A Seattle federal court jury yesterday handed down six conspiracy and tax fraud convictions in the Anderson's Ark tax scheme. The accused ringleader, Keith Anderson (left), was among those convicted.
The Seattle Post-Intelligencer describes the operation:
Anderson Ark moved client cash into overseas bank accounts and falsely deducted the funds from income tax returns as "consulting" or "management" expenses. In order to make the deductions look legit, Anderson's Ark told its clients to send the money through an Anderson's Ark affiliate to a shell company operated by co-defendant Richard Marks.
Marks, 60, of Los Osos, Calif., would wire the money to Austrian bank accounts operated by co-defendant Wayne Anderson, Keith Anderson's 64-year-old brother from Fresno, Calif. The cash ultimately ended up in Costa Rican bank accounts.
If using an absurd defense were helpful, these guys certainly would have walked free:
Anderson asserted that he did not recognize the jurisdiction of the court because he is a "human being" rather than a "legal fiction entity."
According to Anderson, the court has jurisdiction only over someone who has accepted a Social Security number and thus has a fictitious identity.
Wow. Apparently in Mr. Anderson's world there were no federal crimes until 1935, when the Social Security Act passed. That means Al Capone was unjustly convicted!
After being found guilty yesterday of multiple counts of mail and wire fraud, money laundering, and aiding and assisting the filing of false tax returns, Anderson told the court: "I do not recognize legal fictions. I remind you that I retain all my God-given rights ... and have never consented to this jurisdiction."
The story fails to mention whether the federal marshals obtained Mr. Anderson's consent before escorting him to his new secure living quarters.
UPDATE: Tax Analysts Coverage
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