Captive Insurance and 419 Plans Litigation

KENNETH ELLIOT: Defendant Kenneth Elliot: Defendant Kenneth Elliot personally and through both his employment with co-defendant Sea Nine Associates, Inc., a number of related entitie...

Tuesday, January 7, 2014

Sea Nine VEBA Important

As of August 23,2013, the IRS has closed audits of 12 Sea Nine VEBA plan-participating taxpayers who were referred to Sea Nine by Sarva. For those taxpayers alone , the IRS assessed a total of $4,852,106in additional taxes, or an average additional tax of $404,342 per audit. Because Sarva has acknowledged directing atleast 40 of his customers to Sea Nine , the total amount of harm to the Treasury he has caused through promotion of improper VEBA plans is likely almost four times higher.

2 comments:

Lance WallachFebruary 6, 2014 at 6:17 AM

he IRS and U.S. Department Justice Department have a special relationship with welfare benefit plan promoters and the brokers and insurance agents that sell them. They hate them. For over a decade, the IRS has declared that many welfare benefit plans are fraudulent and abusive tax shelters. Many of the promoters are now out of business or under criminal investigation (or both). Last month’s announcement by DOJ of new enforcement actions within the “industry” therefore comes as no surprise. The customers who bought these plans, however, might be in for a rude awakening. Huge taxes and maybe even criminal prosecution.Sea Nine VEBA Important
As of August 23,2013, the IRS has closed audits of 12 Sea Nine VEBA plan-participating taxpayers who were referred to Sea Nine by Sarva. For those taxpayers alone , the IRS assessed a total of $4,852,106in additional taxes, or an average additional tax of $404,342 per audit. Because Sarva has acknowledged directing atleast 40 of his customers to Sea Nine , the total amount of harm to the Treasury he has caused through prom

5 comments:

irsdogMarch 6, 2014 at 10:10 AM
RAMESH SARVA - Help with Common IRS Problems - Blogger

irstaxprobs.blogspot.com/.../ramesh-sarva-sarva-more-you-shou...‎
by Lance Wallach - in 49 Google+ circles
Jan 21, 2014 - RAMESH SARVA: Sarva- More You Should Know: Sarva has similarly ... Defendants have also directly and indirectly promoted the VEBA plan scheme to prospective participants. ... Labels: Kae Consulting, Kenneth Elliot, Vista Barranca ... He also was in possession of the legal opinions that Elliot and Sea ...
Help with Common IRS Problems: RAMESH SARVA: SARVA
irstaxprobs.blogspot.com/2014/01/ramesh-sarva-sarva.html‎
by Lance Wallach - in 49 Google+ circles
Jan 21, 2014 - RAMESH SARVA: SARVA: Defendants have also directly and ... named defendant and California resident Kenneth Elliott has since 2001 used ...
Abusive Tax Shelters & 419 Plans Lawsuits: IRS to Audit Sea Nine
Lance WallachMarch 11, 2014 at 3:57 PM
Lance Wallach
Shared publicly - Yesterday 2:45 PM
#Taxes

KENNETH ELLIOT

Tuesday, January 7, 2014
Sea Nine VEBA Important
As of August 23,2013, the IRS has closed audits of 12 Sea Nine VEBA plan-participating taxpayers who were referred to Sea Nine by Sarva. For those taxpayers alone , the IRS assessed a total of $4,852,106in additional taxes, or an average additional tax of $404,342 per audit. Because Sarva has acknowledged directing atleast 40 of his customers to Sea Nine , the total amount of harm to the Treasury he has caused through promotion of improper
Lance WallachApril 21, 2015 at 7:37 AM
Government Seeks Permanent Injunction Against Sea Nine Promoters

On October 9, 2013, United States Attorneys for the Central District of California and the United States Department of Justice filed a complaint seeking to permanently enjoin Kenneth Elliott, Sea Nine Associates, and others from promoting participation in, or managing, voluntary employee beneficiary association (“VEBA”) plans. According to the government, the defendants promoted “a scheme in which [the defendants] sell to customers owning small, often closely-held companies, participation in VEBA plans … and claim that customers can, through the contributions their businesses make to VEBA plan administered or operated by the Defendants, fund for their employees (and more often than not themselves) a valuable insurance-oriented welfare benefit while claiming all of the VEBA contributions as a federal income tax deduction.” The government further alleges that the defendants “have continuted to falsely claim that the VEBA plans in fact comply with the tax laws, and manage and promote them to this day despite their documented knowledge of the illegality of the plans.”

According to the complaint, Defendant Kenneth Elliott has admitted that there are over 200 participants in Sea Nine VEBA plans. The government claims that it has completed audits of 41 taxpayers and, in those audits, it has assessed nearly $13.875 million in tax deficiencies. In addition to stopping the defendants’ promotion of the plan, the government is asking the federal district court to order the defendants to produce a list of all of their customers, including names, addresses, and social security numbers.

Sea Nine VEBA participants who have not yet been subject to an IRS audit should seek the assistance of an experienced
Lance WallachApril 21, 2015 at 7:37 AM
Government Seeks Permanent Injunction Against Sea Nine Promoters

On October 9, 2013, United States Attorneys for the Central District of California and the United States Department of Justice filed a complaint seeking to permanently enjoin Kenneth Elliott, Sea Nine Associates, and others from promoting participation in, or managing, voluntary employee beneficiary association (“VEBA”) plans. According to the government, the defendants promoted “a scheme in which [the defendants] sell to customers owning small, often closely-held companies, participation in VEBA plans … and claim that customers can, through the contributions their businesses make to VEBA plan administered or operated by the Defendants, fund for their employees (and more often than not themselves) a valuable insurance-oriented welfare benefit while claiming all of the VEBA contributions as a federal income tax deduction.” The government further alleges that the defendants “have continuted to falsely claim that the VEBA plans in fact comply with the tax laws, and manage and promote them to this day despite their documented knowledge of the illegality of the plans.”

According to the complaint, Defendant Kenneth Elliott has admitted that there are over 200 participants in Sea Nine VEBA plans. The government claims that it has completed audits of 41 taxpayers and, in those audits, it has assessed nearly $13.875 million in tax deficiencies. In addition to stopping the defendants’ promotion of the plan, the government is asking the federal district court to order the defendants to produce a list of all of their customers, including names, addresses, and social security numbers.

Sea Nine VEBA participants who have not yet been subject to an IRS audit should seek the assistance of an experienced
UnknownFebruary 15, 2016 at 3:23 PM

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