DnA 8-4: 6th Column: Indictment
What follows is an exact copy (excuse my type-os) of the Indictment against the Liberty Foundation (Pilot Connection) by the Department of Justice and the Internal Revenue Service.
A copy of the indictment and a "request for information" (kill your brother) form was sent out by the DOJ & IRS. Seems that the Liberty Foundation didn't believe in proper encryption techniques to keep the identity of their clients anonymous.
On the first page of the indictment there is a big stamped letters saying "SEALED BY ORDER OF COURT". I am not going to reproduce page breaks.
<<Begin Reproduction>>
-=-=-=-=-=-=-=-=-=-
MICHAEL J. YAMAGUCHI
United States Attorney
Attorney for Plaintiff
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
UNITED STATES OF AMERICA, )
)
Plaintiff, ) VIOLATIONS: Title 18, United
) States Code, Section 1341--
v. ) Mail Fraud; Title 18, United
) States Code, Section 2--Aiding
PHILLIP MARSH, ) and Abetting; Title 18, United
aka Milton Pilot, Jr., ) States Code, Section 371--
MARLENE MARSH, ) Conspiracy To Defraud The
DARREL SPENCER, ) United States; Title 26, United
aka Darrell Bradford, ) States Code, Section 7201--
JILL SPENCER, ) Tax Evasion.
aka Jill Mone Gutierrez, )
JOHN CAMPION, )
aka Joseph Coltrane, )
GREGORY GALASKI, )
ROBERT SINGLETON and )
DOUGLAS CARPA, )
)
Defendants. )
)
_______________________________________)INDICTMENT
The Grand Jury charges:
INTRODUCTION - DEFINITIONS
1. The Internal Revenue Service ("IRS") is an agency of the United States within the Department of the Treasury of the United States.
2(a). "Title 26, United States Code" refers to the statutes and laws of the United States concerning, among other things, tax liability.
(b). "Income tax" refers to the tax due to the United States for personal or business income.
3. "The Pilot Connection Society" (TPCS), later the "Liberty Foundation", is a business originated and operated by PHILLIP and MARLENE MARSH.
4. The terms "Untax", "Untaxing" and "Untaxing Package" refer to the procedural steps TPCS presents to its members can be taken to remove its members legally and permanently from any future obligation to keep records relating to tax liability, file tax returns, or pay income or employment taxes on a federal and/or state level.
5. "Society Members" refers to those persons who purchased a membership in TPCS for a annual fee of $45.
6. "Untaxed Members" refers to those persons who purchased the Untax Package from TPCS.
7. "Associate Members" (AM) refers to those persons who purchased or otherwise obtained permission from TPCS to sell memberships in TPCS and to sell untax packages.
8. "Victory letters" refers to letters TPCS claims are sent by the IRS to TPCS members who have successfully "untaxed" or had IRS liens and levies removed by following the instructions of TPCS.
9. The defendants generally held the following positions in or related to TPCS:
(a) PHILLIP MARSH - Owner and Founder,
(b) MARLENE MARSH - Owner and Founder,
(c) DARRELL SPENCER - General Manager,
(d) JILL SPENCER - Office Manager,
(e) JOHN CAMPION - National Coordinator,
(f) GREGORY GALASKI - Technical Support Staff Administrator,
(g) ROBERT SINGLETON - Technical Support Staff Administrator,
(h) DOUGLAS CARPA - Trust Producer.
COUNTS ONE THROUGH THIRTY-FIVE: (18 U.S.C. 1341 and 2)
[MAIL FRAUD]
The Grand Jury further charges that:
The Scheme
1. Paragraphs 1-9 of the INTRODUCTION are incorporated by reference as though fully set forth herein.
2. Beginning in approximately January, 1990, and continuing until the present time, in the State and Northern District of California and elsewhere,
PHILLIP MARSH,
MARLENE MARSH,
DARRELL SPENCER,
JILL SPENCER,
JOHN CAMPION,
GREGORY GALASKI,
ROBERT SINGLETON and
DOUGLAS CARPA,
defendants herein, did devise, and attempt to devise, a scheme and artifice to defraud and to obtain money and property by means of false and fraudulent pretenses, representations and promises to thousands of persons throughout the United States who became, or were solicited to become, members in TPCS and by such conduct the defendants obtained from said members over $2.5 million dollars.
4. It was further part of the scheme and artifice to defraud the defendants, and those acting on their behalf, made the following false and fraudulent pretenses, promises and representations:
- (a) That by purchasing the "Untax Package", and following the directions therein, a TPCS member would be legally and permanently "untaxed", that is, the member would thereafter have no legal obligation to keep records for income tax purposes, file tax returns or to pay any income tax.
- (b) That the TPCS and PHILLIP MARSH had been in the business of "untaxing" people for 8 to 10 years.
- (c) That TPCS had "untaxed" over 10,000 clients and had virtually a 100% success rate.
- (d) That no member of TPCS who became untaxed had ever gone to court as a result of untaxing.
- (e) That no member of TPCS who became untaxed had ever been charged with a crime as a result of untaxing.
- (f) That in all cases where a TPCS member had an IRS lien or levy placed upon a member's salary, bank account, or property, TPCS was successful in removing those liens and levies.
- (g) That the IRS would send a "victory letter" to a TPCS member who successfully "untaxed" or removed an IRS lien or levy by following TPCS instructions and that PHILLIP MARSH and TPCS had thousands of such victory letters.
- (h) That a TPCS member who was experiencing tax difficulties with the IRS and had been approached by an IRS agent or employee could force the agent or employee to back down and desist by filing a "common law lien" against the person or property of IRS agent or employee.
5(a) It was further part of the scheme and artifice to defraud that defendant PHILLIP MARSH, and those acting on his behalf, represented and implied that PHILLIP MARSH had thoroughly and exhaustively studied the Internal Revenue Code and the applicable laws, regulations, court cases and procedures relating to the collection of the federal income tax and that what MARSH said was an accurate, correct and true account of the same when, in fact, the representations by PHILLIP MARSH, merely represented a false, materially incomplete, and misleading account of the tax laws of the United States, as the defendants well knew.
5(b) It was further part of the scheme and artifice to defraud that defendant PHILLIP MARSH, and those acting on his behalf, in order to lull TPCS members into a false sense of security and to give credence and an aura of legitimacy to the untaxing program, promised members the full support and services of a "technical support staff", that included "paralegals", who would assist the members with their IRS problems. Members who sought such services routinely were sent a variety of forms and papers and were given instructions from the "technical support staff", and were falsely and fraudulently led to believe that by mailing or filing the documents, or following the instructions, the member's tax problems would be resolved in favor of the member.
5(c) It was further part of the scheme and artifice to defraud that defendant PHILLIP MARSH, and those acting on his behalf, falsely and fraudulently represented and implied that defendant DARRELL SPENCER and the "technical support staff" of TPCS, including defendants GREGORY GALASKI and ROBERT SINGLETON were thoroughly familiar with the Internal Revenue Code and the applicable laws, regulations, court cases and procedures relating to the collection of federal income tax.
5(d) It was further part of the scheme and artifice to defraud that the defendants, and those acting on their behalf, in order to give credence and an aura of legitimacy to TPCS advertised, promoted, represented and implied that defendant ROBERT SINGLETON, head of the Technical Support Staff during November, 1991 through October 1992, was a well trained and highly educated "paralegal" with expertise in legal matters relevant to TPCS members, without also revealing that defendant ROBERT SINGLETON had previously been convicted of felony fraud violations of federal law and had serviced time in federal prison as a result. The failure to disclose this fact was a material omission in furtherance of the scheme to defraud.
5(e) It was further part of the scheme and artifice to defraud that the defendants, and those acting on their behalf, made the following misrepresentations concerning the laws, statutes, regulations, and court decisions, of the United States concerning the IRS, Internal Revenue Code and the requirement to pay income tax:
- (i) The IRS is not a government agency but is a private corporation organized under the law of the State of Delaware.
- (ii) The payment of income taxes is truly voluntary and a person becomes liable to pay said taxes by "voluntarily" filing an income tax return and/or voluntarily signing a bank account signature card.
- (iii) If a person "revokes" his or her signature on a bank account signature card that "revocation" means the person is "volunteering out" of an agreement to pay income taxes.
- (iv) Only "non-resident aliens" are legally required to pay federal income taxes.
- (v) Individuals, including TPCS members are not "persons" subject to the laws set forth in Title 26, United States Code.
6. It was further part of the scheme and artifice to defraud that the defendants, and those acting on their behalf, in order to carry out the scheme to defraud, took and caused to be taken, the following actions:
(a) They sold memberships in TPCS for an annual fee of $45.
(b) They solicited TPCS members to purchase an "untaxing program" generally at a cost of between $600 -- $2100 or 10% of the members tax "problems", whichever was greater.
(c) They solicited and charged TPCS members to become Associate Members by purchasing the right from TPCS to sell memberships in, and "untaxing packages" of TPCS.
(d) They conducted periodic recruitment seminars and training sessions throughout the United States in order to:
- (i) induce persons to pay to join TPCS;
- (ii) induce persons to purchase untax packages, material and services;
- (iii) induce persons to become Associate Members;
- (iv) to give advice and training to Associate Members on how to solicit new members to join and pay money directly or indirectly to TPCS.
7. It was further a part of the scheme and artifice to defraud that the defendants, and those acting on their behalf took or caused to be taken, the following actions:
- (a) In order to placate, appease, and mislead TPCS members who experienced problems, failure or frustrations after purchasing and following the instructions of TPCS, the defendants, and those acting on their behalf, would routinely place the blame and responsibility for the failure of the "untax program", and/or continued problems with the IRS, on TPCS members for not explicitly following TPCS directions and/or would routinely place the blame and responsibility on the IRS, rather than acknowledging that the procedures mandated by TPCS in this untax package and in its other instructions and advice, would not and could not relieve anyone of their tax liability or remove them from the tax system, as the defendants full well knew.
- (b) In order to give credence and an aura of legitimacy to TPCS and the representations made by TPCS, the defendants, and those acting on their behalf, in providing information, advice and referrals to TPCS members, made misleading and false statements concerning the use of "trusts" as a means by which TPCS members could legally avoid the payment of taxes and/or seizures, liens and levies of their property by the IRS. As part of the scheme to defraud the defendants promoted, advertised and utilized the services of defendant DOUGLAS CARPA, a self-styled "trust" producer, among others.
8. It was further a part of the scheme and artifice to defraud that the defendants and those acting on their behalf, in order to lull TPCS members into a false sense of security, and to give credence and an aura of legitimacy to TPCS program, periodically sent a newsletter called "THE CONNECTOR", later the "Liberty Bell", to TPCS members and a publication called the "AM'er" to Associate Members. These publications continued to, among other things, falsely assert and imply that the TPCS was continuing to successfully "untax" members or solve their tax problems and that "victory letters" from the IRS continued to be received by TPCS and the untaxed members.
9. It was further part of the scheme and artifice to defraud that PHILLIP MARSH and MARLENE MARSH would and did receive and use for their benefit the following money derived from members of TPCS and raised at least the following amounts of money through the sale of The Pilot Connection Society memberships and untaxing programs during the time periods specified:
a. January 1, 1990 through December 31, 1990 $ 313,528.80
b. January 1, 1991 through December 31, 1991 $ 929,797.46
c. January 1, 1992 through December 31, 1992 $1,333,050.77
= $2,576,337.0310(a) Paragraphs 1 through 10 of this section are incorporated by reference as though fully set forth therein in Counts One through Thirty-Seven below;
(b) On or about the following specified dates, in the State and Northern District of California and elsewhere, the defendants specified in each count, for the purpose of executing a scheme to defraud did knowingly cause, and aid and abet in causing, the following specified mail matter to be mailed and delivered by the United States Postal Service, according to the directions thereon; each count constituting a separate violation of 18 U.S.C. 1341 and 2.
COUNT DATE DEFENDANT TO/FROM CONTENTS
1 7/5/90 PHILLIP MARSH IRS, San Mateo, CA/ Untax
MARLENE MARSH Hans Saier, documents
Redwood City, CA
2 12/12/90 PHILLIP MARSH Hyatt, San Jose, CA Hotel invoice
MARLENE MARSH Phillip Marsh, TPCS,
JOHN CAMPION Los Gatos, CA
GREGORY GALASKI
3 12/90 PHILLIP MARSH Nadine Smith, San Jose, The Connector
MARLENE MARSH CA/Phillip Marsh, Los
JOHN CAMPION Gatos, CA
GREGORY GALASKI
4 12/21/90 PHILLIP MARSH Nadine Smith, San Jose, Compleat
MARLENE MARSH CA/Phillip Marsh, Los Patriot,
JOHN CAMPION Gatos, CA copy of the
GREGORY GALASKI Constitution
5 3/1/91 PHILLIP MARSH IRS-Fresno/Nadine Smith Untax
MARLENE MARSH San Jose, CA documents
JILL SPENCER
DARREL SPENCER
JOHN CAMPION
GREGORY GALASKI
6 3/4/91 PHILLIP MARSH U.S. Postal Service, IRS Form W-4
MARLENE MARSH Minneapolis MN/ Correspondence
JILL SPENCER Martha & Felino
DARREL SPENCER Cabusora, Union City,
JOHN CAMPION CA
GREGORY GALASKI
7 9/24/91 PHILLIP MARSH David & Debbie Invoice for
MARLENE MARSH Anderson, San untaxing
JILL SPENCER Carlos, CA/TPCS
JOHN CAMPION Stockton, CA
GREGORY GALASKI
8 10/91 PHILLIP MARSH Mago Paetz, Fulton Notice re:
MARLENE MARSH CA/Jill Cutierrez, AM termination
JILL SPENCER Stockton, CA
JOHN CAMPION
GREGORY GALASKI
9 10/2/91 PHILLIP MARSH Phillip Marsh, TPCS, Notification
MARLENE MARSH Stockton, CA/ Gene of change of
JILL SPENCER and Alicia Neisingh, address
JOHN CAMPION Santa Rosa, CA
GREGORY GALASKI
10 11/21/91 PHILLIP MARSH TPCS, Stockton, CA/ Billing for 264
MARLENE MARSH Viking Freight Systems, Cartons--books
JILL SPENCER San Jose, CA
JOHN CAMPION
GREGORY GALASKI
ROBERT SINGLETON
11 12/12/91 PHILLIP MARSH Lynn Preston, Alameda, Notice re:
MARLENE MARSH CA/Jill Gutierrez, AM termination
JILL SPENCER Stockton, CA
JOHN CAMPION
GREGORY GALASKI
12 12/12/91 PHILLIP MARSH Lloyd Miller, Fremont, Notice re:
MARLENE MARSH CA/Jill Gutierrez, AM termination
JILL SPENCER Stockton, CA
JOHN CAMPION
GREGORY GALASKI
ROBERT SINGLETON
13 12/14/91 PHILLIP MARSH Paul Molenda, Santa Notice re:
MARLENE MARSH Rosa, CA/Jill Gutierrez,AM termination
JILL SPENCER Stockton, CA
JOHN CAMPION
GREGORY GALASKI
ROBERT SINGLETON
14 12/14/91 PHILLIP MARSH TPCS, Stockton, CA/ Postal Money
MARLENE MARSH David Anderson Order
JILL SPENCER San Carlos, CA
JOHN CAMPION
GREGORY GALASKI
ROBERT SINGLETON
15 12/91 PHILLIP MARSH David & Debbie Anderson The Connector
MARLENE MARSH San Carlos, CA/
JILL SPENCER TPCS, Stockton, CA
JOHN CAMPION
GREGORY GALASKI
ROBERT SINGLETON
16 1/92 PHILLIP MARSH David & Debbie Anderson Letter re:
MARLENE MARSH San Carlos, CA/ Doug Carpa
JILL SPENCER TPCS, Stockton, CA as trust
JOHN CAMPION producer
GREGORY GALASKI
ROBERT SINGLETON
DOUGLAS CARPA
17 2/12/92 PHILLIP MARSH Viking Freight Systems, Money Order
MARLENE MARSH San Jose, CA/TPCS,
JILL SPENCER Stockton, CA
JOHN CAMPION
GREGORY GALASKI
ROBERT SINGLETON
18 3/6/92 PHILLIP MARSH Douglas Carpa, Tempe, Letter re:
MARLENE MARSH AZ/Barbara Robinson, trust deposit
JILL SPENCER Walnut Creek, CA
DARREL SPENCER
JOHN CAMPION
GREGORY GALASKI
ROBERT SINGLETON
DOUGLAS CARPA
19 3/92 PHILLIP MARSH Barbara Robinson, Rejection note
MARLENE MARSH Walnut Creek, CA/ re: trust
JILL SPENCER Douglas Carpa, deposit
DARREL SPENCER Tempe, Arizona
JOHN CAMPION
GREGORY GALASKI
ROBERT SINGLETON
DOUGLAS CARPA
20 4/92 PHILLIP MARSH TPCS-Stockton, CA/ $820 cash for
MARLENE MARSH Ron Davis, Union TPCS business
JILL SPENCER City, CA
DARREL SPENCER
JOHN CAMPION
GREGORY GALASKI
ROBERT SINGLETON
21 5/1/92 PHILLIP MARSH Jarrett & Associates Invoice for
MARLENE MARSH San Jose, CA / TPCS, "I LOVE MY JOB"
JILL SPENCER Stockton, CA buttons
DARREL SPENCER
JOHN CAMPION
GREGORY GALASKI
ROBERT SINGLETON
22 5/18/92 PHILLIP MARSH Scott Grunsted, Santa Request for
MARLENE MARSH Rosa, CA/TPCS Stockton, renewal of
JILL SPENCER CA membership
DARREL SPENCER
JOHN CAMPION
GREGORY GALASKI
ROBERT SINGLETON
23 6/26/92 PHILLIP MARSH Craig Wiren, San Jose, Letter saying
MARLENE MARSH CA/TPCS, Stockton, CA "Untax at least
JILL SPENCER one new member
DARREL SPENCER in 10 days or
JOHN CAMPION you will be
GREGORY GALASKI terminated"
ROBERT SINGLETON
24 9/4/92 PHILLIP MARSH Jerome Gray, Monte TPCS Membership
MARLENE MARSH Sereno, CA/TPCS, renewal letter
JILL SPENCER Stockton, CA
DARREL SPENCER
JOHN CAMPION
GREGORY GALASKI
ROBERT SINGLETON
25 9/92 PHILLIP MARSH TPCS, Stockton, CA/ Payment for
MARLENE MARSH Jerome Gray, Monte TPCS membership
JILL SPENCER Sereno, CA renewal
DARREL SPENCER
JOHN CAMPION
GREGORY GALASKI
ROBERT SINGLETON
26 9/17/92 PHILLIP MARSH Dick Van Cleave, Mill Cash refund
MARLENE MARSH Valley, CA/TPCS,
JILL SPENCER Stockton, CA
DARREL SPENCER
JOHN CAMPION
GREGORY GALASKI
ROBERT SINGLETON
27 9/18/92 PHILLIP MARSH TPCS, Stockton, CA/ Payment of
MARLENE MARSH Jeffery and Ellen $45.00
JILL SPENCER Sabino, Madera, CA,
DARREL SPENCER (Postmarked
JOHN CAMPION Oakland, CA).
GREGORY GALASKI
ROBERT SINGLETON
28 10/1/92 PHILLIP MARSH Robert Ray Williams, Letter from
MARLENE MARSH San Jose, CA/Phillip Darrell Spencer
JILL SPENCER Marsh, TPCS, Darrell
DARREL SPENCER Spencer, Stockton, CA
JOHN CAMPION
GREGORY GALASKI
ROBERT SINGLETON
29 10/26/92 PHILLIP MARSH Hugh Lorshbough, Termination for
MARLENE MARSH Sunnyvale, CA/ not writing
JILL SPENCER TPCS, Stockton, CA enough business
DARREL SPENCER
JOHN CAMPION
GREGORY GALASKI
ROBERT SINGLETON
30 11/23/92 PHILLIP MARSH Bob Singleton, Letter request-
MARLENE MARSH Stockton, CA/ ing assistance
JILL SPENCER Hans van Krieken,
DARREL SPENCER Martinez, CA
JOHN CAMPION
GREGORY GALASKI
ROBERT SINGLETON
31 12/3/92 PHILLIP MARSH Jack Blake, Watsonville, Letter with
MARLENE MARSH CA/TPCS, Stockton, CA enclosures
JILL SPENCER re: IRS
DARREL SPENCER
JOHN CAMPION
GREGORY GALASKI
32 2/4/93 PHILLIP MARSH Hans and Carol Van Membership
MARLENE MARSH Krieken, Martinez, Renewal office
JILL SPENCER CA/TPCS, Stockton, CA
DARREL SPENCER
JOHN CAMPION
GREGORY GALASKI
33 2/10/93 PHILLIP MARSH TPCS, Stockton, CA/ Payment of
MARLENE MARSH Cliff Koeper, Milpitas, $1,100.00
JILL SPENCER CA
DARREL SPENCER
JOHN CAMPION
GREGORY GALASKI
34 10/25/93 PHILLIP MARSH Nadine Smith, San Jose, Invoice for
MARLENE MARSH CA/The Liberty Founda- Untaxing
tion, Parker, CO materialCOUNT THIRTY-FIVE: (18 U.S.C. 371)
[CONSPIRACY TO COMMIT FRAUD]
[AGAINST THE UNITED STATES ]
The Grand Jury further changes that:
1. Beginning in approximately January, 1990, and continuing until the filing of this indictment, in the State and Northern District of California, and elsewhere,
PHILLIP MARSH,
MARLENE MARSH,
JILL SPENCER,
DARREL SPENCER,
JOHN CAMPION,
GREGORY GALASKI,
ROBERT SINGLETON and
DOUGLAS CARPA,
defendants herein, did knowingly agree and conspire with each other, and with others who are known and unknown to the Grand Jury, to defraud the United States, through deceit, craft, trickery and dishonest means, by attempting to defeat and obstruct the lawful functions of the IRS in the ascertainment, computation, assessment and collection of revenue, namely federal income and employment tax; all in violation of 18 U.S.C. 371.
THE DISHONEST MEANS AND METHODS
2(a) In order to carry out and effect the object of the conspiracy and defendants, and those acting on their behalf, created, maintained and operated TPCS to convince, encourage and assist other persons to case filing income tax returns and to cease or resist compliance with any other lawful obligations relating to the collection of income and employment tax through the use of deceit, craft, trickery and dishonest means.
(b) The deceit, craft, trickery and dishonest means utilized by the defendants, through TPCS, are described above in paragraphs 1-10 relating to Counts One through Thirty-Four of this indictment and those paragraphs are incorporated by reference as though fully set forth herein.
OVERT ACTS
As part of the conspiracy and in order to achieve and give effect its objectives, the following overt acts were committed;
1. The offenses described in Counts 1 through 34 of this indictment are incorporated by reference as though fully set forth herein as overt acts 1-1 through 1-24 of Count 35.
2. On or about July 1, 1990, defendants PHILLIP MARSH and MARLENE MARSH caused the first issue of The Connector to be produced and mailed from San Jose, California, to members of TPCS.
3. On or about October 1, 1990, defendants PHILLIP MARSH and MARLENE MARSH established a bank account in the name of "PHILLIP AND MARLENE MARSH, TRUSTEES FOR THE PILOT CONNECTION SOCIETY", at Wells Fargo Bank in San Jose, California.
4. On or about October, 1990, defendants PHILLIP MARSH and MARLENE MARSH produced and created a one hour "Untax Introductory Meeting" video.
5. On or about June 22, 1991, defendants PHILLIP MARSH and MARLENE MARSH, JILL and DARRELL SPENCER and JOHN CAMPION conducted a "Quarterly AM/Potential AM meeting" at the new TPCS headquarters located at 10646 Thornton Road, Stockton, California.
6. On or about September 27 through 28, 1991, defendants PHILLIP MARSH and MARLENE MARSH conducted a "Quarterly AM Training Session" at the Marriott Hotel in Santa Clara, California.
7. On or about September 27 and 28, 1991, defendant JOHN CAMPION was a featured speaker at TPCS "Quarterly Leadership Meeting" conducted at the Marriott Hotel in Santa Clara, California.
8. On or about September 27 and 28, 1991, GREGORY GALASKI was a featured speaker at TPCS "Quarterly Leadership Meeting" conducted at the Marriott Hotel in Santa Clara, California.
9. On or about January 7, 1992, defendant DOUGLAS CARPA was named as the official trust producer for TPCS in a letter from PHILLIP MARSH to all TPCS members stating:
"Doug has put together a special package for The Pilot Connection Society members who need anything from a simple checking account to a sophisticated multi-faceted trust. We are thrilled to find a man of this caliber to provide service to our organization".
10. On or about January 17, 1992, in Los Angeles, California, defendant DOUGLAS CARPA spoke at a TPCS seminar on "belligerent" techniques and the use of trusts in defeating and resisting the IRS.
11. On or about January 17, 1992, in Los Angeles, California, defendant GREGORY GALASKI spoke at a TPCS convention about opportunities through the TPCS to effect the object of defeating the IRS.
12. On or about January 17, 1992 in Los Angeles, California, defendant ROBERT SINGLETON spoke at a TPCS convention about opportunities through the TPCS to defeat and resist IRS liens and levies.
13. On or about January 17 through 18, 1992, defendants PHILLIP MARSH and MARLENE MARSH conducted a "Quarterly Training Meeting" at the Marriott Hotel in Los Angeles, California.
14. On or about May 5, 1992, defendant DOUGLAS CARPA conducted and taped a telephone conversation between himself, defendants PHILLIP MARSH and DARREL SPENCER, and others, regarding policy, procedures and payments between himself and TPCS concerning TPCS and his "trusts".
15. On or about May, 1992, defendant DARREL SPENCER became the Editor in Chief of TPCS publications "The Connector" and the "AM'er".
16. On or about August 12, 1992, a Commercial Lien was filed in King County, Washington by TPCS against an IRS Special Agent, an IRS Criminal Investigation Division Chief, IRS Managers, United States and Assistant United States Attorneys, a United States District Court Judge, United States Magistrates and a California State Court Judge.
17. On or about September 24 through 26, 1992, defendants PHILLIP MARSH, JILL SPENCER and DARRELL SPENCER, ROBERT SINGLETON and JOHN CAMPION conducted the first "Semi-Annual Pilot Connection Society Convention" at the Riveria Hotel in Las Vegas, Nevada.
18. On or about October 5, 1992, at the direction of and caused by the defendants a Commercial Lien to be filed in the Clark County, Nevada by TPCS member Richard T. Peterson. The lien was filed against IRS Revenue Officers, an IRS District Director, an IRS Special Agent, an IRS Problem Resolution Officer, an IRS Service Center Director, an IRS Disclosure Officer, and an IRS Tax Technician.
19. On or about October 7, 1992, at the direction of and caused by the defendants, a Commercial Lien was filed in King County, Washington by TPCS member Lonny J. Texeira. The lien was filed against an IRS Tax Examining Assistant, an IRS Tax Examining Assistant, and an IRS Chief, Collection Branch.
20. On or about October, 20, 1992, at the direction of and caused by the defendants, a Commercial Lien was filed in Larimer County, Colorado by TPCS member David Thomas. The lien was filed against IRS personnel and the Federal Reserve Corporation.
21. In or about October, 1992, defendants PHILLIP MARSH and MARLENE MARSH instructed TPCS members that all currency sent to the Home Office of TPCS in excess of $500.00 was to be sent by UPS or Federal Express and that currency was to be wrapped in aluminum foil to avoid detection by the government.
22. On or about October, 1992, defendants PHILLIP MARSH and MARLENE MARSH and TPCS announced PHILLIP MARSH's video entitled "How to Stop Paying Income Taxes Legally" was available to be purchased.
23. On or about October, 1992, defendant ROBERT SINGLETON advised TPCS member Mary Olinger in the preparation and filing of a commercial lien against IRS personnel, U.S. Department of Justice attorneys, a U.S. District Court Judge, and a local bank president.
COUNT THIRTY-SIX: (26 U.S.C. 7201)
[TAX EVASION ]
The Grand Jury further charges that;
That during the calendar year, 1990, PHILLIP MARSH, a resident of the Northern District of California, had and received taxable income upon which there was owing to the United States of America an income of $12,173; that well-knowing and believing the foregoing facts,
PHILLIP MARSH,
defendant herein, did willfully attempt to evade and defeat the said income tax due and owing by him to the United States of America for said calendar year by failing to make an income tax return on or before April 15, 1991, as required by law, to any proper officer of the IRS, by failing to pay to the IRS said income tax, and by engaging in affirmative acts of evasion; including but not limited to dealing primarily in cash, using a mail drop to receive cash receipts for TPCS failing to keep proper books and records, concealing and attempting to conceal from the IRS the nature, source and extent of his income, structuring transactions to avoid detection of income and the location of assets by the government, utilizing a bank account in the name of a trust over which he had control and advising his business customers to use cash or postal money order.
In violation of Title 26, United States Code, Section 7201.
COUNT THIRTY-SEVEN: (26 U.S.C. 7201)
[TAX EVASION ]
The Grand Jury further charges that:
That during the calendar year, 1991, PHILLIP MARSH, a resident of the Northern and Eastern Districts of Columbia, had and received taxable income upon which there was owing to the United States of America an income tax of $21,261; that well-knowingly and believing the foregoing facts,
PHILLIP MARSH,
defendant herein, did willfully attempt to evade and defeat the said income tax due and owing by him to the United States of America for said calendar year by failing to make an income tax return on or before April 15, 1992, as required by law, to any proper officer of the IRS, by failing to pay to the IRS said income tax, and by engaging in affirmative acts of evasion; including but not limited to dealing primarily in cash, using a mail drop to receive cash receipts from TPCS, failing to keep proper books and records, concealing and attempting to conceal from the IRS the nature, source and extent of his income, structuring transactions to avoid detection of income and the location of assets by the government, utilizing a bank account in the name of a trust over which he had control and advising his business customers to use cash or postal money orders.
In violation of Title 26, United States Code, Section 7201.
COUNT THIRTY-EIGHT: (26 U.S.C. 7201)
[TAX EVASION ]
The Grand Jury further charges that:
That during the calendar year, 1992, PHILLIP MARSH, a resident of the Eastern District of California, had and received taxable income upon which there was owing to the United States of America an income tax of $38,800; that well-knowing and believing the foregoing facts,
PHILLIP MARSH,
defendant herein, did willfully attempt to evade and defeat the said income tax due and owing by him to the United States of America for said calendar year by failing to make an income tax return on or before April 15, 1993, as required by law, to any proper officer of the IRS by failing to pay to the IRS said income tax, and by engaging in affirmative acts of evasion; including but not limited to dealing primarily in cash, using a mail drop to receive cash receipts for TPCS, failing to keep proper books and records, concealing and attempting to conceal from the IRS the nature and source and extent of his income and the location of assets by the government, utilizing a bank account in the name of a trust over which he had control and advising his business customers to use cash or postal money orders.
In violation of Title 26, United States Code, Section 7201.
COUNT THIRTY-NINE: (26 U.S.C. 7201)
[TAX EVASION ]
The Grand Jury further charges that:
That during the calendar year, 1990, MARLENE MARSH, a resident of the Northern District of California, had and received taxable income upon which there was owing to the United States of America an income tax of $12,173; that well-knowing and believing the foregoing facts,
MARLENE MARSH,
defendant herein, willfully attempted to evade and defeat the said income tax due and owing by her to the United States of America for said calendar year by failing to make an income tax return on or before April 15, 1991, as required by law, to any proper officer of the IRS, by failing to pay to the IRS said income tax, and by engaging in affirmative acts of evasion; including but not limited to dealing primarily in cash, suing a mail drop to receive cash receipts for TPCS, failing to keep proper books and records, concealing and attempting to conceal from the IRS the nature, source and extent of her income, structuring transactions to avoid detection of income and the location of assets by the government, utilizing a bank account in the name of trust over which she had control and advising her business customers to use cash or postal money orders.
In violation of Title 26, United States Code, Section 7201.
COUNT FORTY: (26 U.S.C. 7201)
[TAX EVASION ]
The Grand Jury further charges that:
That during the calendar year, 1991, MARLENE MARSH, a resident of the Northern and Eastern Districts of California, had and received taxable income upon which there was owing to the United States of America an income tax of $21,261; that well-knowing and believing the foregoing facts,
MARLENE MARSH,
defendant herein, did willfully attempt to evade and defeat the said income tax due and owing her to the United States of America for said calendar year by failing to make an income tax return on or before April 15, 1992, as required by law, to any proper officer of the IRS, by failing to pay to the IRS said income tax, and by engaging in affirmative acts of evasion; including but not limited to dealing primarily in cash, using a mail drop to receive cash receipts for TPCS, failing to keep proper books and records, concealing and attempting to conceal from the IRS the nature, source and extent of her income, structuring transactions to avoid detection of income and the location of assets by the government, utilizing a bank account in the name of a trust over which she had control and advising her business customers to sue cash or postal money orders.
In violation of Title 26, United States Code, Section 7201.
COUNT FORTY-ONE: (26 U.S.C. 7201)
[TAX EVASION]
The Grand Jury further charges that:
That during the calendar year, 1992, MARLENE MARSH, a resident of the Eastern District of California, had and received taxable income upon which there was owing to the United States of America an income tax of $38,800; that well-knowing and believing the foregoing facts,
MARLENE MARSH,
defendant herein, did willfully attempt to evade and defeat the said income tax due and owing by her to the United States of America for said calendar year by failing to make an income tax return on or before April 15, 1993, as required by law, to any proper officer of the IRS, by failing to pay to the IRS said income tax, and by engaging in affirmative acts of evasion' including but not limited to dealing primarily in cash, using a mail drop to receive cash receipts for TPCS, failing to keep proper books and records, concealing and attempting to conceal from the IRS the nature, source and extent of her income, structuring transactions to avoid detection of income and the location of assets by the government, utilizing a bank account in the name of a trust over which she had control and advising her business customers to use cash or postal money orders.
In violation of Title 26, United States Code, Section 7201.
COUNT FORTY-TWO (26 U.S.C. 7201)
[TAX EVASION ]
The Grand Jury further charges that:
That during the calendar year, 1990, JILL SPENCER, a resident of the Central District of California, had and received taxable income upon which there was owing to the United States of America an income tax of $4,731; that well-knowing and believing the foregoing facts,
JILL SPENCER,
defendant herein, did willfully attempt to evade and defeat the said income tax due and owing by her to the Untied States of America for said calendar year by failing to timely make an income tax return on or before April 15, 1991, as required by law, to any proper officer of the IRS, by failing to pay to the IRS said income tax, and by engaging in affirmative acts of evasion' including but not limited to dealing primarily in cash, using a mail drop to receive cash receipts for TPCS, failing to keep proper books and records' concealing and attempting to conceal from the IRS the nature and source and extent of her income, structuring transactions to avoid detection of income and the location of assets by the government, advising business customers to use cash or postal money orders and filing a false W-4 Form claiming exempt.
In violation of Title 26, United States, Code, Section 7201.
COUNT FORTY-THREE: (26 U.S.C. 7201)
[TAX EVASION ]
The Grand Jury further charges that:
That during the calendar year, 1991, JILL SPENCER, a resident of the Eastern District of California, had and received taxable income upon which there was owing to the United States of America an income tax of $2,681.00; that well-knowing and believing the foregoing facts,
JILL SPENCER,
defendant herein, did willfully attempt to evade and defeat the said income tax due and owing by her to the United States of America for said calendar year by failing to timely make an income tax return on or before April 15, 1992, as required by law, to any proper officer of the IRS< by failing to pay to the IRS said income tax, and by engaging in affirmative acts of evasion' including but not limited to dealing primarily in cash, using a mail drop to receive cash receipts for TPCS, failing to keep proper books and records; concealing and attempting to conceal from the IRS the nature and source and extent of her income, structuring transactions to avoid detection of income and location of assets by the government and advising business customers to use cash or postal money orders.
In violation of Title 26, United States Code, Section 7201.
COUNT FORTY-FOUR (26 U.S.C. 7201)
[TAX EVASION ]
The Grand Jury further charges that:
That during the calendar year, 1992, JILL SPENCER and DARREL SPENCER, residents of the Eastern District of California, had and received taxable income upon which there was owing to the United States of America an income tax of $6,945; that well-knowing and believing the foregoing facts,
JILL SPENCER and
DARREL SPENCER,
defendants herein, did willfully attempt to evade and defeat the said income tax due and owing by them to the United States of America for said calendar year by failing to timely make an income tax return on or before April 15, 1993, as required by law, to any proper officer of the IRS, by failing to pay to the IRS said income tax, and by engaging in affirmative acts of evasion; including but not limited to dealing primarily in cash, failing to keep proper books and records; concealing and attempting to conceal from the IRS the nature and source and extent of their income, structuring transactions to avoid detection of this income and assets by the government and advising business customers to use cash or postal money orders.
In violation of Title 26, United States Code, Section 7201.
COUNT FORTY-FIVE: (26 U.S.C. 7201)
[TAX EVASION ]
The Grand Jury further charges that:
That during the calendar year, 1991, DARREL SPENCER, a resident of the Eastern District of California, had and received taxable income upon which there was owing to the United States of America an income tax of $1,271; that well-knowing and believing the foregoing facts,
DARRELL SPENCER,
defendant herein, did willfully attempt to evade and defeat the said income tax due and owing by him to the United States of America for said calendar year by failing to timely make an income tax return on or before April 15, 1992, as required by law, to any proper officer of the IRS, by failing to pay to the IRS said income tax, and by engaging in affirmative acts of evasion; including but not limited to dealing primarily in cash, failing to keep proper books and records; concealing and attempting to conceal from the IRS the nature and source and extent of his income, structuring transactions to avoid detection of his income and assets by the government and advising business customers to use cash or postal money orders.
In violation of Title 26, United States Code, Section 7201.
DATED: <<Nov 29, 1993>> A TRUE BILL
<<Kathie V. Tuck>> ???
FOREPERSON
<<SIGNED>>
MICHAEL J. YAMAGUCHI
United States Attorney
App'd as to Form <<initialed>> <<initialed>>
AUSA's Teters and Carlucci-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-
<<End of Reproduction>>
There it is America, your wonderful "law abiding" government agencies at work. Not to mention your tribute (tax) notes (dollars) at work.
I'll go over a few points in the indictment and show just how far the IRS and DOJ have their heads shoved up their butts.
-=-=-
In Section 2(a) of the INTRODUCTION - DEFINITION, it reads:
"Title 26, United States Code" refers to the statutes and laws of the United States concerning, among other thins, tax liability."
Apparently the US Attorney had been smoking crack in his off hours at law school. Otherwise he would have known that *NO* statute in the entire 8000+ pages of the Internal Revenue Code (Title 26 USC) imposes liability. Also, there has surfaced evidence that several of the Titles of the USC have NEVER BEEN ENACTED INTO POSITIVE LAW! (yes, Title 26 is one of them) If that is true, then the IRS has been operating on COLOR OF LAW for a long time. There will be documents scanned into .GIF format that back this assertation next issue. If you can't wait, try to get into contact with me.
Also, remember those FOIA .GIFs that were in issue #4? One of them was specifically asking the IRS about "liability", and their response? "We have no records responsive to this request".
-=-=-
Section 4(h) of "The Scheme" says:
"That a TPCS member who was experiencing tax difficulties with the IRS and had been approached by an IRS agent or employee could force the agent or employee to back down and desist by filing a "common law lien" against the person or property of IRS agent or employee"
Now, remember what section 4 is all about:
"It was further part of the scheme and artifice to defraud that the defendants, and those acting on their behalf, made the following false and fraudulent pretenses, promises and representations..."
To my knowledge a "common law lien" isn't a fraudulent pretense, promise or representation. As detailed later in the indictment, several of these liens caused trouble for the IRS and their ilk.
-=-=-
Section 5(a) of "The Scheme" says:
"...the representations by PHILLIP MARSH, merely represented a false, materially incomplete, and misleading account of the tax laws of the United States, as the defendants well knew."
I didn't know that photocopying Internal Revenue Code sections or quoting relevant case law is "misleading".
Notice the ^^^ section. Seems like the DOJ and the IRS have some wonderful new technology that enables them to know exactly what people are thinking and their intents. How the hell do they know what the defendants know or do not know. Again, another reason why government employees should lay off the crack.
-=-=-
Section 5(c) of "The Scheme" says:
"...and those acting on his behalf (Marsh), falsely and fraudulently represented and implied that defendant DARREL SPENCER and the "technical support staff" of TPCS, including defendants GREGORY GALASKI and ROBERT SINGLETON were thoroughly familiar with the Internal Revenue Code and the applicable laws, regulations, court cases and procedures relating to the collection of federal income tax."
Here is that wonderful mind-reading technology again. They seem to know exactly what they do know and not know. I feel quite comfortable in the knowledge that in the matter of a few type written letters an indictment they can cast aside my knowledge and expertise on any given subject at a whim.
-=-=-
Section 7(a) of "The Scheme" says:
"In order to placate, appease, and mislead TPCS members who experienced
problems, failure or frustrations after purchasing and following the
instructions of TPCS, the defendants, and those acting on their behalf, would
routinely place the blame and responsibility for the failure of the "untax
program", and/or continued problems with the IRS, on TPCS members for not
explicitly following TPCS directions and/or would routinely place the blame
and responsibility on the IRS, rather than acknowledging that the <==|
procedures mandated by TPCS in this untax package and in its other |
instructions and advice, would not and could not relieve anyone of |
their tax liability or remove them from the tax system, as the |
defendants full well knew." <==|Read the last five lines carefully.
-=-=-
Before we go further, notice the words that are being used throughout the indictment. I could list many many examples of word play here but why bother.
-=-=-
Section 10(b) of "The Scheme" is farce. Read all the counts carefully. I can't go into detail on all of them, but i can't resist on a few.
Count #1. Hans Saier sends the IRS "untax documents" and both Phillip and Marlene Marsh are charged?
Count #2. Phillip Marsh sends a Hotel Invoice to the Hyatt and Marlene Marsh, John Campion, Gregory Galaski, and himself are charged?
Count #4 Mailing the Constitution is now illegal? (author almost threw up while reading this the first time)
All of these counts are ludicrous and outright gestapo persecution.
-=-=-
Section 2(a) of "The Dishonest Means and Methods"
"...encourage and assist other persons to cease filing income tax returns and to cease or resist compliance with any other lawful obligations relating to the collection of income and employment tax through the use of deceit, craft, trickery and dishonest means."
Since no IRS agent in any of the fifty states can give the true definition of "voluntary compliance", the passage: "resist compliance with any other lawful obligations" doesn't surprise me.
"Deceit, craft, trickery and dishonest means." Interesting words repeated over and over. I'm really impressed that those flunkies can use such colorful words.
-=-=-
Section 2 of "Overt Acts" says:
"...caused the first issue of The Connector to be produced and mailed from San Hose, California, to members of TPCS."
(The author waves goodbye to Freedom of the Press and Expression)
-=-=-
Throughout the "Overt Act" section of the indictment, several "Commercial Liens" were filed against IRS Agents, IRS CID Agents, US Attorneys, Judges, Magistrates, and other such vermin.
So we can't use the law to protect ourselves from the government now either? Maybe i should ask them to get help at Charter Hospital or something.
-=-=-
Section 20 of "Overt Acts" says:
"...The lien was filed against IRS personnel and the Federal Reserve Corporation."
I found that interesting.
-=-=-
The rest of the indictment charges the defendants with Tax Evasion, but we know that you can't evade something for which you aren't liable for in the first place. Not to mention that Title 26 isn't law. The reasons go on and on and on.
The DOJ and IRS want to minimize the amount of "non compliance" with their nonexistant laws this tax season. However, there are still other organizations out there, and more forming all the time.
The IRS began its propaganda campaign late December in warning the 1000+ Orange County, California residents (i know, bad word) to "come back to us".
This indictment is a sick joke. And the worst part of it, is that the Grand Jury didn't see this. Of course, they probably picked the best "brain-dead-tv-zombie-i-believe-what-i'm-told-slaves" of the lot.
It will be interesting to see how these defendants fair in the near future. I hope to keep getting information out.
Lestat De Lioncourt
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