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Business/Finance
See other Business/Finance Articles

Title: Westminster man told to stop running tax scheme
Source: Baltimore Sun
URL Source: http://www.baltimoresun.com/news/lo ... story?coll=bal-local-headlines
Published: Dec 4, 2006
Author: AP
Post Date: 2006-12-04 18:32:27 by Starwind
Ping List: *unUsual Suspects*     Subscribe to *unUsual Suspects*
Keywords: Kotmair, Save-A-Patriot Fellowship
Views: 3545
Comments: 200

A Westminster man has been barred by a federal judge from running a scheme in which he promised to help members avoid paying federal taxes, the U.S. Department of Justice announced today.

The "Save-A-Patriot Fellowship" run by John Baptist Kotmair Jr. falsely advised that clients didn't have to pay taxes and could legally withdraw from the Social Security system, U.S. District Judge William Nickerson said in his ruling. Despite legal action by the U.S. Justice Department, Kotmair's organization continued to file frivolous protest letters with the Internal Revenue Service on behalf of more than 800 clients and showed "no inclination ... to cease their activities," Nickerson noted.

Nickerson's order, issued last week, permanently bars Kotmair and his organization from representing or assisting anyone in corresponding with the IRS, or preparing court filings relating to income taxes. Kotmair and his organization must also notify all individuals involved in the scheme of the injunction and provide the Justice Department with the names of the customers, their e-mail addresses and telephone and Social Security numbers.

The injunction also must be posted prominently on the organization's Web sites for a year, and fraudulent promotional materials must be removed from the sites.


Poster Comment:

Kotmair's defense and taxation arguments were inane to put it charitably. His website (where he's to post the injunction) is at http://save-a-patriot.org/

Stupid tax-protestors and their schemes just muddy the water for legitimate tax-protest arguments. Kotmair, Schiff, Schultz, Rose all will become boilerplate examples of tax schemes which will be used unfairly to broad-brush and defeat otherwise legitimate arguments, rasing the cost and complexity to properly take on the IRS.

I cite Joe Banister as an example of how to do it right, intelligently, and the above tax schemes just make it difficult if not impossible for people like Banister to prevail honestly on the merits. Subscribe to *unUsual Suspects*

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Begin Trace Mode for Comment # 42.

#3. To: Starwind (#0)

Can one legally bail out of the Social Security program?

TommyTheMadArtist  posted on  2006-12-04   18:57:45 ET  Reply   Untrace   Trace   Private Reply  


#22. To: TommyTheMadArtist (#3)

Can one legally bail out of the Social Security program?

1st ... can one be expected to subject their children to a lifetime of feudal serfdom in an allegedly free country ? I say no, but that's exactly what we do when we sign them up at the hospital. The IRS readily admits that they cannot collect the income tax from people without SSN's ... and one must ask why ? It's because you haven't accepted the "promised" benefits of SSN (retirement/medical) nor have you volunteered into their "INSURANCE" program.

You asked if one could "bail out" of SS. I have, and I have a SS-521 form that is Stamped by the SS Administration, Dated, and signed by the SS Administrator that states I have no record with the SS Administration even though I had received a SSN as a child.

I formally expatriated from the Federal Government, and made numerous Constructive Notices to all federal agancies concerned with my withdrawal from SS. I rescinded, canceled, terminated and removed all signatures on all documentation that bound me contractually with any legal fiction such as government entities, banks, and other corporations. These entities were all properly noticed as well. I placed Notices in Newspapers for the appropriate amount of time required for legal notice, on top of the written Constructive Notices sent to all State and Federal Agencies. I made it very certain and obvious that I wouldn't associate with murdering scum for the conveniences provided by them. I also forfeited the many years of funds that I had "contributed". [They use this term (Contributions) so you know it's voluntary.

I do no business other than that which is private.

And even though I have this documentation I don't trust the government. I loathe the U.S. government, and have done just fine without them for almost 20 years now. I did it for Biblical reasons, not the money. And even though I'm not a holy roller, there isn't anything more prohibited by scripture in my opinion than worshipping the State through its MARK.

Many people find it too difficult to cut the umbilical cord and for good reasons too. I just got to the point where I couldn't take anymore of their fraud, and made every attempt to state my position openly.

I think I have been protected by the true authority of this universe because I have operated in good faith for the right reasons. If it's just about the money ... you'll have a hard time sticking with it.

noone222  posted on  2006-12-04   20:33:42 ET  Reply   Untrace   Trace   Private Reply  


#40. To: noone222 (#22)

Good rant, noone. How did you get the 521 form?

Neil McIver  posted on  2006-12-04   23:40:46 ET  Reply   Untrace   Trace   Private Reply  


#42. To: Neil McIver (#40)

How did you get the 521 form?

I printed it out off of the internet and filled it out. (I had already filed voluminous Notices etc., years before, but I wanted to be certain that I was out).

The form I filled out asked for my reasons to terminate SS. My reasons were (1) Deceptive Trade Practices, (2). Commercial Fraud, and (3). Mark of the Beast.

I submitted it to SS to be filed in my record ... but I didn't have a record anymore.

I did the Phil Marsh program and then some. Marsh was later attacked and they confiscated all of his computers etc., and I got a call from the U.S. Atty asking me to snitch Marsh off. The U.S. Atty told me how bad I'd been fucked by Marsh and that he'd get me some of my money back if I'd turn State's witness against Marsh.

I told that scumbag that even if Marsh was wrong, he was right as far as I was concerned, and it sounded to me like he was fishing. I hung up and never heard from him again.

Marsh ended up being convicted on one of 47 counts against him ... mail fraud. Nothing to do with taxes.

noone222  posted on  2006-12-04   23:56:01 ET  Reply   Untrace   Trace   Private Reply  


Replies to Comment # 42.

#51. To: noone222 (#42)

I thought the 521 was for terminating SS "benefits", which might be (are?) referring to payouts, as in, if you want to stop getting SS checks, you filled it out and they stopped sending it to you.

It really calls for an OMB number check against the regs to see why the form was created.

Neil McIver  posted on  2006-12-05 01:29:52 ET  Reply   Untrace   Trace   Private Reply  


#178. To: noone222 (#42)

[noone222 #42]

I did the Phil Marsh program and then some. Marsh was later attacked and they confiscated all of his computers etc., and I got a call from the U.S. Atty asking me to snitch Marsh off. The U.S. Atty told me how bad I'd been fucked by Marsh and that he'd get me some of my money back if I'd turn State's witness against Marsh.

I told that scumbag that even if Marsh was wrong, he was right as far as I was concerned, and it sounded to me like he was fishing. I hung up and never heard from him again.

Marsh ended up being convicted on one of 47 counts against him ... mail fraud. Nothing to do with taxes.

http://laws.findlaw.com/9th/9610287.html

U.S. 9th Circuit Court of Appeals
USA v MARSH
9610287

UNITED STATES OF AMERICA,
No. 96-10287
Plaintiff-Appellee,
D.C. No.
v.
CR-93-00592-VRW
PHILLIP MARSH,
Defendant-Appellant.

UNITED STATES OF AMERICA,
No. 96-10288
Plaintiff-Appellee,
D.C. No.
v.
CR-93-00592-VRW
MARLENE MARSH,
Defendant-Appellant.

* * *

On Appeal from the United States District Court

For the Northern District of California

Vaughn R. Walker, District Judge, Presiding

Argued and Submitted

March 9, 1998--San Francisco, California

Filed May 27, 1998
Before: John T. Noonan and Sidney R. Thomas, Circuit
Judges, and Dean D. Pregerson*, District Judge.

Opinion by Judge Noonan

* * *

OPINION

NOONAN, Circuit Judge:

Phillip Marsh and his five co-defendants appeal their con-
victions of conspiring to defraud the United States by imped-
ing the collection of federal income taxes and their
convictions of related crimes. They also appeal their sen-
tences, which, as to Phillip Marsh total a term of imprison-
ment of 17 1/2 years, as to his wife Marlene a term of 14
years, and as to the other defendants lesser but still substantial
periods of prison.

* * *

The second trial was two months shorter than the first. On
December 13, 1995 the jury found all six defendants guilty of
violating 18 U.S.C. S 371 by conspiring to defraud the United
States in the collection of income taxes. Phillip and Marlene
Marsh and Jill Spencer were convicted of two counts of viola-
tion of 26 U.S.C. S 7212(a) by corruptly endeavoring to
obstruct the administration of the income tax laws by filing
the liens. Both the Marshes and both the Spencers were con-
victed of violating 26 U.S.C. S 7201 by tax evasion and vio-
lating 26 U.S.C. S 7203 by failing to file tax returns.
Both
Marshes were acquitted of ten counts of mail fraud and con-
victed of ten counts of mail fraud in violation of 18 U.S.C.
S 1341. Both Spencers were similarly acquitted, Darrell of
five, Jill of nine counts, and similarly convicted of nine mail
fraud counts; and Coltrane was convicted of six mail fraud
counts. The court denied Rule 29 motions, including motions
by the Marshes and Jill Spencer to dismiss the obstruction
charges on the ground of lack of venue.

On June 26, 1996 the court pronounced sentence. Phillip
Marsh was sentenced to
5 years imprisonment for conspiracy
to defraud the United States; 5 years imprisonment for each
of his ten mail fraud convictions; 5 years imprisonment on
each of two convictions of tax evasion;
3 years imprisonment
for each his two endeavors to impede the administration of the
tax laws; and 1 year imprisonment for each conviction of will-
ful failure to file tax returns.
The sentences for conspiracy, tax
evasion and 9 of the 10 mail fraud counts were to be served
concurrently with each other. The 3 year sentences for the
endeavor to impede were to be were to be served consecu-
tively to the other counts and to each other. The 1 year sen-
tences for the two failures to file counts served consecutively
to each other and the other counts. The sentence on the two
tax evasion counts and two failure to file counts totals 7 years.
The 5 year sentence for the tenth mail fraud charge was to be
served consecutively to the extent necessary to produce a total
sentence of 17 1/2 years.

Marlene Marsh was sentenced to 5 years imprisonment for
conspiracy to defraud the United States; 5 years each for the
10 mail fraud counts, 5 years each for the two tax evasion
counts,
3 years on each of the 2 counts of endeavor to impede,
1 year on each of the 2 convictions of willful failure to file.
The 3 year sentences for endeavor to impede were to be
served concurrently with each other and consecutively to the
other sentences, the 1 year sentences for failure to file were
to be served consecutively to each other and to the other sen-
tences, and the 5 years for the two tax evasion counts and 10
mail counts were to be served concurrently to each other and
consecutively to the other sentences to the extent necessary to
produce a total sentence of 14 years. The sentence on the two
tax evasion counts and two failure to file counts totals 7 years.

* * *

The defendants appeal.

ANALYSIS

* * *

[14] Waivers. Two issues now raised by the defendants
were waived at trial. On the face of the indictments the venue
of the tax counts was wrong:
the Marshes and Spencers had
been residents of the Eastern District of California, but they
were being tried in the Northern District. The defendants said
not a word about the venue until they were convicted. They
now contend that the government might have proved some act
in the Northern District that would have related to the tax
courts and justified the venue; they could not know till the
trial was over. The defendants waited too long. They cannot
sandbag the government after the verdict is in.
United States
v. Powell, 498 F.2d 890, 891-92 (9th Cir. 1974).

Phillip Marsh earnestly urges that the exclusion of the evi-
dence of his psychological state was error
in the light of our
en banc decision in United States v. Morales, 108 F.3d 1031
(9th Cir. 1997), which he characterizes as establishing a new
constitutional rule that should be applied retroactively.
Griffith v. Kentucky, 479 U.S. 314 (1987). Morales did not
announce new constitutional doctrine but applied the Federal
Rules of Evidence. Marsh cannot benefit from the case retro-
actively. He waived his right to introduce the psychiatrist's
testimony by not seeking to introduce it in the second trial.

We find no plain error.

Other issues raised by the defendants need not be consid-
ered in view of our ruling on the principal counts.

* * *

nolu_chan  posted on  2006-12-22 19:23:25 ET  Reply   Untrace   Trace   Private Reply  


End Trace Mode for Comment # 42.

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