IRS SHUTS-DOWN “NATIONAL TRUST SERVICES” SCHEME
FOR IMMEDIATE RELEASE
TAX
TUESDAY, JUNE 3, 2003
WWW.USDOJ.GOV
TDD (202) 514-1888
CALIFORNIA FEDERAL COURT BARS NATIONWIDE TAX SCHEME
Justice Department Alleged Roderick Prescott sold hundreds of sham
trusts
WASHINGTON, D.C. – A federal court in San Diego yesterday
permanently barred Roderick Prescott and his business, Trust Educational
Services, from selling trust schemes falsely claiming that personal
expenses incurred by customers can be paid through a trust in order to
obtain tax benefits not available to individuals. Prescott agreed to
the court order and is required to give the Justice Department records
showing the names of customers who attended his workshops or used his
“trust system.”
“The Department of Justice is vigorously pursuing tax
schemes based on bogus trusts,” said Eileen J. O’Connor, Assistant
Attorney General of the Tax Division.
Using the names National Trust Services and Trust
Educational Services, Prescott allegedly conducted workshops and sold
hundreds of trust documents, some for as much as $15,500, throughout the
United States. According to papers filed by the Justice Department in
the case, Prescott’s bogus trusts encouraged purchasers to under report
their income and claim improper deductions on their tax returns,
resulting in an estimated $135 million revenue loss to the U.S.
Treasury.
see: http://www.TaxEsq.com
