nited States Attorney 'ANDRA R. BROWN Assistant United States Attorney Chief, Tax Division DARWIN THOMAS (SBN 80745) Assistant United States Attorney 'S'P Federal Building, Room 7211 <.} .... ~ 7 300 North Los Angeles Street Los Angeles, California 90012 8 Tel: (213) 894-2740; Fax: (213) 894-0115 9 Email: darwin.thomas@usdoj.gov BRIAN H. CORCORAN (DC Bar No. 456976) 10 Trial Attorney, Tax Division 11 U.S. Department of Justice Post Office Box 7238 12 Washington, D.C. 20044 13 Tel: (202) 353-7421; Fax (202) 514-6770 14 Email: Brian.H.Corcoran@usdoj .gov 15 Attorneys for the United States of America 16 17 18 19 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA WESTERN DIVISION 20 United States of America, 21 ' 22 Plaintiff, vs. COMPLAINT FOR PERMANENT INJUNCTION AND OTHER RELIEF 23 Kenneth Elliott d/b/a KAE Insurance Service~ Inc., Vista Barranca, Inc., 24 and KA~ Consulting· Sea Nine Associates, Inc., and Ramesh Sarva,
We can help you deal with: audits, appeals and Tax Court issues involving 419 Plan deductions and the taxation of withdrawals listed transaction issues including filing Form 8886 and fighting the section 6707A penalties Picture Some of the 419 Welfare Benefit Plans that have attracted attention of the IRS (rightly or wrongly) and others lately and over the past several years are: NOVA Benefit Plans (run by Dan Carpenter, Wayne Bursey, Guy Neumann, Kathy Kehoe, Joe Castagno and others), including: the SADI Plan, the Grist Mill Plan, Life One, among others Benistar Plans (also run by Dan Carpenter, Wayne Bursey, Guy Neumann, Kathy Kehoe, Joe Castagno and others) Greater Metropolitan Niche Marketing Millenium Plans CJA & Associates (run by Raymond Ankner Sea Nine VEBA Compass Welfare Benefit Plan Sunderlage Resource Group/SRG International (run by Tracy Sunderlage, among others)
Subscribers Facebook Twitter Follow Me on Pinterest HOME ABOUT US SEARCH COLUMNS ENVIRONMENTAL DARKROOM ALMANAC ENTERTAINMENT SECURITIES APPELLATE MASTHEAD Courthouse News Service Courthouse News Service Courthouse News Service Friday, July 11, 2014Last Update: 8:02 AM PT RICO Complaint Against AIG Tax Scheme By MATT REYNOLDS ShareThis LOS ANGELES (CN) - American General Life Insurance urged dozens of small business owners to buy voluntary employee beneficiary association plans, or VEBA plans, that the Internal Revenue Service has ruled are "illegal tax avoidance schemes," businesses claim in a federal class action. Lead plaintiff Ulti-Mate Connectors sued American General Life Insurance (AIG) and nine other defendants on Wednesday, alleging RICO violations, fraud, unfair competition, false advertising, aiding and abetting and other counts. According to Ulti-Mate, for more than a decade AIG has offered unlawful VEBA plans, which it calls "specialized whole life insurance policies." A high-level AIG executive allegedly told the plaintiffs' financial planner that the plans allow small business owners to make tax-deductible payments, and that they could dip into the plans, tax-free. When the financial planner inquired about the legality of plans, the planner was assured the program was aboveboard, the complaint states. "The problem is that the Internal Revenue Service (IRS) has repeatedly ruled that VEBA plans like the ones defendants established, promoted and administered do not comply with federal tax law, determinations that have been consistently upheld by federal courts. At all relevant times, defendants were well aware of the non-compliant nature of their programs," the lawsuit states. As early as 2001, the IRS informed AIG that the programs were illegal, Ulti-Mate claims, but it and the other defendants continued to offer the program.
nited States Attorney
ReplyDelete'ANDRA R. BROWN
Assistant United States Attorney
Chief, Tax Division
DARWIN THOMAS (SBN 80745)
Assistant United States Attorney
'S'P Federal Building, Room 7211 <.} .... ~ 7 300 North Los Angeles Street
Los Angeles, California 90012
8 Tel: (213) 894-2740; Fax: (213) 894-0115
9 Email: darwin.thomas@usdoj.gov
BRIAN H. CORCORAN (DC Bar No. 456976)
10 Trial Attorney, Tax Division
11 U.S. Department of Justice
Post Office Box 7238
12 Washington, D.C. 20044
13 Tel: (202) 353-7421; Fax (202) 514-6770
14 Email: Brian.H.Corcoran@usdoj .gov
15 Attorneys for the United States of America
16
17
18
19
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
WESTERN DIVISION
20 United States of America,
21
' 22
Plaintiff,
vs.
COMPLAINT FOR PERMANENT
INJUNCTION AND OTHER
RELIEF
23 Kenneth Elliott d/b/a KAE Insurance Service~ Inc., Vista Barranca, Inc.,
24 and KA~ Consulting· Sea Nine
Associates, Inc., and Ramesh Sarva,
ReplyDeleteWe can help you deal with:
audits, appeals and Tax Court
issues involving 419 Plan deductions and the taxation of withdrawals
listed transaction issues including filing Form 8886 and fighting the section 6707A penalties
Picture
Some of the 419 Welfare Benefit Plans that have attracted attention of the IRS (rightly or wrongly) and others lately and over the past several years are:
NOVA Benefit Plans (run by Dan Carpenter, Wayne Bursey, Guy Neumann, Kathy Kehoe, Joe Castagno and others), including: the SADI Plan, the Grist Mill Plan, Life One, among others
Benistar Plans (also run by Dan Carpenter, Wayne Bursey, Guy Neumann, Kathy Kehoe, Joe Castagno and others)
Greater Metropolitan
Niche Marketing
Millenium Plans
CJA & Associates (run by Raymond Ankner
Sea Nine VEBA
Compass Welfare Benefit Plan
Sunderlage Resource Group/SRG International (run by Tracy Sunderlage, among others)
Subscribers
ReplyDeleteFacebook Twitter Follow Me on Pinterest
HOME ABOUT US SEARCH COLUMNS ENVIRONMENTAL DARKROOM ALMANAC ENTERTAINMENT SECURITIES APPELLATE MASTHEAD
Courthouse News Service Courthouse News Service Courthouse News Service Friday, July 11, 2014Last Update: 8:02 AM PT
RICO Complaint Against AIG Tax Scheme
By MATT REYNOLDS
ShareThis
LOS ANGELES (CN) - American General Life Insurance urged dozens of small business owners to buy voluntary employee beneficiary association plans, or VEBA plans, that the Internal Revenue Service has ruled are "illegal tax avoidance schemes," businesses claim in a federal class action.
Lead plaintiff Ulti-Mate Connectors sued American General Life Insurance (AIG) and nine other defendants on Wednesday, alleging RICO violations, fraud, unfair competition, false advertising, aiding and abetting and other counts.
According to Ulti-Mate, for more than a decade AIG has offered unlawful VEBA plans, which it calls "specialized whole life insurance policies."
A high-level AIG executive allegedly told the plaintiffs' financial planner that the plans allow small business owners to make tax-deductible payments, and that they could dip into the plans, tax-free. When the financial planner inquired about the legality of plans, the planner was assured the program was aboveboard, the complaint states.
"The problem is that the Internal Revenue Service (IRS) has repeatedly ruled that VEBA plans like the ones defendants established, promoted and administered do not comply with federal tax law, determinations that have been consistently upheld by federal courts. At all relevant times, defendants were well aware of the non-compliant nature of their programs," the lawsuit states.
As early as 2001, the IRS informed AIG that the programs were illegal, Ulti-Mate claims, but it and the other defendants continued to offer the program.