Captive Insurance and 419 Plans Litigation

Showing posts with label Veba Plans. Show all posts

KENNETH ELLIOT: Defendant Kenneth Elliot

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

RAMESH SARVA: Defendant Ramesh Sarva

RAMESH SARVA: Defendant Ramesh Sarva: Defendant Ramesh Sarva is a CPA who has been steering his customer toward VEBA plans for over 20 years- and in particular, toward Sea Nine-a...

Tuesday, January 7, 2014

SARVA

Defendants have also directly and indirectly promoted the VEBA plan scheme to prospective participants. Sarva for his part has been marketing Sea Nine's VEBA plans to customers across the United States for nearly 30 years- even before Elliot became involved- and continues to do this today.

Sarva- More You Should Know

Sarva has similarly made numerous false statements to his customers about the Sea Nine VEBA plans despite his notice that they are not compliant with Section 419A(f)(6). He touts his many years of work with Sea Nine VEBA plans to potential customers reassuring them that the plans are completely legal. He provides potential plan participants with materials (such as the legal opinions by Elliot and Sea Nine) indicating that after 2004 the Sea Nine plans were not in conformity with the relevant provisions of the Tax Code. And he has promoted the concept that participation in the Sea Nine VEBA plans permits underscoring the cash value nature of the universal or whole life policies that the plans purchase for their participants, even though (noted above) a VEBA plan that operates in this fashion evidences experience rating.

RAMESH SARVA: SARVA_

RAMESH SARVA: SARVA_: Sarva also knows or has reason to know that Sea Nine VEBA plans he urges his customers to adopt are not compliant with the tax laws. As an a...