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John F Poseley
|FOR IMMEDIATE RELEASE
FRIDAY, DECEMBER 12, 2003
TDD (202) 514-1888
PROMOTER OF TAX EVASION SCHEME PLEADS GUILTY
WASHINGTON, D.C. - Assistant Attorney General for the Justice Department’s
Tax Division Eileen J. O’Connor, U.S. Attorney for the District of Arizona
Paul K. Charlton and Internal Revenue Service Criminal Investigation Chief
David B. Palmer, today announced that Casa Grande, Arizona resident John F.
Poseley pled guilty to his role in a conspiracy to defraud the U.S. Government
by marketing bogus trusts through an organization known as Innovative Financial
“Contrary to the assertions of tax scam promoters, you cannot magically
avoid income taxes by diverting income to a trust,” said Eileen J. O’Connor. “People
who promote or participate in such schemes are risking serious civil and criminal
The conspiracy charge alleged that from 1995 to 2003, Innovative Financial
Consultants - based in Tempe Arizona - created and sold over 3,000 bogus “onshore” and “offshore” trust
packages for financial gain by falsely claiming that taxpayers could avoid
paying income taxes by placing their income and assets into such a trust.
The defendant, who pled guilty before Judge Mary Murguia of the U.S. District
Court for the District of Arizona, worked as a salesperson for Innovative Financial
Consultants and sold offshore and onshore trust packages to taxpayers. Poseley
admitted that he had falsely represented to taxpayers that they could avoid
paying income taxes by placing assets into the trusts while retaining use,
control and dominion of those assets. Poseley further acknowledged ignoring
readily available information that flatly refuted Innovative Financial Consultants’ false
Judge Murguia scheduled sentencing for the defendant on April 26, 2004. The
defendant faces a maximum penalty of five years imprisonment and a $250,000
The Internal Revenue Service’s Criminal Investigation Division investigated
this matter. Trial attorneys Edward E. Groves, Larry J. Wszalek and Mark T.
Odulio of the Justice Department’s Tax Division prosecuted this case.
More information about the Justice Department’s Tax Division can be
found at www.usdoj.gov/tax.