Financial & Tax Fraud
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Quatlosers > Irwin Schiff

Quatlosers Hall of Shame

Irwin Schiff

These special-editions Quatloos commemorates those who have made a name for themselves in their particular business endeavors.

100 Q
Irwin Schiff

Keeping with the theme of our 100Q Woopoo chips, we commemorate Irwin Schiff who is perhaps the best known of the promoters of "tax protestor" literature and theories. After years of battling the IRS, Schiff is still batting .000 in his efforts to prove valid even one of his bogus theories -- although he's made a good living selling his useless B.S. in the meantime.

Even according to fellow tax scammer and Quatlooser Bill Conklin : "Number One in the Weasel 'Hall of Sham' -- oops, I mean 'Hall of Shame' -- is Irwin Schiff. If you want to know what this convicted felon's advice is worth, just consider the source."

NEW! - Schiff issues Administrative Notice Quo Warranto to various IRS personnel seeking their oaths of office and similar material

Zero-Income Filer & Schiff Acolyte Convicted of 18 Counts - Steven Swan, who for years religiously followed the teachings of Irwin Schiff until the two had a falling-out, has been convicted of 18 counts of tax-related crimes.

http://irwinschiffbs.blogspot.com -- Anti-Schiff blog that shows what a buffoon his is, and that his theories never work.

Schiff's Response to Motion to Disqualify Judge Under 28 U.S.C. 455

Temporary Restraining Order

Preliminary Injunction (PDF)

Judge Tells Tax Adviser to Stop Selling Book - NY Times Article by David Cay Johnston


DOJ

FOR IMMEDIATE RELEASE
FRIDAY, FEBRUARY 24, 2006
WWW.USDOJ.GOV
TAX
(202) 514-2007
TDD (202) 514-1888

Professional Tax Resister Sentenced to More
Than 12 Years in Prison for Tax Fraud

WASHINGTON, D.C. - Longtime tax protestor Irwin Schiff was sentenced in federal district court in Las Vegas to total of 163 months in prison—151 months for tax fraud and an additional 12 months for contempt of court—the Department of Justice and the Internal Revenue Service (IRS) announced today. In addition, Schiff was ordered to pay more than $4.2 million in restitution and to serve three years of supervised release..

In October 2005, Schiff was convicted of conspiring to defraud the United States, aiding and assisting in the preparation of false income tax returns, filing his own false tax returns, and evading the payment of millions of dollars in back taxes owed. This marks the third time Schiff has been convicted for committing federal tax offenses. Schiff previously has spent more than four years in jail for his tax crimes. Two associates of Schiff, Cynthia Neun and Lawrence Cohen, were also convicted of aiding and assisting other taxpayers in the filing of false tax returns. On February 3, 2006, Cohen was sentenced to 33 months in prison. Neun was sentenced yesterday to 68 months in prison and ordered to pay $1.1 million in restitution..

“Last October, a jury of his peers found Mr. Schiff guilty of serious tax crimes related not only to his own tax evasion, but also to his encouraging and enabling others to file false returns. The prison sentence handed down today reflects the seriousness of those crimes,” said Eileen J. O’Connor, Assistant Attorney General for the Justice Department’s Tax Division. “The Department of Justice is working vigorously to vindicate the interests of law- abiding Americans who file returns and pay the taxes the law requires.” .

“Mr. Schiff earned this sentence,” said IRS Commissioner Mark Everson. “For years he has preyed on others by holding out false hope that they need not pay their taxes.”.

According to the indictment and the evidence introduced at trial, beginning in 1995, Schiff aided thousands of taxpayers in the filing of false federal income tax returns with the IRS that reported zero taxable income in spite of the taxpayers earning reportable income. Schiff owned and operated Freedom Books, a business that sold books, tapes, and informational packages encouraging customers not to pay income tax. According to a government witness who testified at trial, between 1997 and 2002, Freedom Books sold more than $4.2 million of these products..

The evidence presented at trial also proved that Schiff evaded the payment of more than $2 million in taxes he owed the IRS from 1979 through 1985. Schiff concealed income he earned from Freedom Books, in part, by using offshore bank accounts and conducting financial transactions through secret “warehouse” banking services. The evidence also showed that Schiff used debit cards issued by offshore banks to obtain funds he transferred offshore, that he opened bank accounts using multiple tax identification numbers and that he concealed his wealth by hiding his assets through the use of nominees..

Assistant Attorney General O’Connor thanked Tax Division Trial Attorneys Jeffrey A. Neiman, David J. Ignall, and Melissa Schraibman, who prosecuted the case. She also thanked Criminal Investigation Special Agents David Holland, Adam Steiner, and Autumn Woodard of the IRS, and the U.S. Attorney’s Office for the District of Nevada, whose assistance was essential to the successful investigation and prosecution of the case..

Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at http://www.usdoj.gov/tax.

###

06-098


DOJ

FOR IMMEDIATE RELEASE
MONDAY, OCTOBER 24, 2005
WWW.USDOJ.GOV
TAX
(202) 514-2007
TDD (202) 514-1888

PROFESSIONAL TAX RESISTER IRWIN SCHIFF AND TWO ASSOCIATES CONVICTED IN LAS VEGAS TAX SCAM

WASHINGTON, D.C. - A federal jury in Las Vegas, Nevada convicted Irwin Schiff and two associates, Cynthia Neun and Lawrence Cohen, of aiding and assisting in the preparation of false income tax returns filed by other taxpayers in connection with a tax scam, and convicted Schiff and Neun of conspiring to defraud the United States, the Department of Justice and the Internal Revenue Service (IRS) announced today. Schiff was convicted on all counts, including income tax evasion and of filing false income tax returns for the years 1997 through 2002, and Neun was convicted of willfully failing to file federal income tax returns, Social Security disability fraud, and theft of government property in connection with Neun's improper receipt of Social Security disability benefits.

According to the indictment and the evidence introduced at trial, beginning in 1995, the defendants directed thousands of taxpayers to file false federal income tax returns with the IRS that reported zero taxable income in spite of the taxpayers earning large amounts of reportable income. The defendants operated the scam through Freedom Books-a business owned by Schiff-that sold books, tapes, and packets encouraging customers not to pay income tax. According to a government witness who testified at trial, between 1997 and 2002 Freedom Books sold more than $4.2 million in products that promoted Schiff's "anti-tax" scheme.

"People who evade their tax obligations, or encourage or enable others to do so, are cheating all law-abiding taxpayers," said Eileen J. O'Connor, Assistant Attorney General for the Justice Department's Tax Division. "The Department of Justice will prosecute these crimes, and juries will convict the offenders."

The Justice Department filed a civil suit in the same court against Schiff, Neun, and Cohen in March 2003, and the court granted a temporary restraining order barring them from advertising or selling Schiff's "zero-income tax return" plan; preparing tax returns for others; and assisting others to violate the tax law, including by "selling services, books or other materials that provide direction about how to fill out fraudulent or false tax forms. . . ." The preliminary injunction was affirmed after the defendants' appeal to the U.S. Court of Appeals for the Ninth Circuit. The U.S. Supreme Court this month declined to hear Schiff's challenge to the Ninth Circuit decision. The Justice Department will ask the district court to convert the preliminary injunction into a permanent one. More information about the injunction may be found on the Tax Division website at http://www.usdoj.gov/tax/txdv03357.htmhttp://www.usdoj.gov/ta/txdv03357.htm and http://www.usdoj.gov/tax/txdv03167.htm.

The evidence presented at trial also proved that Schiff evaded the payment of more than $2 million in taxes he owed the IRS from 1979 through 1985. Schiff concealed income he earned from Freedom Books, in part by using offshore bank accounts and conducting financial transactions through secret "warehouse" banking services. The evidence also showed that Schiff used debit cards issued by offshore banks to obtain funds he transferred offshore, that he opened bank accounts using multiple tax identification numbers, and that he titled his ownership of a car in the name of a Pennsylvania corporation.

This marks the third time Schiff has been convicted of tax offenses. "Paying taxes is the price of citizenship. After three strikes, I would hope that even Mr. Schiff realizes that he has struck out," said IRS Commissioner Mark W. Everson.

Mr. Schiff-who faces a maximum sentence of 43 years in prison and $3.25 million in fines-was remanded to the custody of the U.S. Marshals Service and is scheduled to be sentenced on January 20, 2006 at 10:30 A.M. Ms. Neun-who faces up to 50 years in prison and up to $3.3 million in fines-was remanded pending a bail hearing tomorrow. Neun's sentencing is scheduled for January 27, 2006 at 9:00 A.M. Mr. Cohen-who was released on bond-is due to be sentenced on January 27, 2006 at 9:30 A.M. He faces three years incarceration and up to a $250,000 fine.


Assistant Attorney General O'Connor thanked Tax Division Trial Attorneys Jeffrey A. Neiman and David J. Ignall, who prosecuted the case, as well as the Special Agents of the IRS, other Tax Division Attorneys, and the U.S. Attorney's Office for the District of Nevada for their assistance during the investigation and trial of this matter.

###

05-548


Schiff clients who have been criminally prosecuted aren't hard to find...

    United States v. Middleton, 246 F.3d 825 (6th Cir. 2001)
    United States v. Dentice, No. 99-50101 (9th Cir. Oct. 6, 1999)
    United States v. Payne, 978 F.2d 1177 (10th Cir. 1992)
    United States v. Burdett, 962 F.2d 228 (2d Cri. 1992)
    United States v. Mosel, 738 F.2d 157 (6th Cir. 1984)
    United States v. Crosson, No. 95-176 (E.D. Pa. Dec. 21, 1995)
    United States v. Anderson, 637 F. Supp. 1106 (D. Conn. 1986)

A new one for you: United States v. David G. Pflum, 2005 TNT 196-13, No. 04-3508 (10th Cir. 10/7/2005), aff'ng No. 04-CR-40008-SAC (U.S.D.C. Kan.). The opinion is about instructions on "willfulness" and objections to certain testimony on tax rates, not too interesting. The opinion begins:

10th Cir. wrote:
Benjamin Franklin famously quipped that "in this world nothing can be said to be certain, except death and taxes." Letter from Benjamin Franklin to Jean-Baptiste Le Roy (Nov. 13, 1789), in 10 The Writings of Benjamin Franklin 69 (A. Smyth ed. 1907). While not contesting the inevitability of the former (as far as we know), David G. Pflum believed he had found a loophole to escape the latter. After an extensive study that included reading books such as "The Great Income Tax Hoax" and "How Anyone Can Stop Paying Income Taxes," he stopped paying taxes.1

[Footnote]1 We note that the author of these books, Irwin Schiff, has maintained for more than 30 years that income taxes are voluntary, but, not surprisingly, "he has never been successful with that theory in court." United States v. Schiff, 379 F.3d 621, 623 (9th Cir. 2004) (citing cases in which Schiff's arguments have been rejected); Newman v. Schiff, 778 F.2d 460, 467 (8th Cir. 1985) (referring to the "blatant nonsense" promoted by Schiff).

The 10th Circuit affirmed Pflum's conviction on eight counts of failure to pay quarterly employment taxes, in violation of 26 U.S.C. § 7202, and three counts of failure to file a federal income tax return, in violation of 26 U.S.C. § 7203, as well as his sentence of 30 months in prison.


FOR IMMEDIATE RELEASE
THURSDAY, JUNE 17, 2004
WWW.USDOJ.GOV
TAX
(202) 514-2007
TDD (202) 514-1888

Court Rules Irwin Schiff Owes
U.S. Treasury Over Two Million Dollars

WASHINGTON, D.C. - The Department of Justice announced today that on June 14, 2004, a federal court in Las Vegas ruled that Irwin A. Schiff, a well-known promoter of frivolous tax evasion excuses, is liable for over $2 million in individual income tax liabilities and related interest and penalties, in civil litigation brought by the government to recover Schiff’s unpaid income taxes for the years 1979 through 1985.

Schiff maintained that he should be excused from the imposition of civil fraud penalties because he allegedly has recently been diagnosed as suffering from a “chronic and severe delusional disorder” that resulted in his irrational and incorrect beliefs pertaining to the federal income tax system. The court declined to accept Schiff’s diminished-capacity defense.

The June 14 Order is not related to the grand jury’s March 24, 2004, indictment of Schiff and others on charges of criminal conspiracy and multiple violations of the internal revenue laws.

This matter was handled by the Justice Department’s Tax Division. The Tax Division represents the IRS in civil litigation to collect taxes in high-profile, complex or precedent-setting cases. Eileen J. O’Connor, Assistant Attorney General for the Tax Division, thanked trial attorneys Henry C. Darmstadter and Guy P. Jennings for their work in this matter.

For more information on this case and on the Department of Justice’s other tax-scam enforcement actions, go online to http://www.usdoj.gov/tax/03_tax_167.htm.

###

04-417


FOR IMMEDIATE RELEASE
WEDNESDAY, MARCH 24, 2004
WWW.USDOJ.GOV
TAX
(202) 514-2007
TDD (202) 514-1888

IRWIN SCHIFF AND TWO ASSOCIATES
INDICTED FOR TAX FRAUD

WASHINGTON D.C. - Eileen J. O’Connor, Assistant Attorney General for the Tax Division, United States Department of Justice; Daniel G. Bogden, U.S. Attorney for the District of Nevada; and Nancy Jardini, Chief, Internal Revenue Service Criminal Investigation Division announced today that in Las Vegas, Nevada, a federal grand jury returned a thirty-three (33) count indictment charging Irwin Schiff, Cynthia Neun, and Lawrence Cohen with conspiracy (18 U.S.C. §371), and aiding and assisting in the preparation and filing of fraudulent federal income tax returns (26 U.S.C. §7206(2)). Messrs. Schiff and Cohen are also charged with income tax evasion (26 U.S.C. §7201). Ms. Neun is also charged with willfully failing to file federal income tax returns (26 U.S.C. §7203), Social Security disability fraud (42 U.S.C. §408) and theft of government property (18 U.S.C. §641).

If convicted, Mr. Schiff faces maximum potential sentences totaling forty-three years in jail and $3.25 million in fines; Ms. Neun, fifty-one years in jail and $3.4 million in fines; and Mr. Cohen, twenty-seven years in jail and $1.5 million in fines.

“There is no magic way out of paying taxes,” said Assistant Attorney General Eileen J. O’Connor. “If you fall for a scheme to cheat the IRS, you may lose your money to a con artist. You may wind up in federal prison. In the end, you will still owe taxes, and you may also owe interest and penalties.”

“The indictment today reminds us that fulfilling individual tax obligations is a legal requirement and those who willfully evade that responsibility will be prosecuted,” stated Nancy Jardini, Chief, IRS Criminal Investigation. “We should not forget that the ultimate victims in tax fraud cases are the people of the United States. Those taxpayers who diligently file tax returns each year.”

Count one of the indictment alleges that the defendants conspired to file and cause other persons to file fraudulent tax returns, including more than 4,950 tax returns that fraudulently reported no income, a scheme the defendants referred to as a “zero return.” Counts two through sixteen of the indictment charge the three defendants with allegedly aiding and assisting in the preparation and filing of fraudulent “zero returns.” The indictment alleges that the fraudulent “zero returns” reported zeroes on every line of a federal income tax return related to income and expenses, and often claimed a full refund of all federal taxes withheld or paid over to the IRS. It also alleges the defendants promoted the “zero return” scheme through written materials and audiotapes sold through a business known as Freedom Books; and during seminars, radio shows such as “Freedom Now” (co-hosted by Mr. Schiff and Ms. Neun), and personal consultations with clients.

The indictment further alleges that after filing “zero returns,” many of the defendants’ clients faced IRS audits and collection of taxes due. Mr. Schiff, who has owned Freedom Books since at least 1995, together with his co-defendants, allegedly encouraged clients to pay for additional products that were supposed to help the clients handle their problems with the IRS. The indictment alleges that Mr. Schiff and Ms. Neun charged clients for writing responses to IRS correspondence, drafting court pleadings, and representing them at administrative hearings before the IRS or in judicial proceedings. Between 1997 and 2002, Freedom Books allegedly generated gross business receipts of approximately $3,726,000. Despite owning the lucrative business, the indictment alleges Mr. Schiff did not report any income on any federal income tax return filed with the Internal Revenue Service for calendar years 1987 through 2002.

The indictment also charges Mr. Schiff with allegedly evading the payment of $1,369,000 in federal taxes, interest, and penalties due for the years 1979 through 1985. It alleges that he hid income and assets in an offshore bank account, using wire transfers and debit cards to bring the money back as needed; opened bank accounts using fictitious tax identification numbers; tried to hide the true ownership of his car by placing it in the name of a Pennsylvania-based business; and conducted financial transactions through anonymous warehouse banking services offered by the Christian Patriot Association.

On June 7, 2002, after trial in the United States District Court in Oregon, leaders of the Christian Patriot Association, including Richard and Dorothy Flowers, were convicted of tax crimes in connection with a “warehouse bank” scheme designed to eliminate records customarily made in financial transactions.

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.

###

Actual Copy of Irwin Schiff's Indictment


Schiff's Attorney says he's cRaZy:

An attorney for Irwin Schiff filed a very strange brief on January 21.

The US has sued Schiff for back taxes, penalties, and interest for the income taxes Schiff owes for the years 1979-1985, a total of $2,276,244.78 (in 2001).

The US has moved for summary judgment and Schiff's lawyer has filed a brief in opposition, saying that there exists an issue as to whether Schiff owes the penalities for civil fraud because Schiff may be suffering from a mental disease or defect which prevented him from acting "willfully."

To quote from the conclusion to the brief:

"Based on the prior incarcerations, sanctions, fines, reported decisions rejecting Schiff's theories, Schiff's Deposition Transcripts instanter, revocation of probate transcript, Declaration of William A. Cohan and attached psychological reports rendered by Dr. Ortega and Dr. Barry there exists a genuine dispute as to a material issue of fact precluding summary judgment: i.e., whether Mr. Schiff suffers from a mental disease or defect relevant to the issue of 'willfulness' and/or guilt and/or his liability vel non for civil fraud penalties."

United States v. Schiff, No. CV-S-01-0895 (D.C. Nev. 1/21/2004).

The brief is only 8 pages, but there are almost 400 pages of attachments, including an affidavit from an attorney named William A. Cohan, who has apparently tried to advise Schiff in the past. Some of the highlights of Mr. Cohan's affidavit:

"When confronted with contradictions in his conclusions, Schiff either ignores the challenge or moves on to new exhortations of what the law is and his omniscient 'expertise' on the meaning of income, taxable income, the court's applying the wrong satndard, banking and/or money."

"Schiff's belief system appears to be completely circular: within that system Schiff is right, the government and the courts are wrong and he remains impervious to rational discussion."

"Stints of incarceration for years, IRS levies for hundres of thousands of dollars, substantial sanctions and fines imposed by (1) the Second Circuit for bringing frivolous appeals and (2) the United States Tax Court for presenting groundless and frivolous arguments demonstrate that Schiff's belief system is impervious to negative feed back. Schiff's expectation seems to be that someday the federal courts will experience an epiphany and acknowlege that he has been right all along."

"My attempts at rational discussions with Mr. Schiff have been more difficult than any I experienced with Mr. Marsh." (Mr. Cohan had represented Philip Marsh, the leader of the "Pilot Connection Society".)

"Based on all the foregoing and Occam's razor, I was forced to conclude the Mr. Schiff probably suffers from a severe delusional disorder or other mental disease or defect."

From the report of psychologist Cynthia Barry, Ph.D.: "[T]he diagnosis of Bipolar Disorder is well established and warranted. ... I also believe that there is a concurrent Delusional Personality Disorder. ... In short, Mr. Schiff's behavior is not rational. It is the product of a Delusional Personality Disorder that is not amenable to treatment and is unlikely to remit."

And this is not from the government, but from the lawyers of one the leaders of the "tax honesty movement."

_________________
Posted courtesy of Dan Evans
Author of the Tax Protester FAQ

evans-legal.com/dan/tpfaq.html

Actual Documents from this case:
(pdf documents)


FOR IMMEDIATE RELEASE
MONDAY, JUNE 16, 2003
WWW.USDOJ.GOV
TAX
(202) 514-2007
TDD (202) 514-1888

COURT ENJOINS IRWIN SCHIFF AND TWO ASSOCIATES

Tax Protestors Barred from Preparing Tax Returns and Selling Tax-Scheme Materials

WASHINGTON, D.C. - A federal court in Las Vegas today issued an order barring Irwin Schiff and two associates, Cynthia Neun and Lawrence N. Cohen, from selling their tax scheme, which the court held falsely claims that paying federal income tax is voluntary. The order, which will be in effect indefinitely, bars Schiff and his associates from: 1) advertising or selling Schiff’s “zero-income tax return” plan; 2) preparing tax returns for others; and 3) assisting others to violate the tax law, including by “selling services, books or other materials that provide direction about how to fill out fraudulent or false tax forms...”

The court required Schiff, Neun, and Cohen to provide a copy of its order to each of their customers and to post it on their websites within ten days. After noting that the government provided evidence showing that the stated purpose of Schiff’s scheme “was, in part, to assist in the commission of a crime,” the court rejected Schiff’s contention, also asserted by the American Civil Liberties Union in a “friend of the court” brief, that the First Amendment prohibits any injunction against the sale of Schiff’s book The Federal Mafia.

“Today’s order is another in the long line of court orders stopping the sale of fraudulent tax scams,” said Eileen J. O'Connor, Assistant Attorney General in charge of the Justice Department’s Tax Division. “As the Supreme Court recently held in a unanimous decision, ‘the First Amendment does not shield fraud.’”

In today’s order, the court found that the promotion of Schiff’s scheme “has involved over 3,000 individuals and an estimated $56 million in attempted tax evasion,” further noting that “a number of individuals have been convicted of tax crimes after following Schiff’s theories.” According to papers filed in the case, Schiff himself has twice been convicted of tax crimes.

For more information on this case and for information on other tax-scam enforcement actions, go online to http://www.usdoj.gov/tax/03_tax_167.htm

# # #

03-357


FOR IMMEDIATE RELEASE
THURSDAY, MARCH 20, 2003
WWW.USDOJ.GOV
TAX
(202) 514-2007
TDD (202) 514-1888

FEDERAL COURT ENJOINS IRWIN SCHIFF AND ASSOCIATES

Temporary Restraining Order Entered

WASHINGTON, D.C. - Late yesterday, a federal court in Las Vegas issued a temporary restraining order barring Irwin Schiff and two associates, Cynthia Neun and Lawrence N. Cohen, from promoting their tax scams. The order prohibits the trio from holding any seminars to promote or sell Schiff's fraudulent "zero tax" plan or "any other false, fraudulent, or frivolous tax schemes or arguments." The order also prohibits Schiff and his associates from selling or advertising tax-scam books, audiotapes and other tax-related products and services, and from preparing any federal income tax returns for others. Within 10 days, Schiff, Neun, and Cohen must provide a copy of the order to their current customers and former customers with whom they have done business since January 1, 1999.

"Today's order is a victory for honest taxpayers," said Eileen J. O'Connor, Assistant Attorney General in charge of the Justice Department's Tax Division. "We will continue to take action to stop promoters who pitch tax scams."

According to court papers filed by the Justice Department, Schiff, Neun, and Cohen conduct seminars and sell audiotapes and other products designed to help customers evade federal taxes, primarily by filing income-tax returns falsely listing no income and no tax due. The Justice Department has alleged that customers of Schiff and his associates attempted to evade an estimated $56 million in income taxes from 1999 through 2001.

For copies of documents filed in this case and for information on other tax scam enforcement actions, go online to http://www.usdoj.gov/tax/taxpress2003.htm.


NEW! -- United States v. Irwin Schiff, Cynthia Neun, and Lawrence N. Cohen a/k/a Larry Cohen

NEW! -- DOJ requests injunction against Irwin Schiff and accomplices for running a tax scam (again)

Some of Schiff's
more spectacular losses include:

United States v. Schiff – “America’s leading untax expert” is next convicted of three counts of attempted tax evasion and one count of willful failure to file.

Schiff v. Cox -- Schiff files a Writ of Habeas Corpus to try to get out of jail. He loses this too.

In re Schiff -- Schiff also files a Writ of Mandamus. It is denied too.

United States vs. Schiff -- Schiff tries for a reduced or corrected sentence on the grounds that his fee speech and free association rights were being violated, and that by filing a tax returns he was being compelled to testify against him self. He loses, again.

Schiff vs. U.S. -- "America's leading untax expert" not only gets hammered by the IRS on taxes that he owed, but also gets sanctioned for bringing a frivolous appeal.

Schiff v. United States -- “America’s leading untax expert” files for a tax refund, and is dismissed. He appeals, and the his appeal is dismissed as frivolous and has to pay costs.

Newman vs. Schiff -- Schiff offered $100,000 to anybody who could prove that the Internal Revenue Code requires people to pay their taxes. Newman, a tax attorney, took Schiff up on his offer and won, and after welching on the bet, Schiff barely escaped having to pay the $100,000 because he argued that he had "withdrawn" the offer immediately after he made it and therefore it was no longer valid.

Swan vs. Schiff -- Schiff gets sued by somebody who followed his advice, and who only too late discovered that it was baloney.

Schiff De-Bunked -- Detailed analysis and de-bunking of Schiff's bogus theories by somebody who followed them and now is being relentlessly pursued by the IRS.

Schiff's latest escapade, the "Zero Return", has similarly batted .000 against the IRS. See http://evans-legal.com/dan/tpfaq.html#zeroreturn


Raid on Irwin Schiff's Freedom Book Store

Actual Photo of Raid on Irwin Schiff's Freedom Book Store, February 11, 2002

Copy of the Search Warrant served on Quatloser Irwin Schiff on February 11, 2003 by IRS-CID while investigating his tax scam


For Immediate Release: August 29, 2002
Contact: Steven A. Swan (603) 483-0550

Long-Time Promoter of Tax Protester Irwin Schiff Launches
New Web Site Refuting Schiff's Income Tax Theories

(www.SchiffIsWrong.info)

(Auburn, N.H.) From 1996 to 2002, Steven A. Swan of Auburn, New Hampshire promoted the income tax theories of nationally-known tax protester Irwin Schiff of Las Vegas, Nevada. Swan promoted Schiff's income tax theories through seminars he conducted; through a Web site he set up; through radio, television, and print interviews; through press releases; through letters-to-the-editor; through advertisements; via word-of-mouth; etc.

However, Swan now realizes that Schiff has misinterpreted and misconstrued the 16th Amendment to the Constitution, the income tax laws and regulations, and the court decisions Schiff has relied upon to develop his theories that the Federal Income Tax is entirely voluntary and that anyone can legally refuse to pay it. Earlier this year, Swan filed a $7 million civil lawsuit against Schiff in U.S. District Court in Nevada claiming that Schiff was guilty of fraud, misrepresentation, and negligence against Swan. That lawsuit is currently in its discovery phase.

In order to warn the public and the thousands of Schiff followers that Schiff's income tax theories are incorrect, Swan has launched a new Web site refuting all of Schiff's income tax theories one by one. Swan's new Web site is located at www.SchiffIsWrong.info.

For further information, Swan can be reached by e-mail at stevenswan@earthlink.net; by mail at P.O. Box 453, Auburn, NH 03032; or by phone at (603) 483-0550.


Wanted: Other Victims of Income Tax Guru Irwin Schiff

For over 20 years income tax guru Irwin Schiff has been advising Americans that the federal income tax is voluntary and that anyone can legally stop paying it. According to Schiff, a million Americans have legally stopped paying income taxes using his methods. Unfortunately, many of these unwitting people have had the IRS file liens against them for not paying income taxes; many have had their credit ruined; many have had property seized from them; many have been prosecuted for income tax crimes; and some have even committed suicide because of the difficulties they have encountered for using the bogus information provided by Schiff.

Schiff himself was imprisoned in the 1980's for income tax evasion. However, in 1990 he published a new book encouraging people who wanted to stop paying income taxes to file what he calls "Zero Returns". And for the past 12 years, the Justice Department has inexplicably left Schiff alone--even though many Americans have been harmed by his incorrect theories regarding the federal income tax.

I was one person who was ensnared by Schiff's fast-talking, no-one-else-could-get-a-word-in-edgewise pitch. And for many years I promoted Schiff's theories myself. But as time went on and as I more fully investigated his theories, I came to realize that they were incorrect.

I have put together a Web site refuting Schiff's income tax theories one by one. It is at www.SchiffIsWrong.info. I have also filed a civil lawsuit against Schiff for fraud, negligence, and misrepresentation in U.S. District Court for the District of Nevada-Las Vegas.

I would like anyone else who is a victim of Irwin Schiff's misguided income tax theories to contact me so that we might discuss filing a class action lawsuit against him to prevent him from damaging any more innocent people. Perhaps we can do what the Justice Department has been unwilling to do all these years.

If you would like to contact me, my telephone number is (603) 483-0550; my e-mail address is stevenswan@earthlink.net; and my mailing address is Steven A. Swan, P.O. Box 453, Auburn, NH 03032.

Steven A. Swan
www.SchiffIsWrong.info


Income Tax Guru Schiff's $20 Million Countersuit Against U.S. Dismissed

(Las Vegas, Nevada) On August 2, 2001, the U.S. Department of Justice filed a civil lawsuit against nationally-known income tax protester Irwin A. Schiff of Las Vegas, Nevada. The Justice Department is attempting to collect almost $2.3 million ($2,276,244.78) it claims Schiff owes in income taxes, penalties and interest for tax years 1979-1985, inclusive. The case number of the lawsuit is CV-S-01-0895 and it was filed in the U.S. Disctrict Court for the District of Nevada (South).

On February 7, 2002, Schiff filed a counterclaim against the United States. Then on May 3, 2002, Schiff amended his counterclaim. In this amended pleading, Schiff sought $20 million in damages from the Government to compensate him for four years in prison, loss of liberty, civil rights, self-esteem, emotional distress, and loss of income. In addition, he sought the return of his seized property. Schiff widely publicized the fact that he had filed a counterclaim against the Government.

On June 13, 2002, U.S. District Judge Philip M. Pro dismissed Schiff's counterclaim against the United States. The Justice Department's civil lawsuit against Schiff is still active.

All of the filings in this case can be read by subscribers to the court's PACER system at the court's Web site at www.nvd.uscourts.gov .

Steven A. Swan
Auburn, New Hampshire
www.SchiffIsWrong.info


Schiff's latest escapade, the "Zero Return", has similarly batted .000 against the IRS. See http://evans-legal.com/dan/tpfaq.html#zeroreturn


Former Promoter Requests Federal Injunction Against Income Tax Protester Schiff

-----Original Message-----
From: Steven Swan [mailto:stevenswan@earthlink.net]
Sent: Monday, January 13, 2003 11:36 AM
To: Steven Swan
Subject: Former Promoter Requests Federal Injunction Against Income Tax Protester Schiff


Former Promoter Requests Federal Injunction Against Income Tax Protester Schiff

(Auburn, NH) Steven A. Swan, a former student, follower and promoter of nationally-known income tax protester Irwin Schiff of Las Vegas, Nevada, has asked a federal district court in Nevada to issue a Temporary Restraining Order and a Preliminary Injunction against Schiff to enjoin him from illegally encouraging Americans to stop paying Federal Income Taxes. Swan requested the Temporary Restraining Order and the Preliminary Injunction via a motion in the $7 million civil lawsuit Swan filed against Schiff for fraud, misrepresentation, and negligence. Swan filed the lawsuit against Schiff because Swan's reliance on Schiff's erroneous income tax theories caused Swan's real estate agency to be closed by the I.R.S., who also seized Swan's bank accounts.

Swan doesn't believe that he will ever receive any money from Schiff because of the lawsuit since Schiff keeps any money he earns in offshore trusts. Not to mention the fact that the U.S. Department of Justice has filed its own civil lawsuit against Schiff in U.S. District Court in Las Vegas in an attempt to collect $2.3 million from Schiff for back taxes, penalties, and interest for tax years 1979 through 1985. However, for some inexplicable reason, the Justice Department is not attempting to collect taxes from Schiff for more recent years, nor is it attempting to enjoin Schiff from illegally encouraging others to stop paying income taxes, nor is it prosecuting Schiff criminally for his illegal actions.

Swan says that the major purpose for his lawsuit against Schiff, at a time when the I.R.S. is becoming more and more aggressive in attempting to collect taxes, is to try to warn unsuspecting Americans that Schiff's erroneous income tax theories could lead them into very severe trouble with the I.R.S. Swan has also set up a Web site in order to try to warn people. It is located at www.SchiffIsWrong.info. (Schiff Is Wrong.info)

For more information, Swan can be reached at (603) 483-0550.


Thurston Bell says Irwin Schiff is a Scam Artist

from http://www.nite.org/docs/academic-deficiency.htm

Notice of Academic Deficiency

5.12.2001

There just seems to be an endless number of people out here on the internet, who, without credentials, positive accomplishments, or evidence of prior experience or knowledge of their work on the Internet, and who also believe that they have some argument "worthy" of hearing by the federal courts, will ask that YOU send them some money. There are in fact SO MANY of these people, that I could spend every day for the rest of my life arguing against and exposing them. This will do nothing but serve the wishes of the Treasury Department.

I have to learn to trust that individuals can be responsible for themselves, can show prudence, and judge that which is sent to them over the World Wide Web.

When it comes to IRS lawsuits, I can only share a few points of certainty regarding the issues of lawsuits.

A: The Federal Courts do NOT want to rule in YOUR favor because;

B: No Federal Judge wants to be the Federal Judge who collapses the House of Cards known as the Economic Stabilization Program.

C: The Government and the Judge will use Rule 12(b)(6) to throw your case out at the drop of a hat. That rule is: Failure to state a claim for which relief can be granted.

D: The Courts and the Government will look for the weakest point of your argument and they will rule on that one and ignore the rest of the issues.

So, if someone is sending an e-mail regarding wanting money from you to help support a case where there is no specifically damaged plaintiff and there are multiple arguments, I will not respond to such e-mails.

If you are seriously considering spreading news of or financially supporting the ideas of such people who have discovered the Internet as a means of conning people out of money, instead of sending me their e-mail please write back to them and ask them what their credentials are, what results have they had, what is their area of expertise and experience, and do they have references from anyone that you might hold in esteem.

This how the Establishments of Academia control discussions and discourse. (References are important.) And believe me folks, if someone out there was doing something that you needed to know about, I would have told you already. And if they don't have the guts to come to me directly and seek counsel with people like me who have results, they certainly are NOT worth your time and effort.

Thurston P. Bell
Founder

PLEASE NOTE:

NITE has VERY strict standards about following the letter of the Law. The people and organizations listed below use arguments that the courts have already deemed frivolous, and make all sorts of claims with no results to show for themselves. While some have truth mixed in with lies, there is just enough truth to get people tangled into their web. Some of these people are academic plagiarists who have been using NITE's work product and claiming it as their own and / or intermingling our argument with frivolous res judicata patriot arguments. Many of these people / organizations are networked (i.e. working together). A few of them are SHAM trust salesmen / women. Therefore, we can truthfully say that from our experience and first hand knowledge, the following people are "Snake Oil" peddlers and / or CON-men/women who do not deserve your trust:

Al Adask;
Al Beyer;
Al Thompson;
American Rights Litigators;
American Tax Consultants;
Barry Konicov;
Big Al;
Bill Benson;
Bill "William" Conklin;
Bill Drexler;
Bob Schulz;
Brad Barnhill;
Bruce Hatcher;
Chad Prater;
Christopher H. Hansen;
Christopher M. Hansen;
Dale Livingston;
Dan Meador;
Dave Bosset;
Dave Champion;
Dennis MacPhaeddon ;
Devvy Kidd;
Dick Simkanin;
Don Proctor;
Ed Akehurst;
Eddie Kahn;
Ed "Eduardo" Rivera;
Edmund Fitzsimmons;
Erwin Rommel School of Law;
Fairtax;
Financial Fortress;
Financial Prosperity;
Freedom Above Fortune;
Freedom Hall;
Freedom Law School;
Free Enterprise Society;
Gordon Phillips;
Howard Freeman;
Inform America;
Institute of Global Prosperity;
IRS Decoder;
Inhabitant;
Irwin Schiff;
Jeff Dickstein;
Jack Cohen;
Jim Deal;
John Feld;
John Gliha;
John Hecht;
John B. Kotmair;
Joseph Banister;
Joy Foundation;
Justin Garriott;
Ken "The Hornet" Hunter;
Lamar Hardy, Hawaii;
Larry "Lowell" Becraft;
Law Research Registry;
Les Hollingshead;
Lynda Wahl;
Lynn Meridith;
Marcia Doerr;
Mel Stamper;
Pat Patton;
Paul Lienthall;
PreferredServices;
Richard Cornforth;
Richard Standring;
Right Way Law;
Save-A-Patriot Fellowship (SAPF);
Sean O'Hara;
Solutions Group;
Steve DeLuca (S.T. Fitzgerald, Thomas Luca, other alisases)
Steven Swan;
Steven Beresford;
Supreme Law Firm;
Tax Ax;
Taxgate.com (NOT Tax-Gate.com);
Tax Statement;
The Informer;
Tom Scambos;
Tom Smith (Alleged Doctor);
Treasury Tax Secrets;
Virginia Cropsey a/k/a Little Red Hen
Wallace Institute ( A Disgrace to William Wallace and Clan Wallace);
Wayne C. Bentson
"We The People Foundation"

Review Pending
Paul Sulla, Attorney


People who do not seem to understand have not seen as many people as Mr. Bell has seen, get hurt. They lose their property, jobs, paychecks, and / or families. They obviously do not have the discernment to understand how vitally important this issue is, and how we MUST stay on point or lose.

There is no room for those who claim it is their 1st Amendment Right for supporting people who are espousing such res judicata arguments. The courts and the Kotmair case made it clear. Guilt by association is NOW supported by CASE LAW.

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