Dude Busted For Running An Illegal Bank For Tax Evaders From His Suburban Home
First of all, before we get to all that, tax evading is stupid. Don't do it. You'll get caught, just like this guy. He was busted for running a "Warehouse Bank," in which he pooled $28 million from "depositors" into several accounts with Bank of America, U.S. Bank and Wells Fargo Bank. From the AP:
An IRS investigator said Robert Arant had hundreds of customers, many of whom apparently used his bank, Olympic Business Systems LLC, to conceal assets for the purpose of evading taxes.Arent charged $75 for this service, along with fees for setup and wire transfers. His customers could "buy" a debit card for $30. He plans to represent himself in court. As much as we know you all hate banks, they are a better idea than giving your money to a random guy with a website. The IRS will find you. Be honest! —MEGHANN MARCOOn his now-defunct Web site, Arant advertised his services to those "who would rather not deal directly with the banking system," court records said.
IRS: Man Ran Secret Bank From Wash. Home [WTOP]
(Photo: AP/Elaine Thompson)
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I dunno, I bet his customer service was a lot better than BofA...even accounting for the possible prison sentence you may get for using him...
*whips out notepad*
giving money to random people on the internet.. BAD .. idea
check
Or you could just stick your money in a safe deposit box. Make sure not to lose the key, though.
Offshore in a non-american bank.....aka a bank thats not known in america....in a country thats always neutral in a war....cough...cough....i think you know the answer....
You realize how much it costs to establish a numbered account. And if you establish a non numbered account in these countrys you usually have to do so in person, as well when you wire transfer those funds out of a non numbered account any amount in excess of 10 thousand dollars is reported to the IRS.
Just an FYI
Or you could just stick your money in a safe deposit box. Make sure not to lose the key, though.
Just don't store it in a BofA
http://consumerist.com/consumer/complaints/bank-of-america...
Or MidWest
http://consumerist.com/consumer/help%21/bank-midwest-let-s...
BofA, and I'm sure other banks as well, has restriction on what you are allowed to put in Deposit Boxes. You are not allowed to put in valuable coins, for instance. (This is a separate issue from the urban legend about martial law confiscation of deposit box contents) Unfortunately, I read this in a BofA printed piece but I can't find the BofA TOS on line.
The word is "discreet", not "discrete." Ugh.
Also please keep in mind that one of the useful portions of the Patriot Act deals DIRECTLY with this sort of money laundering. He was money laundering!
Taking dirty funds (tax free in this case) and depositing them in legit institutions with the intent of covering up their origins. Textbook case! These clowns could be a whole lot more sinister than simple tax evaders, and believe me, the Feds want a piece of that stuff.
As to the offshore accounts - keep in mind that as soon as you move any of that money anywhere near a country that cooperates with the US, they will report amounts over 10k and also multiple smaller movements just under 10k as suspicious. That means your cash can be iced out in a very short time.
Laundering is like kidnapping - the feds are ALL over that stuff, so keep your cash clean in the first place and keep it out of bank or bankish entities as they all are forced to comply with the new Patriot Act legislation. Same reason why I hate those expensive bars that still force you to pay cash. Why should I fund some clown to launder and he still charges 7.50 for a bourbon and water?!
"It seemed like a good idea at the time."
@chipslave: The article used the word "discrete" where it should have used the word "discreet".
From the article:
"SEATTLE (AP) - A man operated a "warehouse bank" out of his suburban home, taking at least $28 million from people around the country who wanted a discrete bank account, according to court documents."
S: (adj) discrete, distinct (constituting a separate entity or part) "a government with three discrete divisions"; "on two distinct occasions"
From WordNet:
S: (adj) discreet (marked by prudence or modesty and wise self-restraint) "his trusted discreet aide"; "a discreet, finely wrought gold necklace"
S: (adj) discerning, discreet (unobtrusively perceptive and sympathetic) "a discerning editor"; "a discreet silence"
S: (adj) circumspect, discreet (heedful of potential consequences) "circumspect actions"; "physicians are now more circumspect about recommending its use"; "a discreet investor"
i would just like to open an invitation to all former olympic business systems customers to check out the newly formed olympic business holdings, llc where our debit cards are only $25.
or pay your goddamn taxes you deadbeats.
The best kept secret in America:
The Federal Income tax is ILLEGAL. There is no law!
www.makethestand.com/
So when are the Feds gonna crack down on Paypal? They are no different than this dude, just a flashier website...but just as sleazy none the less.
Nothing says Forty Year Stint In Federal Prison like a tax-protesting money launderer who decides he wants to represent himself in court.
And someone that stupid got even dumber people to give him money? Yeesh!
Dude Busted For Running An Illegal Bank For Tax Evaders From His Suburban Home Today’s lesson: don’t give your money to someone you don’t know who runs a “bank” out of his house. Oh, and you’ll get caught if you try evading taxes.
Just say your principal residence is actually Monaco or Bermuda, where there's no income tax. With that money you can buy a condo there and pretend to be living there. But the thing is the IRS doesn't deserve any of that money. When I earn $100k, that's MY money. Not yours, not the IRS's, not anyone else's. Why should I give away nearly half my money just because a bunch of thugs from Washington DC tell you that you have to?
Maybe I'll charge my taxes on a credit card and then charge it back on the grounds of erosion of constitutional rights and failure to show me the money in public schools. If I ever have kids, they're spending all 12 years in private school.
Or you could just use an offshore account....