Another Untrustworthy Trust Promoter Finds ClubFed

I, like many individuals and families, have a revocable living trust. It’s useful for avoiding probate if something should happen to me. There are many other kinds of useful trusts, too.

Of course, if there are useful trusts, there are usually purveyors of useless trusts. These are the ones that in theory let you avoid taxes but aren’t worth the paper they’re printed on. I’ve written about Aegis Corporation, a former promoter of these trusts, on several occasions (here’s one example). Many of the owners and other lead individuals at Aegis have found their way to ClubFed.

But a good fraud scheme needs help and others to promote it so a fresh group of suckers customers can be found. One such business was Midwest Alternative Planning in Danville, Illinois. Brian Wasson ran the business, and he liked the Aegis products. The trouble is that selling products that are intended to defraud the IRS is a bad idea (and a felony). Mr. Wasson was convicted earlier this year of just that: The trusts he sold cost the US Treasury over $6 million.

Last week he was sentenced
. He must make restitution of just over $600,000. He’ll also spend 15 years at ClubFed.

If someone offers you a foolproof way of avoiding taxes by taking out a trust, run (don’t walk) in the other direction. Such foolproof schemes are usually foolhardy to the extreme.

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