Another Peter Hendrickson Client Pleads Guilty - James G. Allen

[jcolvin2]

https://www.justice.gov/opa/pr/pennsylv ... ax-returns

Department of Justice
Office of Public Affairs

FOR IMMEDIATE RELEASE
Tuesday, June 4, 2019

Pennsylvania Anesthesiologist Pleads Guilty to Filing False Tax Returns
Failed to Report Over $3 Million Earned

A Pennsylvania anesthesiologist pleaded guilty today to filing a false income tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

James G. Allen Jr., 53, admitted as part of his guilty plea that he filed false tax returns for himself and his wife for the years 2010 through 2017 with the Internal Revenue Service (IRS). He failed to report more than $3 million that the pair earned as anesthesiologists on their tax returns. According to the plea agreement, the false tax returns that Allen filed caused a loss to the government of more than $900,000.

Allen admitted that the false tax returns were based on a tax fraud scheme promoted by Peter Hendrickson in his book, Cracking the Code. Hendrickson was convicted of filing false tax returns in 2009 and sentenced to prison.

U.S District Judge Arthur J. Schwab set sentencing for Nov. 12, 2019. Allen faces up to three years in prison and a $250,000 fine. As part of his plea, Allen has agreed to pay restitution to the IRS in the amount of $902,721.45.

Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Melissa S. Siskind and Carl F. Brooker, IV of the Tax Division, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website at www.justice.gov/tax.

[Famspear]

Another "victory" for a Pawn of Preposterously Paralogistic, Prevaricating Peter!

[Famspear]

The case is United States v. James G. Allen, Jr., no. 19-cr-00139, U.S. District Court for the Western District of Pennsylvania.

And, check out this thread from a few years back:

http://www.quatloos.com/Q-Forum/viewtopic.php?t=10595

[Famspear]

I just wonder whether this result came about due to Peter Hendrickson's failure to fully redact Dr. Allen's personal information on the lost horizons web site, as noted in the prior thread.

[jcolvin2]

The case is United States v. James G. Allen, Jr., no. 19-cr-00139, U.S. District Court for the Western District of Pennsylvania.

And, check out this thread from a few years back:

http://www.quatloos.com/Q-Forum/viewtopic.php?t=10595

Weird. In an effort to minimize the number of threads, I did a search of the Quatloos forums to see if we had discussed James Allen before, but did not turn up the prior thread. Thank goodness we have Famspear tracking all of Pete's disciples.

[Gregg]

Even in Pete's fictional universe, what are the odds of a doctor with that kind of income not getting some of it from what eventually traces back to a government funded benefit program. Surely he did some billing to Medicare, Medicaid or something.

[Jeffrey]

As an anesthesiologist all the drugs he used have to be approved by the FDA, the funding for drug research comes from federal grants, etc etc etc. There’s no way to argue his income wasn’t “federally connected”.

[jcolvin2]

The year involved in the information that Hendrickson failed to mask when reporting on Dr. Allen's victory related to 2011. The criminal conduct, with respect to income earned by both Dr. Allen and his wife (also an anesthesiologist), continued through the 2017 tax year.

From the plea agreement:

7. The total restitution consists of income tax losses for the following tax years plus interest on the tax loss amounts, to be calculated by the Internal Revenue Service as of the date of sentencing:

YEAR RESTITUTION
(Before Interest)
Forms 1040/1040EZ- James G. Allen, Jr.
2010 $41,798.51
2011 $69,186.94
2012 $57,266.00
2013 $76,934.00
2014 $88,979.00
2015 $79,725.00
2016 $75,902.00
2017 $63,525.00

Forms 1040/104A - Maria Munoz-Allen
2010 $24,094.00
2011 $10.198.00
2012 $28,923.00
2013 $81,273.00
2014 $34,309.00
2015 $44,008.00
2016 $57,529.00
2017 $69,071.00

James G. Allen, Jr. agrees to pay Title 26 interest on the restitution amounts. Interest runs from the last date prescribed for payment of the relevant tax liability until the date of sentencing. The government will provide an updated interest figure at or before sentencing.

[Famspear]

The Dossier for Peter Hendrickson at Dan Evans' web site has been updated for the James G. Allen case. See the dossier at "Tax Protester Dossiers/Gurus and Other Big Fish":

http://tpgurus.wikidot.com/peter-hendrickson

Counting Peter and Doreen Hendrickson, there are eight ten individuals known to have spent time in Federal prison for using the Cracking the Code tax evasion scam. Dr. Allen of Pennsylvania joins Mr. Billie R. Schofield of Rhode Island as an individual known to be awaiting sentencing as a result of having used the scam.

EDIT: Correction, and to clarify that ten individuals have already spent time in prison. Assuming that Schofield and Allen go to prison, the total will go up to twelve.

[The Observer]

How many of those ten convictions were the result of the accused pleading guilty? And what has been Pete's explanation for those who have pled guilty? I mean, he had them convinced at one point that CtC was correct interpretation of the law, so what would cause someone to suddenly decide that they needed to spend time in the Big House?

And my burning question is wondering how many of the people on the CtC refund list ended up returning the money because they realized that they had placed their necks on the chopping block. I realize that we will never know the answer to that due to many variables, but I still can't help wondering...

[Famspear]

How many of those ten convictions were the result of the accused pleading guilty?

Good question!

Of the cases we know about, four pleaded guilty:
Eugene George Warner
Michael O'Daniel
Billie R. Schofield
James G. Allen, Jr.

Eight were found guilty by Federal court juries:
Peter Hendrickson
Doreen Hendrickson
Roger Charles Menner
Carmen D'Agostino
Gregory P. Boyd
James A. Stuart
James R. Back
Peter A. Giambalvo

[Gregg]

Just the fact that 2/3rds of them went to trial shows they're a special kind of dumb.

The fact that most of them went to trial knowing of those before who them were waiting for them in prison after they were convicted finally caused me to take them off my short list for the Nobel Prize in Physics.

The ones who knew about the ones before them, and still went to trial, and did it Pro Se, well...we used to call them "Stupid on a Stick" back in Argillite.

These people make you realize it doesn't matter if they're stupid or if they're arrogant when they're both.

[The Observer]

So in other words, you have a 40% chance of recovering from a CtC-induced delusion.

[Gregg]

So in other words, you have a 40% chance of recovering from a CtC-induced delusion.

I get 33 1/3 %, but I got that math degree a long time ago, maybe it's the new math.



Oh wait, I'm counting Pete and Doreen, so that might not be fair to count.
Or maybe its just a George Harrison album.

[jcolvin2]

Or maybe its just a George Harrison album.

Albums (and songs) that Harrison might have written about Hendrickson in an alternate universe:

"Living in the Tax-Honesty World"
"Brainwashed"
"Gone Pete-O"
"All Things Must Pass"
"I Got My Mind Set On Fraud"
"CrackerCode Palace"

[Gregg]

Brainwashed is quite good.

George IRL did write Taxman

[notorial dissent]

How many of those ten convictions were the result of the accused pleading guilty? And what has been Pete's explanation for those who have pled guilty? I mean, he had them convinced at one point that CtC was correct interpretation of the law, so what would cause someone to suddenly decide that they needed to spend time in the Big House?

And my burning question is wondering how many of the people on the CtC refund list ended up returning the money because they realized that they had placed their necks on the chopping block. I realize that we will never know the answer to that due to many variables, but I still can't help wondering...

I may be wrong, but I don't remember Prattlin' Pete ever discussing/admitting the convictions and defections. I think he totally ignores them and forbids them being discussed or mentioned. Am I wrong?

I would have to say(at least from my perspective) based on the interaction(s) we've had and seen from/with the CTC attractees that they shall we say have more than a nodding acquaintance with the "stupid stick" as Gregg describes it, and are perhaps even addicted to it. I think that is a given and a constant with all involved, and added to that the indissoluble partnership with greed it makes quite a combination.

My suspicion is that the ones who "voluntarily" returned the money were the ones who were given the option of return or go to court and took the easier course not that they changed their beliefs.

I can't help feeling, that the ones who plead out did so not out of change of heart but out of self preservation, the deal they got was better than what they would have got at sentencing.

I have to say also, that I question if any of them actually changed their minds about CTC.

This is, as was pointed out, a special kind of stupid, and it just doesn't go away. See Kuglin.

[Gregg]

When one was shoved into Pete's face in a way he can't ignore, which has happened, he's always explained that they did it wrong, some bit of minutia was overlooked, an incantation not chanted with the proper words or they listened to lawyers and accountants who steered them astray.

[Gregg]

Oh, and his case was of course corrupt judges.

[Gannibal]

Hendrickson explains on Twitter that it definitely wasn't his schemes that got Allen in trouble:

Allen had maintained a false religious entity through which he purchased his house and cars, and concealed assets in offshore accounts. His CtC filings passed muster with the IRS even after elaborate challenge but were made charges against him because scaring people away from CtC is job one. So Jim was pressured into a plea deal in which he was compelled to say what he did about his CtC-educated filings so his wife would be let off the hook for the other stuff. [citations omitted] Jim's real problems had nothing to do with his CtC filings. A corrupt DoJ just used the other, nothing-to-do-with-CtC stuff to leverage him into being a fake poster-child as part of its 16-year-and-counting effort to suppress CtC. See http://losthorizons.com/A/CrimeOfTheCentury.htm for more on that.

P.S. Jim's problem behavior (the fake entity and the offshore accounts) had begun long before he found CtC. Before CtC was published, in fact. But even after Jim learned the truth about the tax and that none of that nonsense was needed, he left it all in place. When that real bad behavior was discovered, and it was seen that he could be made use of for the DoJ's purposes (well after his CtC-educated filings, which had excited no interest on their own), Jim and his wife were targeted for charges and a squeeze-job into a "useful" plea

https://twitter.com/LostHorizons1/statu ... 1522229248