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New Jersey Man Convicted of Money Laundering in Connection With Large-Scale Off Shore Illegal Trust Program Based in Costa Rica, Reports U.S. Attorney

BOSTON, July 19 /PRNewswire/ -- A New Jersey man was convicted today by a federal trial jury of conspiring to launder money and laundering money-- most of it through an illegal offshore trust program that was also used by clients to move and conceal millions of dollars overseas in an effort to avoid paying U.S. taxes.

United States Attorney Michael J. Sullivan and Joseph A. Galasso, Special Agent in Charge of the U.S. Internal Revenue Service, Criminal Investigation for New England, announced today that RICHARD CASTELLINI, age 36, of 155 Carmel Road, Bridgeton, New Jersey was convicted by a trial jury sitting before U.S. District Judge Joseph L. Tauro of money laundering and money laundering conspiracy.

In March of 2001, an indictment was returned charging CASTELLINI and five others with money laundering conspiracy, money laundering and international money laundering. The defendants were charged in connection with the concealment of assets and false statements relative to bankruptcy and bank fraud. The following co-defendants were previously convicted on the same charges: Wayne Anderson, age 55, of Squaw Valley, California; Karolyn Grosnickle, age 58, of Hoodsport, Washington; Richard Marks, age 57, of Los Osos, California and Michael Gonet, age 49, Stow, Massachusetts. The last defendant, Keith Anderson, age 59, of Villa Punta Canon, Santa Ana, Costa Rica is awaiting extradition from Costa Rica in order to face the charges.

Citizens moving money offshore in order to avoid paying taxes or to launder the proceeds of criminal activity is a significant law enforcement problem in the United States," stated U.S. Attorney Sullivan. "This sophisticated group existed for the sole purpose of allowing U.S. citizens to avoid paying taxes and to hide their assets. Taxpayers should not be allowed to avoid their legal obligations through the use of organizations such as this one. Such activities are very serious criminal conduct and will investigated and prosecuted accordingly."

According to evidence presented during the trial, Anderson Ark and Associates ("Anderson Ark") is a Costa Rican offshore trust program that provides wealthy clients from the United States with the mechanism to move funds, on which they were obligated to pay taxes, offshore to Costa Rican bank accounts set up to make it appear that the funds were neither owned nor controlled by the clients. Anderson Ark clients in fact owned and controlled the accounts. Anderson Ark helped the clients repatriate the money in various ways, thus giving them the use of the untaxed money. For example, clients were able to avoid U.S. taxes (and launder funds) by deducting fictitious consulting invoices as business expenses on U.S. federal income tax returns.

The evidence at trial established that from approximately March 1999 through at least December 2000, CASTELLINI assisted an individual who, unbeknownst to him, was an undercover IRS agent, to launder money that he represented as concealed assets from a bankruptcy court. The undercover agent told CASTELLINI that he was seeking to conceal the proceeds of the fraud in connection with a bankruptcy so that he could invest them in a new business venture. In various stages, CASTELLINI and the other co-defendants moved the money either overseas, or through bank accounts in the United States and, after deducting a substantial fee for laundering the funds, returned it to bank accounts controlled by the undercover agent. Certain defendants told the undercover agent that they had laundered assets for other individuals in the past.

In a separate trial in California of two of the co-defendants on related charges, it was established that Anderson Ark was owned and controlled by Wayne and Keith Anderson. Grosnickle managed the day-to-day operation in the United States under the direction of the Andersons. Anderson Ark "information officers" were responsible for the initial contact with new clients and assisted these clients with the paperwork necessary to set up offshore corporations in Costa Rica. Anderson Ark accountants, including Marks, also helped those clients who desired more complex and secretive offshore companies to set up entities called "Complex Business Organizations" through Anderson Ark. Clients were then able to use these Complex Business Organizations to move legally and illegally obtained funds. They would do so by using fraudulent consulting invoices issued by Anderson Ark which they used to deduct the payments as business expenses on their personal income tax returns. Anderson Ark charged fees for setting up the offshore corporations as well as additional fees for moving the funds and creating the fake tax deductions. CASTELLINI, a customer of AA, and Gonet, a trust promoter, referred clients to Anderson Ark and, for a fee, assisted in laundering funds.

Judge Tauro scheduled sentencing for October 16, 2002. CASTELLINI faces up to 20 years' incarceration, to be followed by 5 years of supervised release, and a fine of $250,000 to $500,000, on each of the three counts on which he was convicted.

The case was investigated by Special Agents of the U.S. Internal Revenue Service, Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Allison D. Burroughs in Sullivan 's Economic Crimes Unit.

Yet Another on Anderson's Ark
Montrose
July 19, 2002

Feds investigate Montrose couple for alleged
tax-evasion scheme Scott Schwebke

MONTROSE - The Internal Revenue Service is investigating a Montrose couple for allegedly participating in a multi-million dollar international tax-evasion scheme.

IRS agents last month searched the home of Jim and Pamela Moran, who live at 13780 Larkspur Drive, according to a search warrant affidavit filed in U.S. District Court in Grand Junction.

The IRS seized from the home numerous computer disks, videotapes, financial records and documents, including a binder titled "money laundering enforcement seminar," according to a list of confiscated items.

The IRS alleges the Morans are chief information officers for Anderson's Ark and Associates (AAA), which it describes as a Costa Rica-based organization that allegedly schemes to defraud the United States government of millions of dollars in income taxes through foreign "shell entities" and offshore bank accounts.

Computer records indicate the Morans received more than $764,000 from AAA between April 17, 1998, and Feb. 2, 2001, according to the affidavit. The funds were allegedly earned in the United States and transferred to AAA accounts the Morans had set up in Costa Rica under the name of Eleazar Investments.

"The investigation has not revealed any other legitimate business being operated by the Morans other than AAA," the affidavit says.

The IRS also alleges the Morans have attempted to impede a grand jury investigation into AAA activities by destroying subpoenaed records, according to the affidavit.

No charges have been filed against the Morans, said John Harrison, a spokesman for IRS Criminal Investigations in Grand Junction. The Morans could not be reached for comment. Harrison declined to elaborate on the scope of the IRS probe.

"I can't comment on an ongoing investigation,' he said. The Morans have a "very significant" role in AAA, recruiting new members, promoting products and speaking at conferences throughout the United States and Canada, the search warrant affidavit says.

Two AAA products allegedly marketed by the Morans have included the "Look Forward" and "Look Back" programs. The Look Forward program uses Nevada shell entities, and domestic and foreign trusts to facilitate a drastic reduction in the client's current and future tax liabilities, the affidavit says.

The funds the client pays to the Nevada shell entity are passed through a series of AAA controlled domestic and foreign trusts and end up, less a handling fee, in a Costa Rican corporation controlled by the client, according to the affidavit. The client pays $4,200 to set up the corporation and is then issued a debit card that can be used at any ATM to repatriate the funds from Costa Rica.

The Look Back program uses both Nevada shell entities and AAA-controlled Costa Rican corporations to generate false business losses sufficient to eliminate a client's tax liability in the current year, and to receive a refund of all income taxes paid in the prior two tax years, according to the affidavit. 20. On the Hill, a Burst of Workplace-Related Legislation * The Washington Post.

Anderson's Ark

New Jersey Man Convicted of Money Laundering in Connection With Large-Scale Off Shore Illegal Trust Program Based in Costa Rica, Reports U.S. Attorney

Yet Another on Anderson's Ark Montrose July 19, 2002

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Yet Another on Anderson's Ark
Montrose
July 19, 2002