Praise the Lord and Go to Jail
Suckers are born every day, and so are the people out to fleece them. I've reported in the past on Aegis Corporation, a now defunct Chicago-based vendor of offshore trusts. The former owner of Aegis is spending 30 months at ClubFed.
But that's not to say that Aegis wasn't successful marketing their trusts. They were, though many of the purchasers wish that weren't the case. Four men from South Dakota purchased an Aegis trust, and then used the trust to shelter income away from the prying eyes of the IRS...for a while.
Eventually, though, the IRS found the trust and saw that it was as phony as a $3 bill. One of the men is a pastor, Jon Bowers of Junction City, South Dakota; the other three are his brothers, Kurt, James, and Kent. All four have been sentenced to terms at ClubFed ranging from ten to 36 months. Jon and James have repaid the IRS the $1.2 million in tax, penalties, and interest that they owe; Kent has repaid $297,000 but still owes $450,000; and Kurt has repaid $317,000 but owes $1.6 million additional in tax, penalties, and interest. Kent, James, and Jon also were fined between $10,000 and $50,000.
As a reminder, if it sounds too good to be true it probably is. If someone tells you that there's a legal way to hide money from the IRS in an offshore trust, do yourself a favor and run, don't walk, anywhere else.
But that's not to say that Aegis wasn't successful marketing their trusts. They were, though many of the purchasers wish that weren't the case. Four men from South Dakota purchased an Aegis trust, and then used the trust to shelter income away from the prying eyes of the IRS...for a while.
Eventually, though, the IRS found the trust and saw that it was as phony as a $3 bill. One of the men is a pastor, Jon Bowers of Junction City, South Dakota; the other three are his brothers, Kurt, James, and Kent. All four have been sentenced to terms at ClubFed ranging from ten to 36 months. Jon and James have repaid the IRS the $1.2 million in tax, penalties, and interest that they owe; Kent has repaid $297,000 but still owes $450,000; and Kurt has repaid $317,000 but owes $1.6 million additional in tax, penalties, and interest. Kent, James, and Jon also were fined between $10,000 and $50,000.
As a reminder, if it sounds too good to be true it probably is. If someone tells you that there's a legal way to hide money from the IRS in an offshore trust, do yourself a favor and run, don't walk, anywhere else.