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Fraud > Multi-Level
Marketing > EXHIBIT:
Global Prosperity Group > Principal
|FOR IMMEDIATE RELEASE
THURSDAY, APRIL 12, 2005
TDD (202) 514-1888
"GLOBAL PROSPERITY" PRINCIPAL CONVICTED
OF TAX FRAUD
WASHINGTON, D.C.-Eileen J. O'Connor, Assistant Attorney General for the Tax
Division, U.S. Department of Justice, John McKay, U.S. Attorney for the Western
District of Washington, and Nancy Jardini, Chief, Internal Revenue (IRS) Service
Criminal Investigation Division, announced today that at the federal courthouse
in Seattle, Washington, Dwayne Robare pled guilty to superseding information
charging him with income tax evasion for the 2000 tax year.
On May 12, 2004, Mr. Robare was indicted-along with alleged Institute of Global
Prosperity founders Daniel Anderson, David Struckman, Lorenzo ("Zo")
Lamantia (also known as "Lorenzo Milano"), and Kuldip Singh-on a
charge of conspiracy to defraud the United States by impeding the IRS. Mr.
Robare faces a maximum potential sentence of five years in jail, followed by
up to three years of supervised release, $250,000 in fines, and liability for
the costs of prosecution.
"People who move money into domestic or foreign trusts to evade taxes
risk criminal prosecution and jail," said Assistant Attorney General O'Connor." And
in the end, they will still owe the taxes, with interest and penalties added."
"The government will not tolerate abusive tax schemes that promote the
use of offshore accounts to illegally escape taxes," said Chief Jardini. "Those
Americans who file accurate, honest and timely returns can be assured that
the government will hold accountable those who don't."
The information alleges that Mr. Robare, age 43, of Leominster, Massachusetts,
became affiliated with the Institute of Global Prosperity (IGP) in 1997 and
for several years thereafter operated and maintained its teleconferencing system
located in Marlboro, Massachusetts. IGP members subscribed to the teleconferencing
services by remitting fees to a nominee entity named Independent Diversity
Entrepreneurs and Associates (IDEA). Mr. Robare was a partner of IDEA and shared
in the profits generated from fees paid to IDEA from 1997 through 2002.
In a statement of facts provided to the court, Mr. Robare admitted to receiving
income from his work with IGP from approximately 1997 through 2002. Mr. Robare
admitted that he used various means to conceal his income from the IRS. This
included a false trust with a domestic bank account which he obtained from
Innovative Financial Consultants in Arizona and an offshore trust and foreign
bank account which he obtained from Prosper International League Limited in
the Bahamas. Mr. Robare admitted that the resulting tax loss totaled between
$120,000 and $200,000. Mr. Robare agreed to cooperate fully with the IRS in
the ascertainment, computation, and payment of his correct federal and state
income tax liabilities.
Assistant Attorney General O'Connor thanked Tax Division Trial Attorneys Larry
Wszalek and Mark Odulio, who prosecuted the case. She also thanked the special
agents of the IRS whose assistance was essential to the successful investigation
and prosecution of the case.
In July 2004, IGP founder Daniel Andersen pled guilty to a tax charge stemming
from a conspiracy to defraud the United States and awaits sentencing. The remaining
defendants are awaiting trial. The charges contained in the indictment are
only allegations. In the American justice system, a person is presumed innocent
unless and until he or she is proven guilty in a court of law.
Additional information about the Justice Department's Tax Division and its
enforcement efforts may be found at www.usdoj.gov/tax.