Education Associates, Inc.
A Non-Profit Corporation
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Spam-Free Site We do NOT spam. Various multi-level marketers & other criminals have recently sent out spam impersonating us, & having our return email address, so that people would complain about spam and cause us to be shut down (a/k/a "joe job"). These multi-level marketers and other criminals have engaged in this form of cyber-terrorism because our telling the truth about their fraudulent schemes was hurting their ability to sell to new victims. Fortunately, our ISP now recognizes that these fake spams are bogus and ignores them, and additionally we are duplicating this site on numerous other servers (including "hardened" servers as well as our own proprietary servers) so that we cannot be harmed by these multi-level marketers and other criminals. Death to Spammers!
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Quatlosers Hall of Shame Lynne Meredith These special-editions Quatloos commemorates those who have made a name for themselves in their particular business endeavors.
As part of our tax scam artist series, our 100Q chip commemorates Lynne Meredith who co-sponsored the We The People scam, and also several books telling people how they could avoid taxes by using a "Pure Trust" structure. Lynne is alleged to have made over $6 million selling her books, tapes and in seminar appearance fees, etc., thus proving that "crime does pay" even though she probably has little chance of enjoying the money for at least 10 years. Lynne epitomizes that "tax protesting" has absolutely nothing to do with any constitutional rights, and everything to do with common fraud. Lynne swindles those who buy her books, videotapes, and pure trust kits thinking they will work, when in fact the law is clear that “tax protesting” and “pure trusts” are both criminal. Lynne doesn’t warn people that if they follow her bogus theories that they will go to jail, for the reason that this would cut into her sales. And sell she does. If anything, Lynne is a posterchild for the motto “crime does pay”. A story appearing on the front page of the Los Angeles Times lamented that this crook “has a perpetual tan and a lavish home in the Orange County community of Sunset Beach, lectures her followers on luxury cruises, at catered parties in hotel conference rooms. * * *
* * *
Lynne never did any significant research of her own, but merely found it easy to copy the work of fellow Quatlooser Bill Benson, without revealing that most other tax protestor promoters have admitted that Benson’s theory are total BS. Lynne also doesn’t reveal that when Benson tried his theory to avoid his own taxes, he was convicted and spent time in jail for tax evasion.
But the facts have never made much difference to Lynne, so long as the cash kept flowing in. Unfortunately, the people who are really hurt are the people who bought Lynne’s books or other junk, or went to one of her seminars and believed her. Those people not only will not be able to get their money back, they individually will face charges of tax evasion and time in prison, meaning lost jobs and broken families. And in the end, it is the rest of us who really paid for Lynne’s beachfront home and luxury automobiles.
SEVERAL TAX FRAUD PROMOTERS SENTENCED TO PRISON FOR FALSELY PROMISING TO PROTECT INCOME FROM TAXES Los Angeles, CA - Five individuals associated with a tax fraud group known as "We the People" have been sentenced to federal prison for promoting bogus tax shelters that falsely promised to limit exposure to federal income taxes. The leader of the operation, Lynne Meredith, 55, of Sunset Beach, was sentenced yesterday to 121 months in prison. A federal jury last year convicted Meredith of conspiracy, four counts of mail fraud, two counts of using a false social security number, making a false statement in a passport application and five counts of failing to file a tax return. Meredith and her co-defendants were sentenced Monday afternoon in Los Angeles by United States District Judge Dean D. Pregerson. In sentencing Meredith, Judge Pregerson said her ideas on United States tax laws were "delusional." He went on to say that the defendants were motivated by greed, and that the stiff sentences in the case were warranted by the serious harm the defendants caused to their customers and to government institutions. Judge Pregerson also noted the importance of deterring other tax protest organizations that mislead taxpayers into violating tax laws. The evidence presented during a 13-week trial showed that beginning in 1991 and continuing until April 2002, Meredith conducted seminars at which she sold books and bogus "pure trusts" to people with the purpose of leading them to believe they could legally shield income and assets from taxation. Meredith and her co-defendants encouraged and assisted taxpayers by forming phony "pure trusts," opening bank accounts with phony Taxpayer Identification Numbers, filing fraudulent income tax returns and encouraging taxpayers to stop filing income tax returns. We the People sold the "pure trusts" for approximately $500 to $1,000 at seminars that were held throughout the United States and internationally. To entice potential "trust" purchasers at seminars, Meredith said that each "trust" was customized for the particular customer, who would retain complete control over their businesses and assets placed in trust without incurring any tax liability. Meredith also encouraged taxpayers to file frivolous tax returns that falsely reported that taxpayers did not have any taxable income and fraudulently requested a refund of all income taxes paid. The defendants also encouraged taxpayers to send protest correspondence to the IRS for the purpose of impeding and obstructing the IRS from collecting taxes owed by them. Meredith wrote books, including How To Cook A Vulture and Vultures In Eagle's Clothing, in which she falsely claimed that individuals could lawfully stop paying income taxes, stop their employers from withholding income taxes, and refuse to produce books and records to the IRS. The books contained examples of frivolous tax returns and protest letters. After the indictment, Meredith was featured as a leader of the tax protest movement in segments 20/20 and the NBC Nightly News, as well as in articles in People Magazine and the Los Angeles Times. The defendants falsely told their customers that paying taxes is "voluntary," and that they could file a W-4 or W-8 form with their employer claiming to be exempt from federal income tax withholdings. In fact, under federal law, anyone who earns income more than approximately $8,000 must file a tax return and pay taxes. Those customers who purchased and used the "pure trusts" to hide income face serious financial penalties and interest for the income taxes they failed to pay. From 1991 until 2002, Meredith caused thousands of taxpayers to file fraudulent income tax returns with the IRS. Those fraudulent tax returns sought refunds for as much as $32,822. The jury heard evidence that Meredith and her co-conspirators earned more than $8.5 million as a result of the scheme. Meredith did not file federal income tax returns during these years, and she did not pay any federal income taxes. Furthermore, none of the other defendants in the case filed or paid any income taxes on income they earned from the scheme. The other defendants in the case are:
Two more defendants in the case – Nora Moore, 56, of Huntington Beach, and Betty Erickson, 60, of Windsor – are scheduled to be sentenced by Judge Pregerson on June 20. Both Moore and Erickson were convicted of three counts of failing to file a tax return. The prosecution of this case reflects the increased focus the IRS has on the anti-tax movement. Although courts have continuously rejected frivolous arguments such as those presented by Meredith, the use of false, misleading and unorthodox tax advice has gained followers. The case against Meredith and the other promoters of We the People was the result of an investigation by IRS-Criminal Investigation Division. ##### Release No. 05-086 Issued Monday, May 3 at 2:35 p.m. PDT TAX FRAUD PROMOTERS ASSOCIATED WITH 'WE THE PEOPLE' CONVICTED FOR SELLING BOGUS 'PURE TRUSTS' THAT FALSELY PROMISED TO PROTECT INCOME FROM TAXES Seven individuals associated with a tax fraud group known as "We the People" were convicted today on various federal charges related to the promotion of bogus tax shelters that falsely promised to limit exposure to federal income taxes. A federal jury in Los Angeles convicted the seven on charges that included conspiring to defraud the Internal Revenue Service, fraudulently using Social Security Numbers and failing to file income tax returns. The California residents convicted today are:
Following the guilty verdicts, Meredith and Bybee were remanded into custody by United States District Judge Dean D. Pregerson. The defendants are scheduled to be sentenced by Judge Pregerson on July 23. The evidence presented during a 13-week trial showed that beginning in 1991 and continuing until April 2002, Meredith conducted seminars at which she sold books and bogus "pure trusts" to people with the purpose of leading them to believe they could legally shield inco me and assets from taxation. Meredith and her co-defendants encouraged and assisted taxpayers by forming phony "pure trusts," opening bank accounts with phony Taxpayer Identification Numbers, filing fraudulent income tax returns and encouraging taxpayers not to file income tax returns. We the People sold the "pure trusts" for approximately $500 to $1,000 at seminars that were held throughout the United States and internationally. To entice potential "trust" purchasers at seminars, Meredith said that each "trust" was customized for the particular customer, who would retain complete control over their businesses and assets placed in trust without incurring and tax liability. Meredith also encouraged taxpayers to file frivolous tax returns that falsely reported that taxpayers did not have any taxable income and fraudulently requested a refund of all income taxes paid. The defendants also encouraged taxpayers to send protest correspondence to the IRS with the purpose of impeding and obstructing the IRS from collecting these taxpayers' taxes. Meredith wrote books, including How To Cook A Vulture and Vultures In Eagle's Clothing, in which she falsely claimed that individuals could lawfully stop paying income taxes, stop their employer from withholding income taxes, and refuse to produce books and records to the IRS. The books contained examples of frivolous tax returns and protest letters. The defendants falsely told their customers that paying taxes is "voluntary," and that they could file a W-4 or W-8 form with their employer claiming to be exempt from federal income tax withholdings. In fact, under federal law, anyone who earns income more than approximately $8,000 must file a tax return and pay taxes. There is no vehicle into which businesses or income may be placed to avoid the payment of income taxes. Those customers who purchased and u sed the "pure trusts" to hide income face serious financial penalties and interest for the income taxes they failed to pay. >From 1991 until 2002, Meredith caused thousands of taxpayers to file fraudulent income tax returns with the IRS. Those fraudulent tax returns sought refunds for as much as $32,822. The jury heard evidence that Meredith earned more than $8.5 million as a result of the scheme. Meredith did not file a Federal income tax return during these years, and she did not pay any federal income taxes. Furthermore, none of the other six defendants filed or paid any income taxes on income they earned in the scheme. * Meredith was convicted of conspiracy, four counts
of mail fraud, two * Bybee was convicted of conspiracy and three counts
of failing to file a * Karl, a former CPA, was convicted of conspiracy and
four counts of mail * Giordano was convicted of conspiracy, four counts
of mail fraud and two * Watts, also a former CPA, was convicted of conspiracy,
three counts of * Erickson was convicted of three counts of failing to file a tax return. * Moore was convicted of three counts of failing to file a tax return. The charges of conspiracy, mail fraud and false representation of a social security number each carry a maximum possible penalty of five years in federal priosn. The passport fraud charge carries a potential 10-year sentence. Failing to file a tax return carries a maximum penalty of one year in prison for each count. The prosecution of this case reflects the increased focus the IRS has on the anti-tax movement. Although courts have continuously rejected frivolous arguments such as those presented by Meredith, the use of false, misleading and unorthodox tax advice has gained followers, which has led many to financial ruin. The investigation of this case and others in the country, including the indictment of Irwin Schiff in Las Vegas last month, is part of the IRS's strategy to stem the flow of misinformation produced by anti-tax promoters. The case against Meredith and the other promoters of We the People was the result of an investigation by IRS-Criminal Investigation. Tax Fraud Promoters Associated with
Seven individuals associated with a tax fraud group known as "We the People" and " Sovereignty Pure Trusts" were arrested this morning on various federal charges related to the promotion of bogus tax shelters that falsely promised to limit exposure to federal income taxes. A federal grand jury in Los Angeles on Thursday returned a 35-count indictment that includes charges of conspiring to defraud the Internal Revenue Service and fraudulently using Social Security Numbers and passports. The California residents arrested this morning are:
These defendants are expected to make their initial court appearances this afternoon in various federal courthouses in California. According to the indictment, from October 1994 to November 2001, Meredith sold books and bogus trusts to people with the purpose of leading them to believe they could legally protect income and assets from taxation. The defendants allegedly encouraged and assisted taxpayers by forming phony trusts, opening bank accounts with phony Taxpayer Identification Numbers, filing fraudulent income tax returns and encouraging taxpayers not to file income tax returns. We the People sold the "trusts" for approximately $500 at seminars that were held throughout the United States and internationally. To entice potential trust purchasers at seminars, Meredith represented that the trusts were "professional and affordable" and that each trust was customized with the "combined efforts of attorneys, paralegals, CPAs and other professional staff for its execution." When purchasers complained about t he t rust s, We t he People - which was also known as Free the People, Sovereignty Pure Trusts and Liberty International - refused to issue refunds. Meredith also encouraged taxpayers to file frivolous tax returns that, for example, accurately reported income but fraudulently requested a refund of all income taxes paid. The defendants also encouraged taxpayers to send protest correspondence to the IRS with the purpose of impeding and obstructing the IRS. Meredith wrote books, including How To Cook A Vulture and Vultures In Eagle's Clothing, in which she falsely claimed that individuals could lawfully stop paying income taxes, stop their employer from withholding income taxes, and refuse to produce books and records to the IRS. The books contained examples of frivolous tax returns and protest letters. From 1994 to 1997, according to the indictment, Meredith caused taxpayers to file fraudulent income tax returns with the IRS. Those fraudulent tax returns sought refunds for as much as $21,855, but the IRS did not issue any refund checks. The indictment also alleges that Meredith earned more than $6.2 million from 1994 through 1999 as a result of the scheme. Meredith did not file a Federal income tax return during these years, and she did not pay any federal income taxes. The indictment further alleges that six of the other defendants did not file nor pay any income taxes on income they earned in the scheme. An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt. Eileen J. O'Connor, Assistant Attorney General in charge of the Justice Department's Tax Division, said: "The Department of Justice and the IRS are committed to stopping promoters of illegal tax schemes from selling false promises, obstructing lawful IRS functions and cheating honest taxpayers." Michael S. Kochmanski, Special Agent in Charge of the Los Angeles Field Office of IRS-Criminal Investigation, stated: "Meredith misled numerous people into believing that the tax shelters she was selling would legally keep them from having to pay income taxes. Instead many of these people now find themselves owing back taxes, penalties and interest. The public should be wary of anyone who says that they have away to keep you from having to pay income taxes." All seven defendants are charged with conspiracy and 11 counts of mail fraud (both charges carry potential five-year prison sentences). Meredith is additionally charged with two counts of false representation of a social security number (five-year maximum sentence), one count of passport fraud (potential 10-year sentence), and five counts of failing to file a tax return (each count carries a maximum penalty of one year in prison). Bybee is accused in three counts of failing to file; Giordano is named in two counts of failing to file; Watts faces three counts of failing to file; Erickson allegedly failed to file for three years; and Moore is named in three counts of failing to file. The indictment names an eighth defendant in the case, Toni Smith Silva, 49, of Cypress, who is charged with one misdemeanor count of failing to file a tax return. Smith will be summoned to appear in court for an arraignment. Today's arrests come two days after the Department of Justice and IRS filed a civil law suit against individuals in San Diego, Boston and Cincinnati for selling bogus trusts to hundreds of taxpayers. The IRS has been cracking down on promoters of abusive trusts by filing civil law suits and launching criminal investigations. On Thursday, IRS Commissioner Charles O. Rossotti testified before the Senate Finance Committee that "identifying and combating actively promoted tax schemes was the IRS' highest compliance priority." The case against the promoters of We the People and Sovereignty Pure Trusts is the result of a continuing investigation by IRS-Criminal Investigation. Victims who purchased trusts or books issued by this group are encouraged to contact IRS-Criminal Investigation at (949) 389-4466. Additional Links
Some Stuff from the Trial
Thurston Bell says Lynne Meredith
is a Scam Artist 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.
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 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:
Review Pending
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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