Waller apparently first learned about tax-defier strategies from the infamous Irwin Schiff. Later he was involved with Peymon Mottahedeh's Freedom Law Scheool, which apparently provided a legal strategy. (Larry Becraft also entered an appearance.)Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Friday, October 11, 2019
Nevada Real Estate Broker Sentenced to Prison for Tax Fraud
Did Not File Tax Returns for Nearly Two Decades
William Waller Jr., a Las Vegas real estate broker and the owner of Burbank Holdings or Platinum Properties, was sentenced today to 78 months in prison for tax evasion and willful failure to file tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Tax Division and U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
“The vast majority of Americans work hard to file honest tax returns and pay their fair share of taxes every year,” said Principal Deputy Assistant Attorney General Zuckerman. “Those who willfully evade taxes with false claims that the tax laws do not apply to them will be prosecuted and risk imprisonment, like William Waller’s sentence today.”
“Paying your taxes is not a choice, hiding your income in shell companies is not an option, and lying about those practices will not be tolerated as demonstrated by today’s sentencing,” said Chief Don Fort, IRS Criminal Investigation.
According to court pleadings and evidence presented at trial, Waller sought to evade taxes by incorporating a shell entity, opening bank accounts in its name, and directing his income into those accounts rather than accounts in his own name. He also dealt extensively in cash and reduced his equity in his home, the only asset he held in his own name, thereby making it an unattractive asset for the IRS to seize.
Waller testified at trial that he believed that he was not required to file tax returns or pay taxes, but acknowledged that he was influenced by the teachings of several prominent tax defiers. These included one who had been convicted three times of tax fraud, and another who had been stripped of his CPA license. Waller also admitted to purchasing and watching tax defier courses, including one on how to beat criminal tax charges. Following the defendant’s testimony and the conclusion of the trial, the jury returned guilty verdicts on March 18, 2019.
In addition to the term of imprisonment, U.S. District Court Judge James C. Mahan also ordered Waller to pay $1,459,535.70 in restitution to the IRS and serve three years of supervised release.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Christopher Magnani and Michael Landman of the Tax Division, who prosecuted the case, and Paralegal Specialist Saundra Burgess of the Tax Division, who assisted at trial.
Topic(s): Financial Fraud Tax
Component(s): Tax Division. USAO - Nevada
Press Release Number: 19-1097
From the government's sentencing memo filed on October 4, 2019:
Waller’s open defiance of U.S. law persists to this day. Prior to trial, Waller joined a “membership” that provided him access to legal counsel that would assist him in putting on a “willfulness” defense in order to obtain, in his words, a “victory.”1 At trial, he enjoyed the support of Peymon Mottahedeh, the President of Freedom Law School, a “school” that sells a “course” on how to mount a “willfulness” defense in tax cases–a course that Waller admitted to watching himself. See Excerpt of Freedom Law School Online Catalogue, Exhibit EE.
Note 1: Recordings obtained post-verdict between Waller and Peymon Mottahedeh confirm Waller’s involvement in a “program” or “membership” whereby “the fund” pays the legal fees associated with his defense, both in criminal litigation and related civil litigation. See 4/24/19 12:36:09 Recording at 03:45-04:45, 06:02-6:20, 07:20-9:11, Exhibit U. These facts provided further evidence that Waller’s defense was born out of Freedom Law School’s agenda rather than his truly held beliefs.
