The Misguided
There are a lot of scams out there you could fall prey to, if you aren't careful. Most of 'em are run by some sociopathic bunko artist trying to get your cash. But the most dangerous of the bunch are the ones who not only rip you off, but who also get you to commit a crime along the way. "What kind of sick, twisted wretch would do something like that" you wonder?
Lynne Meredith would. She's running what's probably the best-organized tax evasion scam in the country. The basic idea should be familiar to you if you've ever listened to one of those wacky right-wing lunatic talk-radio stations. "There is no law that requires you to pay income taxes," is the standard pitch, but Meredith puts a real smooth spin on it.
- Prosecutors said Meredith convinced tens of thousands of people to evade federal income taxes, mostly by selling them "pure trusts"instruments that Meredith says shield property and income from tax collectors, court judgments and former spouses.
Bear in mind here that she's netted around six million dollars with this scheme, and she owns a "lavish" home in Sunset Beach, Calif., with a fleet of exotic vehicles. This stuff has swindled a lot of people who are now in enormous trouble with the IRS. Here's how her scam works:
- 1. You pick up a copy of her book, Vultures in Eagles' Clothing and get interested.
2. She's already got you for the price of the book, so you spring for the seminaroften held as part of a luxury cruise.
3. You wind up convinced that she's got her facts straight, so you formally renounce your U.S. citizenship and declare yourself a citizen of your home state.
4. You set up a "sovereign pure trust," which is theoretically tax-exempt. Her corporation does this for you and charges $500 for the service.
5. Your assets, property, accounts, everything is transferred to the "trust," and none of the items are in your name anymore.
6. The trust doesn't control the assets, you do, but you don't pay taxes on them because they aren't in your name, and the trust doesn't pay taxes on them because the trust doesn't own anything.
Nifty, huh? So the IRS built a solid case against her and while the court proceedings are going on, she's wearing an ankle monitor and a GPS device and remains under house arrest. She's facing up to 80 years in prison, but her books are still on sale, as the link above shows.
I wondered how anybody could fall for a numbskulled scheme like this. Especially since she's obviously a wacko:
- The true purpose of the income tax, Meredith says, is to fund the Federal Reserve Banka front for "eight primarily foreign, private bankers who intend to establish a monopolistic, global economy under their control."
So I fished around a bit, and found some weird stuff. According to the Action 2000 Website touting her system and books, she's "a legal scholar who attended Brigham Young University where she majored in business and minored in journalism." That's funny, because the article at the LA Times says she "spent years bouncing from job to job, working as a waitress, in a factory and selling vending machines and telephone service." What's with the "legal scholar" bit?
Now it gets seriously weird. It looks like her modus operandi involves finely parsing the legal code and coming up with all kinds of wild conclusions. For example, she didn't like being served with a subpoena, so she filed a criminal lawsuit with the 9th Circuit Court of Appeals, arguing in part:
- The U.S. Department of Justice does not enjoy general power(s) of attorney to represent the United States of America.
Exhibit "A" also bears evidence of being a fraudulent document, on its face, in part because the federal Jury Selection and Service Act at 28 U.S.C. 1861 et seq. is unconstitutional for expressly discriminating against the class of Americans known as Citizens of the United States of America. 28 U.S.C. 1865(b)(1).
As Exhibit A is the subpoena, you can see that she's arguing that the DOJ can't serve her with papers because their authority doesn't extend to the state level, and she's got several suits in the works, which are organized here, that follow the above pattern of claiming that "United States" and "The United States of America" refer to two separate entities. For example, in this suit, also on file with the 9th Circuit, she's completely insane:
- Movant hereby formally offers to prove that Respondent IRS is an alias for Trust #62, domiciled in Puerto Rico under color of the Federal Alcohol Administration. See 31 U.S.C. 1321(a)(62).
She goes to explain that under the Volstead Act (Prohibition), Federal agents were allowed to prosecute state citizens, but that after the repeal of Prohibition, the government left a "shadow army" of goons in place which morphed into the IRS and BATF. And naturally, they don't have the authority to collect taxes because they are illegitimate entities.
A little legal knowledge can be a dangerous thing, and trying to understand the United States Code in all of its parts is almost impossible. But you can drive yourself crazy trying, which she has done. Michael S. Kochmanski, who heads the LA branch of the IRS criminal investigation unit sums it all up:
- "Meredith misled numerous people into believing that the tax shelters she was selling would legally keep them from having to pay income taxes. Instead many of these people now find themselves owing back taxes, penalties and interest. The public should be wary of anyone who says that they have a way to keep you from having to pay income taxes."
Tax avoidance is legal and permissible, but tax evasion gets you one of those ankle bracelets. We hope Meredith does a long, hard stretch of time because of the misery she's created.
Pure Bunkum
While we're on the subject of swindles, how about this one: Al Sharpton announces run for President.
According to Reverand Al, the U.S. Presidency has become an "exclusive club" and he intends to change that.
- "I'm qualified, probably more qualified than any other person who is expected to be on the Democratic ticket for 2004, because I actually have a following and I speak for the people."
As Rod Dreher at the National Review points out, this isn't about a campaign for president, it's about becoming a power broker.
Because?
Here's what went down at the San Francisco Embarcadero Ice Skating Rink yesterday.

So the People for the Ethical Treatment of Animals are against fur, which means naked women ice skating. I get it. But the "sea of kids" watching makes you wonder if PETA thinks these things out carefully.
3:12:43 PM
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