Lying Cheating and Stealing

[Joey Smith]

NEWS RELEASE

KAREN L. LOEFFLER
UNITED STATES ATTORNEY
DISTRICT OF ALASKA


Federal Building & U.S. Courthouse • 222 W. 7th Avenue • Room 253 • Anchorage, AK 99513 • (907) 271-5071


FOR IMMEDIATE RELEASE 09-094
Friday, October 16, 2009


ANCHORAGE MAN AND WIFE SENTENCED IN FEDERAL COURT
FOR THEIR CONVICTIONS OF CONSPIRACY TO DEFRAUD THE IRS

Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today, October 16, 2009, that Eugene and Lorna Warner, residents of Anchorage, Alaska, were sentenced in federal court in Anchorage for their convictions of conspiracy to defraud the Internal Revenue Service.

Chief United States District Court Judge Ralph R. Beistline imposed the sentences. Eugene Warner, 66, was sentenced to 37 months in prison, 3 years of supervised release and fined $15,000. Lorna Warner, 67, was sentenced to 5 years probation, including 10 months of home confinement, and fined $8,000. Both defendants were ordered to file accurate tax returns from 1991, through present, make a good faith attempt to pay all back taxes, interest, and penalties to IRS, and comply with the tax laws.

According to information presented to the court by Assistant United States Attorneys Tom Bradley and Crandon Randell, the defendants were charged in a 37-count indictment with conspiracy to defraud the IRS, obstruction of the IRS, filing false tax returns, mail fraud, and making false claims against the United States. Mr. Warner was also charged with bankruptcy fraud. On July 30, 2009, both defendants entered guilty pleas to the charge of conspiring to defraud the United States. Both defendants were previously convicted in 1997, of obstructing the IRS and sentenced to 18-month prison terms.

According to the indictment, the defendants engaged in a course of conduct intended to evade the payment of lawful debts, conceal assets from creditors, and obstruct collection activities by those creditors. The defendants attempted to evade these debts by concealing assets in nominee entities, so that their names did not appear as the owners of the property. They then failed to disclose his ownership of the property in documents filed with the United States District Court, the United States Bankruptcy Court, and the Internal Revenue Service. When creditors continued to pursue collection of the debts, the defendants made economic threats against the creditors, and mailed them fictitious documents which both falsely claimed that the debts were eliminated and demanded that the creditors send the defendants money. They were also accused of mailing worthless “International Bills of Exchange” to the IRS and other creditors in an unsuccessful attempt to pay off their debts.


In their plea agreement and in open court, the Warners admitted that, as a part of the conspiracy, they both made false statements to the IRS about his assets, omitting real property and bank accounts held in the name of bogus nominee “trusts.” They also admitted sending to the IRS a sworn “commercial affidavit” that falsely claimed that the IRS owed them $1.5 million. Mr. Warner further admitted that he testified falsely before the U.S. Bankruptcy Court about his assets in a 2003 hearing.

Prior to imposing sentence, Judge Beistline stated that “lying, cheating and stealing” would not get criminals “anywhere but prison,” and Judge Beistline described the defendants’ defiance of the tax laws over the past 15 years as “bizarre and disgusting behavior,” and expressed disbelief that the defendants, former public school teachers, would act as they did for so long, even after being convicted the first time of a felony tax crime.

Mrs. Warner stated that she followed her husband’s advice in tax matters. Mr. Warner said that he realized his prior beliefs about the tax laws were wrong and had been rejected by the courts, and stated that he deserved “a harsh sentence” for his actions.

Ms. Loeffler commended the Internal Revenue Service–Criminal Investigation for the investigation leading to the successful prosecution of the Warners.

###

[Famspear]

Maybe Pete Hendrickson will tout this as another "victory" for his own Cracking the Code tax scam.

[Judge Roy Bean]

Even after serving 18 months they decided to try again.

[ASITStands]

Maybe Pete Hendrickson will tout this as another "victory" for his own Cracking the Code tax scam.

Why do you think any of their behavior had anything to do with Pete Hendrickson?

This is not a 'Cracking the Code' case from what's said herein. It's a combination of commercial affidavit and bills of exchange with a whole lot of obstruction thrown in.

Nothing they've done would have been posted on Hendrickson's 'victory' page.

[Famspear]

Maybe Pete Hendrickson will tout this as another "victory" for his own Cracking the Code tax scam.

Why do you think any of their behavior had anything to do with Pete Hendrickson?

This is not a 'Cracking the Code' case from what's said herein. It's a combination of commercial affidavit and bills of exchange with a whole lot of obstruction thrown in.

Nothing they've done would have been posted on Hendrickson's 'victory' page.

Hendrickson has previously touted Warner as one of Hendrickson's victorious followers. (It is, however, questionable as to whether Warner has actually used CtC.)

EDIT:

On his lost horizons web site, Hendrickson has touted the case of Eugene George Warner of Alaska as an example of an individual who has been victorious using Hendrickson’s Cracking the Code, in particular with respect to Form 1040 tax returns for various years, including 1991 and 2001. Warner, an ex-con who has previously served time in federal prison, was indicted by a federal grand jury on twelve counts of mail fraud, two counts of bankruptcy fraud, one count of tax evasion (involving the tax year 1991, among others), one count of attempting to interfere with the administration of the internal revenue laws, and four counts of filing false tax returns (including the returns for years 1991 and 2001, per counts 3 and 5 of the First Superseding Indictment). See United States v. Eugene George Warner, case no. 3:07-cr-00123-RRB-JDR, U.S. District Court for the District of Alaska (Anchorage Division). Curiously, while Hendrickson has displayed various IRS notices issued to Warner as examples of evidence of Cracking the Code victories for Warner for 1991 and 2001, it is not clear that Warner actually used Hendrickson’s method for those years. Warner pleaded guilty to one count in the indictment in exchange for dismissal of the other charges, and was sentenced to 37 months in prison.

from Dan's web site:
http://tpgurus.wikidot.com/peter-hendrickson

[ASITStands]

While I see your explanation (and accept it), nothing here speaks of 'Cracking the Code.'

I think Dan's last statement is closer to the truth than anything.

Curiously, while Hendrickson has displayed various IRS notices issued to Warner as examples of evidence of Cracking the Code victories for Warner for 1991 and 2001, it is not clear that Warner actually used Hendrickson’s method for those years.

[Demosthenes]

http://www.losthorizons.com/tax/MoreVictories12.htm

Hendrickson posted Eugene Warner as a "victory." Do you have some reason to believe Warner lied to Hendrickson?

[Quixote]

http://www.losthorizons.com/tax/MoreVictories12.htm

Hendrickson posted Eugene Warner as a "victory." Do you have some reason to believe Warner lied to Hendrickson?

His lips were moving? Actually, I doubt Pete asked. One image Pete posted as a CTC victory was almost certainly Doreen's 2006 telephone excise tax rebate.

[notorial dissent]

I’m shocked I tell you, shocked. The thought that Petey the magnificent would lie about something, why it is unthinkable.

[Famspear]

While I see your explanation (and accept it), nothing here speaks of 'Cracking the Code.'

I think Dan's last statement is closer to the truth than anything.

Curiously, while Hendrickson has displayed various IRS notices issued to Warner as examples of evidence of Cracking the Code victories for Warner for 1991 and 2001, it is not clear that Warner actually used Hendrickson’s method for those years.

Actually, it's my statement. I wrote the section on Warner at Dan's web site. I think you're laboring under the misconception that I personally think Warner's behavior had something to do with Cracking the Code. It's Pete who is making that claim, not me.

[ASITStands]

Actually, it's my statement. I wrote the section on Warner at Dan's web site. I think you're laboring under the misconception that I personally think Warner's behavior had something to do with Cracking the Code. It's Pete who is making that claim, not me.

Ok.

http://www.losthorizons.com/tax/MoreVictories12.htm
Hendrickson posted Eugene Warner as a "victory." Do you have some reason to believe Warner lied to Hendrickson?

Posting several CP-49 Notice(s) does not mean they were 'Cracking the Code' victories.

It's beginning to appear to me that either Pete didn't check into the actual filings, Warner lied (if he said anything when he submitted them to Pete) or Pete lied (knowing the truth).

Those CP-49 Notice(s) could very well have resulted from the kinds of things mentioned.

....

According to information presented to the court by Assistant United States Attorneys Tom Bradley and Crandon Randell, the defendants were charged in a 37-count indictment ...

Has anyone actually looked at the indictment to see if it alleges anything close to 'Cracking the Code?' I have. Not one thing having to do with Pete's methodology or theory.

... with conspiracy to defraud the IRS, obstruction of the IRS, filing false tax returns, mail fraud, and making false claims against the United States. Mr. Warner was also charged with bankruptcy fraud.

According to the indictment, the defendants engaged in a course of conduct intended to evade the payment of lawful debts, conceal assets from creditors, ...

Use of "common law trusts" and "pure trust organizations" and lots of conveyances.

... and obstruct collection activities by those creditors. The defendants attempted to evade these debts by concealing assets in nominee entities, so that their names did not appear as the owners of the property. They then failed to disclose his ownership of the property in documents filed with the United States District Court, the United States Bankruptcy Court, and the Internal Revenue Service. ...

The false returns had nothing to do with filing Form(s) 4852, or 'doctored' Form(s) 1099, or even "zero returns," but simply not reporting rental income on Schedule E.

... When creditors continued to pursue collection of the debts, the defendants made economic threats against the creditors, and mailed them fictitious documents which both falsely claimed that the debts were eliminated and demanded that the creditors send the defendants money. They were also accused of mailing worthless “International Bills of Exchange” to the IRS and other creditors in an unsuccessful attempt to pay off their debts.

"International Bills of Exchange" are consistent with commercial, strawman, Treasury account, birth certificate theories, later seen in the Commercial Affidavit of Truth.

In their plea agreement and in open court, the Warners admitted that, as a part of the conspiracy, they both made false statements to the IRS about his assets, omitting real property and bank accounts held in the name of bogus nominee “trusts.” They also admitted sending to the IRS a sworn “commercial affidavit” that falsely claimed that the IRS owed them $1.5 million. Mr. Warner further admitted that he testified falsely before the U.S. Bankruptcy Court about his assets in a 2003 hearing.

Nothing here about 'Cracking the Code' or Pete Hendrickson.