| FOR IMMEDIATE RELEASE
THURSDAY, SEPTEMBER 28, 2006
TDD (202) 514-1888
COURT BARS ARIZONA MEN FROM PROMOTING TAX FRAUD SCHEME
Valley Men Sold Phony Business Trust Scheme
WASHINGTON – A federal court in Arizona has permanently barred a tax return preparer from promoting a tax scheme that involved creating a phony “Business Trust Organization” or limited liability company that resulted in the loss of millions of dollars of income and payroll tax revenue, the Justice Department announced today. James G. Morris of Mesa, Ariz. consented to the injunction order without admitting the allegations in the government complaint. The United States had previously obtained injunctions against Dennis H. Lawrence of Tempe, Ariz., and Allen Vanderwey of Phoenix.
The government complaint alleged that Vanderwey helped promote the tax
scheme by marketing it through a network of insurance salesman throughout
Arizona and California. According to the complaint, customers signed up
with Vanderwey, who had Lawrence prepare business trusts and limited liability
companies. Vanderwey used his business trusts and limited liability companies
to disguise the customers’ personal expenses as business expenses,
the complaint states.
Since 2001, the Justice Department has obtained injunctions against more
than 200 tax-fraud promoters and return preparers. More information about
the Justice Department’s efforts against tax-scam promoters and
fraudulent return preparers can be found at http://www.usdoj.gov/tax/taxpress2006.htm.
Information about the Justice Department’s Tax Division can be found