Do you remember American Rights Litigators (ARL)? They were the outfit that counseled Wesley Snipes so successfully that he’s now enjoying three years at ClubFed. A couple who also believed the snake oil that ARL peddled is likewise about to find their way to ClubFed.
Stephen Thomas and Patricia Anderson of Lawrenceville, Georgia operated an outdoor furnishing store and a contracting business in Duluth, Georgia. (Both locations are near Atlanta.) Rather than file tax returns, Thomas and Anderson (who are married) submitted letters noting they were not US citizens but American citizens. In 2009 they submitted two claims for refunds of over $420,000 (they weren’t entitled to these, of course). They also submitted fictitious business documents to the IRS, including a purported $100 billion bond. Before 2009, they didn’t file tax returns for ten years.
Thomas was sentenced to five years at ClubFed while Anderson received only 51 months. Both will follow their sentences with three years of supervised release and both must pay a $10,000 fine. And although not mentioned in the DOJ press release, they will have to file real tax returns that show the real results of their businesses.
A hint to anyone else trying to practice such snake oil schemes: Don’t. Their chance of success is what you would expect (zero).