prison in a few months and my guess is he's been itching to get back into the tax scam industry.

[jcolvin2]

Dan Anderson pled guilty and cooperated with the government in the prosecution of David Struckman (the most zany of the three IGP Founders). Had he been a bad boy after 2004, the government no doubt would have pointed this out at his sentencing, and Dan would have done five years rather than 18 months. Plus, he will likely be on supervised release for a couple of years after he is released, and Probation would likely squawk if he attempted to get back in the game.

While I certainly would not buy a used car from the guy, I have no reason to speculate that he is "itching to get back in the tax scam industry." If the government has evidence that he is likely to start selling tax scams again (e.g. he has participated more recently in companies that offer tax scam gimicks), more power to DOJ-Tax. If they do not, it is waste of taxpayer time and money just to add another count to DOJ-Tax's running total of 400+ injunctions.

If I recall correctly, it was publicity about IGP and other tax scams in 2001 that led IRS and DOJ-Tax to change their approach to injunctions, i.e. to permit civil injunction actions to go forward at the same time as criminal investigations (which can last years), sometimes referred to as "parallel proceedings." The new policy has the salutary effect of providing protection for the public via injunction prior to the time that criminal charges are ultimately filed. It is ironic that the IRS/DOJ did not pursue an injunction in the Dan Anderson case (publicity with respect to which led to the change in policy) in 2002, and only brought an injunction action after the guy was sent to prison.

[jcolvin2]

FEDERAL COURT PERMANENTLY ENJOINS FOUNDER OF THE
"GLOBAL PROSPERITY" TAX SCHEME


http://www.usdoj.gov/tax/txdv09793.htm


Daniel Andersen organized scheme that lured in over 44,000
customers and earned over $50 million

THURSDAY, AUGUST 13, 2009


WASHINGTON -- A federal court in Seattle has permanently barred Daniel Andersen from promoting fraudulent tax schemes, the Justice Department announced today. Documents the government filed on August 11 requested that the court enjoin Andersen, arguing that he was a founding member of the Institute for Global Prosperity, an entity that promoted both its own fraudulent tax scheme and the fraudulent tax schemes of others.
According to papers filed with the court, Andersen and David Struckman founded Global Prosperity in 1996, and Lorenzo Lamantia joined their scheme as "founder" in 1998. By 2002, Global Prosperity had sold its products to over 44,000 customers and had earned over $50 million in the process. Global Prosperity charged customers $1,250 for a 12-part audio course containing multiple erroneous theories about federal income taxes, which the government described as "nonsense."

The government's request that the court enjoin Andersen explains that Andersen is currently in federal prison in Lompoc, Calif., in connection with his promotion of the Global Prosperity scheme. The court papers explain that other tax fraud vendors sold their schemes at conferences Global Prosperity organized, and that many of these vendors have been sentenced to prison for federal tax crimes, including Johnny "Liberty" Van Hove, Keith Anderson, and Dennis Poseley. Global Prosperity charged as much as $37,000 to attend such conferences.

John DiCicco, Acting Assistant Attorney General for the Justice Department's Tax Division, thanked Tax Division trial attorney Robert Fay and IRS Revenue Agents Terry Martin and Cynthia Zambito for their efforts in obtaining the injunction.

Since 2001, the Justice Department's Tax Division has obtained injunctions against more than 410 tax fraud promoters and unscrupulous tax preparers. Information about these cases is available on the Justice Department website.

For copy or order:

http://www.usdoj.gov/tax/DAndersen_Injunction_Order.pdf