United States Of America, Oct. 9th 2013
Plantiff, Case No SACV13-1582
vs
Kenneth Elliot d/b/a Kae Insurance COMPLAINT FOR PERMANENT
Services, Inc., Vista Barranca, Inc., and INJUNCTION AND OTHER
Kae Consulting: Sea Nine Associates, Inc., RELIEF
and Ramesh Sarva
Defendants.
The United States of America, for its complaint against Defendants Kenneth Elliot d/b/a KAE Insurance Services, Inc., Vista Barranca, Inc., and KAE Consulting, Sea Nine Associates, Inc., and Ramesh Sarva, seeking a permanent injunction pursuant to 26 U.S. C. 7402 and 7408 to prohibit them from further promoting a fraudulent tax scheme.
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KENNETH ELLIOT
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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.
Posted by Lance Wallach at 1:24 PM No comments:
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Labels: Kae Consulting, Kae Insurance Service, Kenneth Elliot, Ramesh Sarva, Sea Nine Associates, Sea Nine Veba
HARM TO THE GOVERNMENT AND THE PUBLIC
Elliot has admitted in prior sworn testimony that there are at least 200 employer/companies that have participated in a Sea Nine VEBA plan, and the IRS is aware of 205 such entities. Elliot and Sarva continue today to promote Sea Nine VEBA plans, and Sea Nine appears to have obtained additional plan participants in 2012. And third parties with whom he has previously worked continue to recommend Sea Nine VEBA plans to certain of their customers.
Posted by Lance Wallach at 11:17 AM No comments:
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Labels: Kae Consulting, Kenneth Elliot, Sea Nine Associates, Sea Nine Veba
KAE_
Kae is the business name Elliot utilizes when he performs certain fee-for-service consulting work for SEA NINE or independently.
Posted by Lance Wallach at 10:32 AM No comments:
RICO Complaint Against AIG Tax Scheme
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LOS ANGELES (CN) - American General Life Insurance urged dozens of small business owners to buy voluntary employee beneficiary association plans, or VEBA plans, that the Internal Revenue Service has ruled are "illegal tax avoidance schemes," businesses claim in a federal class action. Lead plaintiff Ulti-Mate Connectors sued American General Life Insurance (AIG) and nine other defendants on Wednesday, alleging RICO violations, fraud, unfair competition, false advertising, aiding and abetting and other counts. According to Ulti-Mate, for more than a decade AIG has offered unlawful VEBA plans, which it calls "specialized whole life insurance policies." A high-level AIG executive allegedly told the plaintiffs' financial planner that the plans allow small business owners to make tax-deductible payments, and that they could dip into the plans, tax-free. When the financial planner inquired about the legality of plans, the planner was assured the program was aboveboard, the complaint states. "The problem is that the Internal Revenue Service (IRS) has repeatedly ruled that VEBA plans like the ones defendants established, promoted and administered do not comply with federal tax law, determinations that have been consistently upheld by federal courts. At all relevant times, defendants were well aware of the non-compliant nature of their programs," the lawsuit states. As early as 2001, the IRS informed AIG that the programs were illegal, Ulti-Mate claims, but it and the other defendants continued to offer the program. Ulti-Mate claims that small business owners learned "unpleasant truths" after the U.S. Department of Justice took legal action last year to enjoin program administrator/defendant Sea Nine Associates and the firm's employee, defendant Kenneth Elliot, from marketing the VEBA program. California has since suspended Sea Nine's operations, the lawsuit states. In time, Ulti-Mate says, owners realized that the plans were the "same or substantially similar" to tax-avoidance schemes, that their life insurance premium payments were not tax-deductible, that the claim that they could withdraw mo
RICO Complaint Against AIG Tax Scheme
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LOS ANGELES (CN) - American General Life Insurance urged dozens of small business owners to buy voluntary employee beneficiary association plans, or VEBA plans, that the Internal Revenue Service has ruled are "illegal tax avoidance schemes," businesses claim in a federal class action. Lead plaintiff Ulti-Mate Connectors sued American General Life Insurance (AIG) and nine other defendants on Wednesday, alleging RICO violations, fraud, unfair competition, false advertising, aiding and abetting and other counts. According to Ulti-Mate, for more than a decade AIG has offered unlawful VEBA plans, which it calls "specialized whole life insurance policies." A high-level AIG executive allegedly told the plaintiffs' financial planner that the plans allow small business owners to make tax-deductible payments, and that they could dip into the plans, tax-free. When the financial planner inquired about the legality of plans, the planner was assured the program was aboveboard, the complaint states. "The problem is that the Internal Revenue Service (IRS) has repeatedly ruled that VEBA plans like the ones defendants established, promoted and administered do not comply with federal tax law, determinations that have been consistently upheld by federal courts. At all relevant times, defendants were well aware of the non-compliant nature of their programs," the lawsuit states. As early as 2001, the IRS informed AIG that the programs were illegal, Ulti-Mate claims, but it and the other defendants continued to offer the program. Ulti-Mate claims that small business owners learned "unpleasant truths" after the U.S. Department of Justice took legal action last year to enjoin program administrator/defendant Sea Nine Associates and the firm's employee, defendant Kenneth Elliot, from marketing the VEBA program. California has since suspended Sea Nine's operations, the lawsuit states. In time, Ulti-Mate says, owners realized that the plans were the "same or substantially similar" to tax-avoidance schemes, that their life insurance premium payments were not tax-deductible, that the claim that they could withdraw mo
Notice 2007-83 - Abusive Trust Arrangements Utilizing Cash Value Life Insurance Policies Purportedly to Provide Welfare Benefits - 2007-45 I.R.B. 1 (transactions in which certain trust arrangements claiming to be welfare benefit funds and involving cash value life insurance policies that are being promoted to and used by taxpayers to improperly claim federal income and employment tax benefits (identified as “listed transactions” on October 17, 2007)).
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