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Marketing > EXHIBIT:
Global Prosperity Group > Anderson
Department of Justice
TAX MONDAY, FEBRUARY 11, 2002
Washington, D.C. The founder of a nationwide abusive tax shelter promotion
scheme was charged today with conspiring to defraud the United States by
organizing a group of accountants who used a variety of shell corporations,
trusts and partnerships to operate tax shelter schemes they sold to their
clients, the Department of Justice's Tax Division announced today.
Keith E. Anderson, founder of Anderson Ark and Associates was charged
in a criminal complaint which was unsealed today in Seattle.
Eileen J. O'Connor, Assistant Attorney General for the Justice Department's
Tax Division, said, "By encouraging people to cheat on their taxes, promoters
of tax scams defraud honest taxpayers many times over." Assistant Attorney
General O'Connor called on all taxpayers to report suspected tax fraud to the
IRS. "Tax fraud promoters are like all con artists. If their sales pitch
sounds too good to be true, it probably is not true."
The complaint alleges that from 1998 through 2001, Anderson Ark and Associates
obtained more than $30 million in illegal tax refunds for between 1,500 and
2,000 clients and received approximately $50 million in fees and other funds
from the clients.
The complaint further alleges that Anderson Ark & Associates' accountants
prepared tax returns that claimed large tax deductions for fraudulent "loans" and "consulting
expenses." In reality, the complaint alleges, the funds were not spent
as claimed, but instead were wired to Costa Rica so that Anderson Ark & Associates'
clients could later withdraw them with a debit card.
The tax charges against Anderson are in addition to an indictment returned
in the Eastern District of California on May 3, 2001, charging Anderson and
several other defendants with conspiring to commit money laundering through
Anderson, who had been a fugitive from justice, was apprehended in Costa
Rica on Saturday, February 9, 2002, and is awaiting extradition to the United
The tax fraud case is being prosecuted by Tax Division Trial Attorneys
Corey J. Smith and Krista Tongring. Additional information about tax fraud
schemes to watch out for can found on the IRS Criminal Investigation website
Date Published: 02-11-2002
Date Added to File: 02/13/2002 09:14 PM EST
Microfiche Number: Doc 2002-3810 (2 original pages)