FOR IMMEDIATE RELEASE FRIDAY, DECEMBER 5, 2003 WWW.USDOJ.GOV TAX (202) 514-2008 TDD (202) 514-1888 WASHINGTON, D.C. - Eileen J. OConnor, Assistant Attorney General to the Justice Departments Tax Division announced today that Keith Anderson, age 61, a former resident of Hoodsport, Washington, Wayne Anderson, age 63, a resident of Fresno, California, and Richard Marks, age 59, a resident of Los Osos, California were arraigned today on charges of wire fraud, mail fraud, conspiracy to launder money internationally, and six counts of international money laundering. Also charged, but not yet arraigned, is a man by the name of George Burke a/k/a George Kof, a/k/a George Chester, a/k/a Jim Cody.
On Dec. 10, 2002 an Eighty-Seven (87) count indictment was filed charging Keith Anderson, Richard Marks, and Wayne Anderson, together with Karolyn Grosnickle, age 60, a resident of Hoodsport, Washington; Richard Grosnickle, age 62, a resident of Hoodsport, Washington; Pamela Moran, age 41, a resident of Montrose, Colorado; James Moran, age 54, a resident of Montrose, Colorado; Tara Lagrand, age 50, a resident of Naples, Florida; Gary Kuzel, age 54, a resident of Woodbridge, Illinois; and Lynden Bridges, age 57, a resident of Wheat Ridge, Colorado, with conspiracy to defraud the United States Government in connection with the marketing of illegal tax shelters that placed customers funds offshore in Costa Rica.
In a separate count, Keith Anderson, Richard Marks, Wayne Anderson, Karolyn Grosnickle, Richard Grosnickle, Pamela Moran, and James Moran were charged with a conspiracy to engage in a wire and mail fraud scheme in connection with selling investments in a joint venture called Tax Magic. The defendants are also charged with 65 counts of aiding and assisting the filing of false income tax returns in connection with tax returns prepared by the AAA accountants. The defendants were also charged with ten (10) counts of mail fraud and nine (9) counts of wire fraud. And finally, the Indictment seeks the forfeiture of the Morans home in Montrose, Colorado and their 2000 Jeep. The indictment alleges that this property was purchased with proceeds from the sales of Tax Magic investments.
On December 4, 2003, a superseding indictment was returned which added George Burke to count 2, the conspiracy to commit wire and mail fraud in connection with one of the AAA tax shelters, and charged Keith Anderson and George Burke with mail and wire fraud stemming from their operation of an investment program sold to AAA clients called the Loan 4 program. The superseding indictment alleges that from 1997 through 2001, Keith Anderson and George Burke solicited and received approximately $21,000,000 from AAA members which they represented was to be invested at a rate of return of 4% every six weeks. It is alleged that the so-called Loan 4" program was a sham.
The superseding indictment also charges Keith Anderson, Wayne Anderson, and George Burke with conspiracy to commit money laundering and international money laundering. It is alleged that from 1997 through 2002, after the defendants received funds from AAA members that the AAA members believed were going to be invested, the defendants wire transferred these funds to AAA accounts in Costa Rica in order to promote AAAs Look Back program. Instead of being invested, these funds, totaling approximately $28,000,000, were circulated in and among several Costa Rican bank accounts in order to give the appearance that the AAA entity, La Maquina Blanca, was funding AAA members investment loans as part of the AAA Look Back program.
Keith Andersons brother, Wayne Anderson, 63, was convicted earlier in a Sacramento money laundering trial relating to Anderson's Ark & Associates. Wayne Anderson was sentenced on Nov. 14, 2002, to serve 59 months in prison, to be followed by a three year term of supervised release, and a fine of $ 25,000. Wayne Anderson was also ordered to forfeit an additional $100,000 and a new motor home that were seized in the course of the investigation. Richard Marks, 59, formerly of Sacramento, California, was also convicted in the Sacramento trial. Marks was sentenced on Nov. 14, 2002, to serve 81 months in prison, to be followed by a three year term of supervised release, and a fine of $25,000. A third defendant in the Sacramento case, Karolyn Grosnickle, 59, of Hoodsport, Washington, pleaded guilty to money laundering prior to trial, and was sentenced before Judge Karlton on Oct. 1, 2002, to serve 26 months in prison.
The charges contained in the indictment are only allegations. Defendants are presumed innocent unless and until they are proven guilty in a court of law.
The maximum penalty for wire and mail fraud is 20 years in jail and/or a $250,000 fine. The maximum penalty for conspiracy to launder money and money laundering is 20 years in jail and or a $500,000 fine.
Additional information about tax fraud schemes to watch out for can be found on the IRS Criminal Investigation website.
Source: US Department of Justice
