Department of Justice Seal Department of Justice
FOR IMMEDIATE RELEASE
FRIDAY, AUGUST 15, 2003
WWW.USDOJ.GOV
TAX
(202) 514-2007
TDD (202) 514-1888

JUSTICE DEPARTMENT SUES NEW JERSEY MAN
TO HALT ALLEGED TAX SCAMS


WASHINGTON, D.C. - The Department of Justice today sued Clifton Beale of Pennsauken, New Jersey, alleging that he promotes sham trusts and other schemes to illegally reduce the federal tax liabilities of his customers. The civil injunction suit, filed in federal court in Camden against Beale and several of his businesses, is part of the Justice Department’s continuing nationwide crackdown against promoters of illegal tax avoidance schemes.

“People should avoid the false promises of tax reduction schemes,” said Eileen J. O’Connor, Assistant Attorney General for the Justice Department’s Tax Division. “Courts have repeatedly ruled that sham trusts do not reduce taxes. The Justice Department is vigorously pursuing those who promote them.”

The complaint against Beale alleges that he promotes a scheme using sham trusts and limited liability companies that purport to enable customers to claim tax deductions for such personal expenses as lawn care, utilities, and house repairs.

The government has obtained several injunctions in the past two years against promoters of sham-trust schemes. Information on those cases can be found at:

http://www.usdoj.gov/tax/prtax/txdv02355.htm;

http://www.usdoj.gov/tax/prtax/txdv03094.htm;

http://www.usdoj.gov/tax/prtax/txdv03332.htm;

http://www.usdoj.gov/tax/prtax/txdv03280.htm;

http://www.usdoj.gov/tax/prtax/txdv02095.htm.

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03-462

Related Documents:

United States v.
Clifton Beale

Complaint for Permanent Injunction

(PDF document)


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