David Champion - Injunction Action

[jcolvin2]

http://www.justice.gov/opa/pr/2011/Febr ... x-170.html

Department of Justice
Office of Public Affairs

FOR IMMEDIATE RELEASEThursday, February 10, 2011Justice Department Sues Nevada Man to Stop Alleged Tax Fraud Scheme Former Los Angeles Resident Allegedly Helps Customers Form Sham Trusts to Evade Federal Taxes

WASHINGTON – The United States has sued David Champion of Pahrump, Nev., seeking to bar him from promoting an alleged tax fraud scheme designed to assist his customers evade paying federal taxes, the Justice Department announced today.

According to the civil injunction complaint filed in Los Angeles federal court, Champion promotes a tax fraud scheme based on the frivolous claim that U.S. citizens can choose to opt out of federal income taxation by declaring themselves to be "non-taxpayers." The lawsuit alleges that Champion, who previously resided in Los Angeles, helps customers evade federal taxes by setting up sham "pure trusts" to which they transfer their businesses and personal assets.

The government further alleges that Champion falsely tells his customers that their purported trusts need not file income tax returns or pay taxes. According to the complaint, Champion himself has an unpaid federal tax liability exceeding $800,000.

Champion’s misconduct, the government alleges, has led to civil and criminal penalties against his customers. The complaint states that Internal Revenue Service inquiries concerning eight of Champion’s customers revealed that he had assisted them in evading payment of approximately $1.4 million in income taxes.

In the past decade, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop tax fraud promoters and tax return preparers. Information about these cases is available on the Justice Department website.

[jcolvin2]

I have a PDF of the complaint, if anyone wants to make it available.

[Famspear]

Tidbits from the government's Complaint:

Champion has not filed a federal income tax return since 1995.

For years 1985 thru 1990 and 1996-1997, his unpaid tax liability exceeds $800,000. --page 3 of the Complaint.

He charges $300/hour for his "services." (p. 5, Complaint)

The complaint names a few specific customers, such as the late Richard Simkanin. (p. 12, Complaint).

EDIT: The case is United States v. Champion, case no. 2:11-cv-01175-DDP -SS, U.S. District Court for the Central District of California (Western Division, Los Angeles).

The Complaint was filed on February 8, 2011.

[Joey Smith]

He needs a BOP number ASAP.

[wserra]

If he hasn't filed since 1995, with all the other shit he's done, Champion needed a BOP number a while ago.

It's enough to make me write my congressman.

[LPC]

Injunction? Did the government forget how to spell "indictment"?

[Gregg]

If he hasn't filed since 1995, with all the other sh*t he's done, Champion needed a BOP number a while ago.

It's enough to make me write my congressman.

Me too, but after the Tea Party thing, I'm not sure my congressman can read.

[Gregg]

In all fairness I have to say that my congressman is Jean Schmidt who was a hopeless dingbat long before the tea party.

Shows up a few years ago for a press conference at a gas station next to a Ford Plant (one of her districts biggest employers) to show off her new green E85 fuel Chevy SUV....brilliant!

[wserra]

In all fairness I have to say that my congressman is Jean Schmidt who was a hopeless dingbat long before the tea party.

Ah, yes, she who told John Murtha during a debate over Iraq on the floor of the House that "cowards cut and run". The same John Murtha who was a D.I. at Parris Island, left active duty in 1955, then volunteered to return to active duty in Vietnam, where he was awarded two Purple Hearts and a Bronze Star with Valor, finally retiring as a full colonel with a Distinguished Service Medal.

Where do we get morons like Schmidt?

[The Operative]

Where do we get morons like Schmidt?

Are they from the same family line as the Pauls?

[Famspear]

Injunction junction . . what's your function?

So finally the DOJesters take notice of Mr. Champion. I wonder what it took? His radio show, his book, or just the sheer length of time he's been a runaway from the federal tax plantation? Not to mention telling everyone "your a slave!"

Yes, and I seem to recall that Harvester/Nationwide/Libre/johnthetaxist used to argue, in so many words, that Peter Hendrickson must have somehow been correct in his view of the tax law, since it took the government "so long" to bring criminal charges against him. As I recall, Harvester had a hard time believing that Hendrickson would ever go back to prison. But the jury found him guilty, and he's back in prison.

Under Harvester's weird view of things, Dave Champion must really be headed for big trouble.....



EDIT: Of course, Harvester is clueless. The government has been studying Dave Champion with great interest for a long time.



EDIT: And Harvey, it's "you're a slave," not "your a slave."

[Dezcad]

EDIT: And Harvey, it's "you're a slave," not "your a slave."

I thought Harvester's mistake was that he added an "a".

He actually meant "Harvester - your slave"

[Pottapaug1938]

Injunction junction . . what's your function?

So finally the DOJesters take notice of Mr. Champion. I wonder what it took? His radio show, his book, or just the sheer length of time he's been a runaway from the federal tax plantation? Not to mention telling everyone "your a slave!"

Harvey, Harvey, Harvey... the simple fact that the feds haven't caught up with you doesn't mean that you are a successful "runaway from the federal tax plantation".

I have a fairly close family member who, some years ago, decided that he was going to "drop off the radar screen" as far as taxes were concerned. He worked for cash, and in general did everything he could to avoid getting noticed by the IRS or the tax authorities of his state. He had an older girlfriend; and if he got caught he was planning to say that he got his money from her and in any event made so little money himself that he was below the tax threshold.

Some years later, he got a chance for a good job, and took it -- and immediately began paying taxes again. He has been working productively, saving well, and paying his tax obligations with ease. He does so without complaint, feeling as Justice Holmes did that "taxes are what we pay for civilized society". If the IRS and his state tax authorities ever question him about his years "off the tax radar screen", he will tell them the story about being supported by his now-deceased girlfriend; but he will NOT try to BS the governments with idiocies like CTC-style theories, anything out of the fevered brain of Van Pelt, or anything of the sort.

[Famspear]

Harvester, like other delusional tax protesters, suffers from the misconception embodied in the phrase "if I can get away with it, it's not illegal."

In terms of federal criminal tax laws, I suspect that the majority of people known by personnel in the IRS Criminal Investigation Division to have committed a federal tax crime are never even referred for prosecution, much less actually prosecuted and convicted -- for the simple reason that the Criminal Investigation Division folks know that the Justice Department is so picky about which cases are going to be accepted for prosecution.

Harvey, as far as I know, it is still the rule that even the United States Attorney for the District where you live is not authorized, under Justice Department guidelines, to ask for an indictment on a federal tax charge without first getting approval from the Department in Washington. (Perhaps Wes, or someone else here with far more knowledge than I have on this subject, can confirm or correct me on this.)

According to the last statistics I saw, only about half of those individuals recommended by the IRS for prosecution are actually accepted by the Justice Department. Of the the half that are prosecuted, though, the conviction rate is above 80%.

And of those convicted, almost all serve prison time. A few years ago I checked on federal tax convictions in the Houston area. In the year involved, I think there were 22 people convicted, of which 21 went to prison.

[Joey Smith]

Wonder how quickly Dave will give up his client list this time?

[Noah]

I have a PDF of the complaint, if anyone wants to make it available.

Is a copy of the complaint available anywhere yet?

[Nikki]

Wonder how quickly Dave will give up his client list this time?

He already did. No bargaining power anymore.

[wserra]

Is a copy of the complaint available anywhere yet?

Sure. It's lengthy.

[ASITStands]

Is a copy of the complaint available anywhere yet?

Sure. It's lengthy.

Thanks, Wes. I wanted to read it but didn't want to spend the money to download it.

It's a very interesting summary of Champion's theories, and it shows how the government "takes down" a guru piece-by-piece by first bringing an injunctive action, then once criminal investigation completes against his use of trusts, etc., bringing a grand jury indictment.

I'd suspect criminal charges within a year after the injunction is in place.

[Noah]

Is a copy of the complaint available anywhere yet?

Sure. It's lengthy.

Thanks