Tuesday, February 21, 2012
A suspended Colorado lawyer who authored the book Bulletproof Asset Protection pleaded guilty in federal court in Las Vegas on Monday to multiple tax-related charges. William S. Reed, 61, of Santa Barbara, Calif., was indicted in July, along with two other defendants, on accusations he participated in a business scheme between 1998 and 2006 that helped others hide assets from creditors and the IRS, the Las Vegas Review-Journal reports.
He pleaded guilty to conspiracy to defraud the United States, attempted tax evasion and aggravated identity theft, and agreed to pay about $40 million to the IRS and the Federal Trade Commission.
The company allegedly sold the business opportunity training program to at least 1,000 people for about $10,000 each, created roughly 2,500 disguised ownership corporations in Nevada for $795 each, opened more than 900 disguised ownership corporate bank accounts, and prepared more than 400 fraudulent liens. ...
In September 2010, Reed stipulated in U.S. Tax Court that he owed more than $13 million to the IRS. Between then and late 2011, IRS Criminal Investigation agents determined that Reed made numerous false statements about his assets, income, and place of residence. In December 2010, Reed transferred money from a secret offshore account to an account controlled by Reed but held in the name of his father. Between December 2010 and May 2011, Reed made deposits into his son's bank account.
In July 2011, following Reed's arrest in southern California, agents discovered that he had hidden more than $70,000 in cash in his vehicle. In September 2011, Reed told the IRS he had offshore accounts containing more than $1 million in Lichtenstein, Luxembourg and the Turks & Caicos Islands. IRS agents that month also found $427,900 in a Las Vegas storage unit that Reed held under a false name.