WADE B. COOK, 56, an advocate and teacher of asset protection, stock
market investing, real estate purchasing, and avoidance of income taxes,
and his wife, LAURA M. COOK, 52, were charged today in Federal Court
in Seattle with eight counts of tax fraud, conspiracy, and obstruction
of justice. The crimes charged carry maximum penalties of three to fifteen
years per count, fines of between $100,000 and $1,000,000, and costs
of prosecution.
According to court papers, this case arose from WADE COOK's operation
of Wade Cook Seminars, a wholly owned subsidiary of Wade Cook Financial
Corporation, a publicly traded company. As part of that business, WADE
COOK organized and lectured at hundreds of seminars on a wide range
of financial and asset protection topics. COOK authored many books including
Wall Street Money Machine, Wealth 101, Brilliant Deductions and Business
by the Bible.
The criminal charges focus upon tax returns WADE and LAURA COOK filed
for years 1998, 1999 and 2000. In each of those years they reported
adjusted gross incomes of approximately $350,000. The charges indicate
they did not report, and willfully concealed, receipt of approximately
$8.9 million in royalties from WADE COOK's many books and seminars despite
using such funds for their personal benefit. By not disclosing those
royalties on their tax returns they received and utilized those monies
tax free. As part of the tax fraud WADE and LAURA COOK created a fictitious
limited partnership, called Never Ending Wealth, LP (NEW), which was
in turn ostensibly owned by a type of tax exempt entity called a charitable
remainder trust. Purportedly, the trust was for the benefit of the Mormon
Church. In truth, the trust was simply a vehicle for WADE and LAURA
COOK to fraudulently conceal their royalty income and spend it as they
wished. No funds were left in the trust for the church.
The criminal charges include a count of obstruction of justice relating
to the COOKs' effort to recharacterize their use of the royalty funds,
after the fact, as loans.
Criminal charges are only allegations. Defendants are presumed innocent
until proven guilty beyond a reasonable doubt at trial.
This case was investigated by the Criminal Investigation Division of
the Internal Revenue Service. It is being prosecuted by Assistant United
States Attorneys Robert Westinghouse and Kurt Hermanns. For further
information, they can be reached at (206) 553-7970, or (253) 428-3800.
Publicly filed documents in the case are available on the Web site for
the United States Attorney's
Office. For assistance, contact Emily Langlie, the Public Affairs
Officer for the United States Attorney's Office, Western District of
Washington, at (206) 553-4110.
