United States Sues California Man to Bar Him from Promoting Fraudulent Tax Schemes
Defendant Organized Two Tax Fraud Companies Over Eight Year Period
WASHINGTON — The Justice Department announced today that it has filed suit against convicted tax fraud promoter Daniel Andersen to enjoin him from promoting fraudulent tax schemes. The government’s complaint alleges that Andersen directed the activities of both the Institute for Global Prosperity (between 1996 and 2002) and the Stratia Corporation (between 2002 and 2004). The lawsuit states that Andersen used these organizations to promote the fraudulent tax schemes sold by others in a series of audio recordings and at offshore conferences.
Andersen, a co-founder of the Institute for Global Prosperity, was indicted in 2004 for conspiring to defraud the United States. He pleaded guilty in 2004, and in July 2008, a federal judge sentenced him to 30 months imprisonment for his offenses.
Global Prosperity orchestrated offshore conferences where individuals, which Global Prosperity touted as "experts," hawked numerous tax fraud schemes. According to the government’s complaint, these vendors falsely told customers that they could revoke or relinquish their Social Security numbers using a U.C.C.-1 filing statement and that wages earned inside the United States are not subject to income taxes. The court papers state that Global Prosperity promoted and sold its products through a multi-level marketing system that rewarded existing salespeople for recruiting new salespeople.
The government complaint asserts that Global Prosperity received cease-and-desist orders from six states’ attorneys general in 1997 and 1998, but that Andersen ignored these orders and continued to promote the organization under a different name and offshore locations. According to court documents, after Global Prosperity disbanded in 2002, Andersen and Lorenzo "Zo" Lamantia founded Stratia Corporation, which continued to promote fraudulent tax schemes, including the fraudulent schemes formerly sold by enjoined tax-fraud promoter Bruce Hawkins. The government enjoined Lamantia from promoting fraudulent tax schemes in July, 2006.
Since 2001, the Justice Department has obtained injunctions against more than 400 tax preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website and about the Justice Department’s Tax Division is available on the Justice Department website.