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Justice News

Department of Justice
U.S. Attorney’s Office
Eastern District of Pennsylvania

FOR IMMEDIATE RELEASE
Tuesday, April 26, 2016

Lancaster County Man Charged In Tax Fraud Indictment

PHILADELPHIA - James Kerr Schlosser, 59, of Bird-in-Hand, Pennsylvania, was charged today by Indictment with engaging in corrupt endeavors to impede the due administration of the Internal Revenue Code, announced United States Attorney Zane David Memeger.  Schlosser is also charged with willfully failing to file federal income tax returns and to prevent the Internal Revenue Service from learning that he had earned income which should have reported to the United States Treasury.

The indictment alleges since 1995, Schlosser, a manufacturer’s representative for companies that sold medical equipment and surgical devices to various health care providers,   stopped filing federal income tax returns.  Along with attempting to revoke his American citizenship and social security number, Schlosser also declared himself to be a Sovereign Human Being thus making himself not subject to federal income taxation even though he earned income. 

To conceal the income that he had earned, Schlosser attempted to assign his income to multiple foreign business trusts and corporate soles which he created and registered with the Nevada Secretary of State. In order to obtain possession of the income, Schlosser entered into contracts with Nevada-based mailing forwarding services who caused the income, that had been sent to the foreign trusts and corporate soles, to be forwarded to Schlosser in Pennsylvania or other individuals who Schlosser had convinced to serve as trustees for one or more of the foreign business trusts.

Upon receipt of the income, Schlosser and the trustees deposited the money into non-interest earning investment accounts that Schlosser had established at two investment companies in an effort to keep the investment companies from issuing IRS Form 1099-INT to the Internal Revenue Service.  To further conceal his receipt of income, Schlosser purchased gold coins from at least four coin dealers which he then reconverted into cash through multiple purchases and sold in furtherance of his scheme to conceal the income that he had received. 

If convicted, Schlosser faces a substantial period of incarceration, a fine, and a special assessment.  The case was investigated by Internal Revenue Service Criminal Investigations and is being prosecuted by Assistant United States Attorney Floyd J. Miller.

 

An Indictment is an accusation.  A defendant is presumed innocent unless and until proven guilty.

Topic(s): 
Tax
Updated April 26, 2016