TP Looks For The Secret Treasury

[The Observer]

Man Accused of $20 Billion Tax Fraud

THE ORANGE COUNTY REGISTER
July 21, 2010

Man Accused of $20 Billion Tax Fraud
By JON CASSIDY and PEGGY LOWE

An Orange County man accused of filing false tax returns claiming $20 billion in refunds retaliated against judges, tax and financial authorities, Secret Service agents, and federal prosecutors involved in the case by taking out false liens against them, according to an indictment by a federal grand jury.

Thanh Viet Jeremy Cao, 28, of Rancho Santa Margarita and Las Vegas, is accused of taking out 22 false liens ranging from $25 million to $300 million against employees of the Securities and Exchange Commission, the U.S. Attorney's Office, the Secret Service and the Internal Revenue Service, as well as false liens against four federal judges, the Department of Justice announced Wednesday.

Last year, Cao was charged in another case with trying to get tax refunds using a theory about a "secret treasury" that prosecutors called "complete fiction."

Cao, whose business was Phoenix Financial Management Group in Lake Forest, filed fraudulent forms with the IRS on behalf of six clients "that grossly overstate his customers income and withholding to get grossly inflated tax refund checks," according to a complaint filed Tuesday in U.S. District Court in Los Angeles.

Cao used a theory called "redemption" or "commercial redemption" - which prosecutors called a "rejected tax defier theory." This theory claims that the U.S. Treasury keeps millions in a secret treasury account for each taxpayer. The secret account can be used to pay a taxpayer's debts and tax liabilities if a taxpayer sends the IRS and banks certain documents, the theory goes.

"Cao's theory is complete fiction," the complaint reads.

Cao is one of several people from across the country who used this "redemption" theory in an attempt to get millions in refunds, according to the U.S. Department of Justice.

In all, they have requested a total of $3.3 trillion in fraudulent refunds, according to IRS figures.

In the indictment announced Wednesday, Cao is accused of filing retaliatory false liens against IRS employees, filing false returns in the "redemption" scheme, and filing fraudulent returns claiming $20 billion in refunds due, among other things.

If convicted, Cao faces up to 223 years in prison and a fine of $5.75 million.

[Cathulhu]

He's 28 years old and has managed to screw up this much...wow. Just wow.

[bmielke]

He's 28 years old and has managed to screw up this much...wow. Just wow.

When I was a RA in college I had two residents that decided it would be a good idea to see who could get the most underage drinking violations in a semester. They managed 7 a piece. Anyone can be a royal screw up most especially we young folks.

If convicted, Cao faces up to 223 years in prison and a fine of $5.75 million.

If he serves 85% he'll get out when he's 217 1/2 who knows what medicine will make possible by then, or maybe they'll freeze him like in demolition man.

[The Observer]

If convicted, Cao faces up to 223 years in prison and a fine of $5.75 million.

If he serves 85% he'll get out when he's 217 1/2 who knows what medicine will make possible by then, or maybe they'll freeze him like in demolition man.

The only reason the sentence is so punitive is that Cao was getting way too close to discovering our Secret Treasury.

[grixit]

And people used to complain that the vietnamese population of Orange County would never successfully assimilate.