FOR IMMEDIATE RELEASE|
FRIDAY, JUNE 3, 2003
TDD (202) 514-1888
CALIFORNIA FEDERAL COURT BARS NATIONWIDE TAX SCHEME
Justice Department alleged Roderick Prescott sold hundreds of sham trusts
WASHINGTON, D.C. - A federal court in San Diego yesterday permanently barred Roderick Prescott and his business, Trust Educational Services, from selling trust schemes falsely claiming that personal expenses incurred by customers can be paid through a trust in order to obtain tax benefits not available to individuals. Prescott agreed to the court order and is required to give the Justice Department records showing the names of customers who attended his workshops or used his "trust system."
"The Department of Justice is vigorously pursuing tax schemes based on bogus trusts," said Eileen J. O'Connor, Assistant Attorney General of the Tax Division.
Using the names National Trust Services and Trust Educational Services, Prescott allegedly conducted workshops and sold hundreds of trust documents, some for as much as $15,500, throughout the United States. According to papers filed by the Justice Department in the case, Prescott's bogus trusts encouraged purchasers to under report their income and claim improper deductions on their tax returns, resulting in an estimated $135 million revenue loss to the U.S. Treasury.
More information about this case can be found at:
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