Other links to Global Prosperity Australian 2-ups (Australian two-up) and other scams




I.R.S. Steps Up Tax-Evasion Raids

The New York Times/March 6, 2001
By David Cay Johnston

The Internal Revenue Service said yesterday that it conducted its most extensive raids ever last week, pursuing suspected promoters of tax evasion schemes for affluent people. The I.R.S. says that the promoters used foreign banks and trusts to help people hide their income and create fake deductions.

Commissioner Charles O. Rossotti said more than three dozen searches were conducted and four arrests made as the I.R.S. deployed about 300 of its 2,700 criminal tax investigators on such cases.  Among the targets were the Institute of Global Prosperity, which operates on the Internet and promotes what the government says are a variety of fraudulent tax and investment schemes.

Also under investigation is Jerome Schneider, the author of books on moving money offshore to reduce or eliminate taxes. His California marketing office, as well as records of his lawyer in Los Angeles, Eric Witmeyer, were raided.

Also raided were the sales and administrative offices of Anderson's Ark, which sells what the government calls sham trusts for tax evaders, out of Costa Rica and the state of Washington.

Mr. Rossotti said that "last week's historic enforcement activities send an unmistakable signal about I.R.S. commitment to pursue investigations of promoters and their clients who would try to move money offshore to evade taxes."  Since the appointment of Mark E. Matthews as head of the I.R.S. criminal investigation division in late 1999, the division has focused on promoters of sham trusts and offshore banking. Americans are taxed on their worldwide income, and the I.R.S. says that the promoters used foreign banks and trusts to help people hide their income and create fake deductions.  The I.R.S. is expected to seek indictments of the promoters. Investors in such schemes are often offered deals to inform on the promoters and are pursued civilly for taxes, interest and penalties.

Those arrested, all of whom are affiliated with Anderson's Ark, were identified by the government as Wayne Anderson, 55, of Squaw Valley, Calif., and Richard Marks, 57, of Los Osos, Calif., who were charged with tax evasion and money laundering; and Richard Castellini, 55, of Bridgeton, N.J., and Michael Gonet, 49, of Stow, Mass., who were charged as accessories for reportedly referring clients.

Keith Anderson, 59, of Santa Ana, Costa Rica, the founder of Anderson's Ark, said he and those arrested had done nothing wrong and would be vindicated if tried. Mr. Anderson, who is a federal fugitive, spoke by telephone from a location that he declined to specify.  He said that "the criminal government of the United States" has deceived people into believing that the income tax laws were properly enacted when in his view they are illegal. He said that for 21 years his "free enterprise organization" has been helping Americans create "what the government likes to call trusts because that sounds like a big deal, but these are just contracts between two parties that help them build wealth" in ways that he said are not taxable.

Mr. Schneider has written books including "The Complete Guide to Offshore Money Havens" and "How to Own Your Own Private International Bank," both published by his own company in California.

Harland Braun, a Los Angeles criminal defense lawyer who said Mr. Schneider hired him after the raid, said his client had not violated any law and only promoted the lawful use of offshore banks. Mr. Braun said that Mr. Schneider suspected that the undercover I.R.S. agents mentioned in the affidavit supporting the search warrant were tax evaders and, as a law-abiding citizen, turned them in to the authorities. Mr. Schneider's seminars, held in Vancouver, British Columbia, and on tropical islands, attract wealthy Americans. According to the affidavit, Mr. Schneider sold private banks on Nauru, an island in the Pacific Ocean, as a way to hide income and create fake tax deductions.

To hide income, a client would funnel unreported income to his bank on Nauru. Investments would grow unseen by the I.R.S. The bank would also issue mortgages against homes in the United States, which would allow a tax evader to take a mortgage interest deduction for money he paid to himself through the bank.

The I.R.S. said clients were advised to slowly reduce the income they reported to the I.R.S., a technique that the tax agency said would not be detected by its computers when they search for patterns of tax fraud in the data taken from income tax returns. Mr. Witmeyer, the Los Angeles lawyer whom the I.R.S. characterized as an accomplice of Mr. Schneider, did not return a call requesting an interview.

Officials and associates of the Institute of Global Prosperity did not respond to an e-mail request and no listed telephone numbers could be found for the promoters named in the search warrant.

Mr. Schneider also runs seminars that feature well-known guest lecturers. Among the speakers were Representative Billy Tauzin, Republican of Louisiana; Oliver L. North, the radio talk show host and retired Marine colonel; and Nadine Strossen, president of the American Civil Liberties Union.

A spokesman for Mr. Tauzin, Ken Johnson, said Mr. Tauzin spoke at a Vancouver seminar in June 1999 in hopes of winning wealthy Americans over to his plan for a national retail sales tax to replace the income tax. "The congressman believes that if we had a retail sales tax, there would be no need for wealthy people to hide their money overseas," Mr. Johnson said.
Soon after arriving at the seminar, Mr. Johnson said, he concluded that a mistake had been made and that the event struck him as devoted to investment schemes and tax evasion. He said that Mr. Schneider had tried to persuade Mr. Tauzin to engage in one-on-one talks with individuals "and that's when I grabbed Billy's arm and got him out of there."  Mrs. Strossen and a spokesman for Mr. North, Tom Kilgannon, said that the appearances involved speeches unrelated to taxes and that neither guest had any idea that Mr. Schneider was suspected of promoting tax evasion.

For More of David Clay Johnston's  Very Excellent Investigative Reporting: GO TO NEW YORK TIMES (www.nytimes.com)
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GLOBAL PROSPERITY PYRAMID SCHEME

PYRAMID SCHEME MONEY MAVEN

TO BE SENTENCED

EDITORS NOTE: The Global Prosperity Group of Pyramid Schemes were the worst in U.S. history. These Pyramid Schemes specialized in teaching tax evasion and got innocent Pyramid Participants jail sentences. Some lost their houses, life savings and even their lives in this Pyramid Scheme. Thank heavens that they did not claim the Pyramid Scheme was an MLM program. They used the scummy Aussie 2 Up plan that is a pure pyramid plan in that it steals the first two participants in the pyramid scam from unwitting participants.

FOR IMMEDIATE RELEASE TAX
TUESDAY, JUNE 3, 2003 (202) 514-2007
WWW.USDOJ.GOV TDD(202) 514-1888

JURY CONVICTS INSTITUTE OF GLOBAL PROSPERITY PARTICIPANT
OF CONSPIRACY TO STRUCTURE CURRENCY TRANSACTIONS


WASHINGTON, D.C. – Assistant Attorney General Eileen J. O’Connor of the Tax Division announced that a federal jury in Seattle returned a guilty verdict against Laura Jean Marie Struckman, a participant in the Institute of Global Prosperity (IGP). She was convicted of conspiracy to structure a financial transaction.

(Ed. Note: Primary Action in prosecuting Pyramid Scheme)
Trial evidence showed that Struckman, formerly of Renton, Wash., and an unindicted co-conspirator engaged in a 14-month conspiracy from June 1997 through August 1998 to evade currency reporting requirements by making cash withdrawals of over $960,000 in 122 separate transactions, none of which exceeded $10,000. The evidence further established that Struckman was the co-signer on three nominee bank accounts, opened at the U.S. Bank of Washington, into which she and another individual deposited over $3.7 million, earned from IGP, during the time period of the conspiracy.


Struckman faces a maximum statutory penalty of five years imprisonment and a $250,000 fine. She is scheduled to be sentenced by the Chief U.S. District Judge John C. Coughenour Aug. 8, 2003.

(Ed. Note: Secondary Actions in prosecuting Pyramid Scheme)
In other cases related to IGP, Jeffrey and Shoshana Szuch and Margo Jordan all pleaded guilty to using foreign bank accounts to commit tax evasion. According to indictments in those cases, the government showed that IGP was an organization that hosted offshore seminars for promoters of abusive trusts and anti-tax schemes. IGP was also known by other names, including Global Prosperity Marketing Group (GPMG) and Global Prosperity Group (GPG). Members of IGP marketed and sold various IGP products, including an "education course" named "Global 1" priced at $1,250; a ticket to a three-day offshore seminar named "Global 2" priced at $6,250; and a ticket to a five-day offshore seminar named "Global 3" priced at $18,750. The indictments alleged that the Global 2 and Global 3 seminars brought together portions of the IGP membership to hear, among other things, presentations by individuals and organizations involved in the sale and operation of foreign trusts designed in part to conceal income from the Internal Revenue Service.

Ed. Note: As you can see this illegal Pyramid Scheme rolled some serious money out of the pockets of suckers who wanted to believe taxation was not legal. On top of that the Pyramid Scheme operators scammed life savings investment money right and left from Pyramid Scheme participants who believed their 10% returns (a month) were real.


The Struckman case was investigated by agents of IRS Criminal Investigation. It was prosecuted by Tax Division trial attorneys Mark T. Odulio and Christopher J. Maietta.


More Pyramid Schemes + Global Prosperity
MLM WATCHDOG
MAGAZINE AND SCAM  REPORTS
Global Prosperity Tax Scam Update!
Australian Two Up Scams


ROUND 2: FEDS INDICT MORE GLOBAL PROSPERITY RINGLEADERS

17 May 2003 – Justice is slow.  I started on these Global Prosperity Scum bag crooks back in 1997.  They sold harmful information supporting NOT PAYING TAXES!  They hit innocents with an Aussie 2 up (scam sign #1) on buying a $1200 package on how to not pay taxes.   Earlier this year Darryl Struckman's wife and others went to jail.  No doubt in their sentence plea bargaining they gave up these guys just indicted.

INFORMATION AND MONEY SCAM
Global then sold seminars (Aussie 2up) for varying amounts such as #1 % 5,000, #2 $12,000, #3 $30,000 to innocent suckers.  They also pushed an investment scam of $100,000 for “ARBITRAGE” to double your money.  One little failing on the ARBITRAGE” $100,000 deal!  The best anyone ever got back was 3%.   That means the if you put in a $100k the best was $3,000 back.  The other $97,000 was a “Whoops” we lost your $97,000.  We told you it was high risk here is $3000 back!  Several innocent distributors for Global went to jail……… for tax evasion caused by just believing the B.s.

MURDERS
Needless to say Global created a big collection of people ripped off.  Some committed suicide, three of those were reported to me.  As far as I am concerned the Federal Indictments should include involuntary manslaughter too.  I worked with the Boston Globe, New York times and Dateline to get the news out on the worst of the worst of  Aussie 2up scamsters who claimed they were not MLM (Thank God)……….even if the Aussie 2up is (13 states define inducing another into opportunity is an MLM program).   The FBI had a “handler” assigned to me, he would call occasionally asking if I had heard where the Global Prosperity people were.    We still have one missing and the Feds are  still looking for him.  Everything on this page would have moved faster if not for 9-11!

SUMMARY WARNING! THERE ARE BABY VERSIONS OF GLOBAL OUT THERE NOW
There are still several Aussie 2ups out there selling over priced information.  It is best to stay away from them because I think some are riding of the shoulders of ex-global sales people.  Remember if it involves information and seminar selling and you have to join (buy first) to get in the game you are usually breaking several laws (business op laws over $500) chain selling etc.  Remember they have a long history of Commonwealth, Delphin (Russ Von Lin in jail now), Investors International and others.   Take a hard look at people selling information today about secrets of making money for $1200 - $1500 plus more and more expensive $5000 seminars to follow.   Reality is you could buy a complete BIG library of information about SECRETS OF MAKING MONEY for $400 and know more than most of these clowns you are peeling money out to…
ELITE BUSINESS NATION NEW SCAM
http://www.mlmwatchdog.com/Report_Pinnacle_Quest.html

ILLEGAL PYRAMID SCHEME GLOBAL PROSPERITY by Rod Cook, MLM Consultant

PYRAMID SCHEMES, TAX EVASION,

AND MACHINE GUNS!

By Rod Cook

Pyramid Scheme Machine Guns and Tax Evasion: Last year, the FBI/IRS (Feb 2001) took down a tax evasion pyramid scheme core "Anderson's Ark.." What made it exciting is the Pyramid Scheme Ark was in Costa Rica! The Pyramid Scheme’s "Ark" was a large compound with armed guards (AK-74s and light belt fed machine guns) that Anderson's cult Pyramid Scheme followers bragged was impregnable. In a spy movie scenario, "men in black" scaled the Ark's wall at 3 am and took out the guards at the core of the Pyramid Scheme palace. The "Anderson" Pyramid Scheme crew disappeared! The Costa Rican Government won't say if they were involved, they deny everything, but have hinted they "cooperate" with the US government (Pyramid Schemes and Tax Evaders qualify)! Documents concerning this are sealed in Costa Rica. The U.S. Government just said they had arrest warrants for Ark members. Rumors to your editor, from the "grey operations" world of ex-special forces, ex-CIA, and other mercenaries say there were some lucrative contracts given to mercenaries in Feb 2001 for "south work." No comments on the international diplomacy involved. This was probably the hardest take down ever of a Pyramid Scheme!! Great! :>)

Quick Thumbnail Of How the illegal Pyramid Scheme Worked: The Anderson's Ark was the back office of Global Prosperity one of the worst tax evasion illegal MLM Pyramid Schemes marketing scams to hit America. These Pyramid Scheme criminals argued taxation wasn't legal and encouraged people to put their money in illegal offshore business trusts and other illegal offshore schemes disguised as trusts for tax evasion purposes. To fire up the Pyramid Scheme they also sold a junk set of tapes for $1200, they the Pyramid Scheme pulled people into a "Secrets of How The Rich Get Rich for $6000. Since the hook was set, they then pulled the poor fish to an offshore meeting for $15,000 worth of "get rich quick" illegal education. At that seminar (called the G-4) these Pyramid Scheme scammers got some people to invest $100,000 into arbitrage (phoney money trading). Some of the people got a 3% return. NO they did not get $103,000 back.... what we mean they got $3,000 out of $100,000 back! Some people committed suicide, many lost thier homes and some innocent folks went to jail and others are under investigation for tax fraud. ED. Note: The Global Prosperity and Ark Crew are murders as far as the MLM WatchDog is concerned. Your editor helped put together an investigative episode on 48 hours about Global Properity’s Pyramid Scheme + Anderson's Ark with their Internet and mail fraud. We also helped the Boston Globe do an expose to get the government to move on these murdering Pyramid Scheme crooks.

In Summary These MLM Illegal Pyramid Scheme crooks taught tens of 1,000's:

1. Illegal tax evasion with illegal MLM Pyramid Scheme techniques such as the "Aussie 2up Plan."

2. Suckered people into the Pyramid Scheme with "The Secrets Of How The Rich Get Rich" quickly

Let Your Editor Quickly Enlighten You On How Tax Evasion Pyramid Schemes Go Down

The CIA has billions (not millions) of dollars of super computer power in the Reagan building inside the Washington, D.C. beltway. When the Soviet Union collapsed they needed a reason to keep it running. In 1994 they got authority to track money flows in and out of the U.S. for tracking money laundering in drug lord cases (War On Drugs). In 1996 Congress gave the CIA authority to give money information to the IRS. With September 11th 2001 and the security authority given to the CIA, they can now even track inside the U.S. Your editor is has been in the military intelligence loop and "kind of" stays in the "grey gossip" ring of ex-spies. The gossip on the street today? The CIA tracks down to $1 transfers (a drug ring was using credit cards and computer program to transfer million$ - one dollar at a time)! So if you are thinking about using any kind of offshore trust for tax evasion, you are dumb as a rock! Pyramid Scheme = 2 dumb rocks! Why? You are making yourself a target! Offshore trusts are an essential part of life today and I think everyone should have one. Just make sure that you pay taxes (and don't use them for Pyramid Schemes)! It takes that CIA computer 1 millionth of a second to track your money! Then they flip the data over to the IRS computers which are slow, it takes them 50 millisconds to nail you! Did you see the movie the "Bourne Identity?" The CIA computer searches and tracking weren't fiction!

No Murder Convictions in this Pyramid Scheme - Unfortunately Just 20 Years In Jail

The following case summaries are excerpts from public record documents on file in the court records in the judicial district in which the cases were prosecuted. Several Individuals here were "nabbed out of Costa Rica with the Pyramid Scheme Global Prosperity's "Anderson's Ark" Organization. Most are Pleading Guilty and on their way to jail for Pyramid Shemes and Tax Scams. The sentences arn't complete but your Editor hopes they all get the maximum of 20 years because of the fraud and suicides of innocent people!

On May 31, 2002, in Sacramento, CA, Wayne Anderson and Richard Marks were convicted of engaging in a conspiracy to launder money and of money laundering in a case arising out of their activities as leaders of an international organization. Wayne Anderson was the second in command of Anderson's Ark & Associates, an organization based in the United States and Costa Rica, that used a network of bank accounts around the world to assist its clients in laundering funds and engaging in tax evasion. Richard Marks was the chief accountant for the organization [see U.S. Attorney's Press Release]. The defendants participated in a scheme to launder approximately $370,000 in funds for IRS undercover agents. Ed. Note Plan on 20 years + boys!

On April 29, 2002, in Sacramento, CA, Karolyn Grosnickle, who managed the administrative center for Anderson's Ark & Associates, pled guilty to laundering $60,000 [see U.S. Attorney's Press Release]. On April 22, 2002, Terri Yvonne Lewis and Steven Lyle Anderson pled guilty to conspiracy to obstruct justice by shredding documents and deleting computer files (5 years possible) to avoid revealing information on Anderson's Ark & Associates [see U.S. Attorney's Press Release]. On April 12, 2002, two guilty pleas were unsealed relating to Anderson's Ark & Associate accountants Roosevelt L. Drummer and Roy Lentz. Drummer and Lentz pled guilty in Seattle, WA, to charges of conspiring to defraud the IRS on October 16, 2001, and July 25, 2001, respectively [see U.S. Attorney's Press Release].

Ed. note: When you visit the IRS Criminal Invesigation website below, look at the investigation chart. The number of offshore tax fraud case arrests and investigations have doubled. If you remember my "brief " about the CIA above - you can bet your bottom dollar that the number of investigations are going to double - again and again! You may not be a terrorist but if you illegally transfer offshore money....... You go into a terrorist suspect database! Of course then you will be saved by being identified as a tax cheat and not a terrorist! Moral of the story is - - - stay off databases!

Extra Ed. Note: If you see scam man Daryl Struckman, the former head of Global Prosperity or fugitive Keith Anderson of Anderson's Ark, give me call and I will pass it on to my Global Prosperity FBI "handler." It would make his day! It would also save poor Daryl and Keith the stress and strain of "being on the lam." Better these scumbags spend the next hundred years relaxing in prison!

:>) Rod Cook, your editor

From the New York Times - David Cay Johnston did a good article on Global Prosperity when he was at the Boston Globe. A great journalist! Your editor supplied some informaton and leads for the Global Prosperity article in the Boston article.

New York Times - Tax Evasion Arrests

www.mlmwatchdog.com/Report_ArkNYC.html


From the IRS Their Info On This Story:

IRS CRIMINAL INVESTIGATION WEBSITE - ABUSIVE TRUSTS

http://www.ustreas.gov/irs/ci/tax_fraud/docabusivetrustschemes.htm




 

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