Read about T. Bell.

A. David Wynn Miller

----- Original Message -----
From: Colleen Lloyd <justicewanted2001@yahoo.com>
To: .....
Sent: Tuesday, February 20, 2001 7:56 PM

I do this with a prayer that the Lord will do what has to be done and guide our actions, and with great reluctance, but also great resolve. I never thought I would be doing this, but I want to expose the truth about this fraud who teaches the "In the Truth" Law Procedures, David Wynn Miller's deception and I would like to have some press and radio on it, immediately and until he is called to repentance. Another Clinton we don't need. What we need is someone who will follow the Lord's program, not put his program above the Lord and deceive people. David Miller is so convinced that his language procedures are the only way, truth and light, that he told me, "Jesus spoke in fiction."

Anyone you know who would do a show where David will have to answer for his lies, which I will go into, or where people can bring issues relating to his deceptions forward for him to have to explain, please contact me at once at 435-632-2321. He will be in Bellingham, Washington Thursday the 23rd, and have a seminar Saturday and Sunday at the Red Baron Suites. I am planning on being there passing out what I have discovered about him, unless he corrects his mistakes publically. I am doing my investigation there to get certain proof I need, and I already have a lot of evidence.

If someone can arrange an interview with him for as soon as he gets off the plane, on the radio by phone, or otherwise, and find out when he will get to the airport and what flight he will be on, he can be investigated from the moment he arrives, which is necessary to get to the truth.

The reason I am contacting you, is that David has consistently trashed and failed to acknowledge Right Way Law, and ALL programs except his, INCLUDING THE LORD'S. He says his procedures disqualify everything else because it is all in fiction. He has made out those like Larry Becroft, Jural Society, who say ANYTHING against him or bring up challenges, etc. to be doing what they are doing because David is taking away their students and income. And now that I see the reality of who he is, and his capacity to confuse and destroy willfully people's lives for his own interests, I think I and the others who have information and who have been hurt by his lies have a right to be heard and people have a right to know so that the wrong can stop. I never thought that I would be called as a witness to discredit him, but I am very sadly, yet very LOUDLY saying that I will do it now.

I am Colleen-Lloyd-Miller, his wife. It is a "common-law" and unusual thing privately between us, which David insisted upon because at first he was so adamant against marriage and could not ever have anything in writing. Being that we both agree that the state is not a partner in the marriage and don't want a license, I said, I don't need it in writing, then, I want a marriage in our hearts and union of our lives to build it together, like Adam and Eve, no papers necessary then. He said, " I can work with that." And we were supposed to get a house...and he is the king of breaking promises.

And he would say he didn't want anyone even knowing about it at first, because he concerned someone out to get him would hurt me. But you could not hide it, and I didn't want to because I am so honest and open, and over the years, it has become pretty known to many that we are a couple, and we are openly very romantic and he pays bills and our phone and internet accounts, etc, and we will be addressed as a wife and husband in those often and at hotels, etc. The reason this is significant is because, since I found out that he was lying about emails that showed he was cheating, he has actually tried to deny that there is any relationship between us at all, and attacked me...like Clinton. It is absolutely chilling to me. The pattern of deception is in his work, too.

And there is more to it, and there were storms like men and women have and wrongs and forgiving and trying again to build a love that lasts. You know how it is. But he would not let me come and be in Milwaukee, because he said I would be unhappy and he was always gone on the seminars and never home, and he would see me more if I was out here, and flew me and had me come to the seminars whenever I could. RIGHT.

I knew that it was not right, and it caused me doubts and I constantly wondered and asked if he was seeing other women, which he denies TO THIS DAY he ever did in 5 years, in spite of the proof I now have, and even his family, friends and closest students telling me...and I wondered why it was that way, and had all the instincts you have that he was lying.

But you have to understand that David stands up there and professes to be all about honor and integrity and the truth, and can be very persuasive and manipulative to get what he wants, and you want to believe him and love and support him. You want to believe someone is about fighting to correct the corrupt courts, who is everyone's hope for...a Saviour?

I just found out, to my great horror, that he had been lying and cheating on me with not just one, but probably many women. I questioned information I got before, but he always denied it. This time I saw emails that proved it, and asked why. I have saved my emails. When I emailed the woman and asked what she meant by her statements, David began his defamation campaign, and still accuses me of being crazy and making it all up.

He tried to claim that Anthony Rees, the woman's ex-boyfriend, sent all of the emails to assassinate his character, because Anthony was involved in a conspiracy to destroy his program. Anthony has emailed me that he absolutely did not create the emails. Paul Newton's website has been created to show the falseness of the claims that people like Anthony investigated. Anthony suggests I go to the public forum rather than to court. I plan to file a complaint/claim against him and his seminar host, "Debbie Anderson" tomorrow for conspiracy and accessory in the crimes of fraud, malice, defamation, libel, reckless endangerment, criminal and willful negligence and adultery. The maliciousness is scary. I see in him the same pattern as we saw in Clinton, who David claims is "one of my students."

And that is why I feel that it is relevant, because of the way people follow him like it is a cult and look to him as some kind of leader, or Messiah-like figure, to the point where they are so blind they are willing to lie and attack anyone who brings forth the truth, and sacrifice that person to the cult and justify anything he does, regardless of any sense of moral integrity. I think he has put his program before the Lord's plan, and it is almost like he is the Creator of this sick religion which he calls law. I am their latest prey.

He is so convinced that his In the Truth language "procedures" are the be all and end all, that last year, when I made a very big step and told him how I wanted to share with him the importance of the Saviour, and my step I made to truly devote my life to the Lord and be willing to place Christ first, all he had to say about Jesus was, "Jesus spoke in fiction."

The Lord was not following David Miller's law procedures. David's plan was apparently superior to the Lord's. This is the arrogance that Satan had, and his downfall, and it is David's downfall also. I was full of the love for the Saviour and realizing how much the Saviour had done for us, and full of faith. I told him that if you believe in Christ, all things are possible, that if the Lord could raise Lazarus from the dead, the Lord would work other miracles. I wanted to bring the Lord into our relationship because I knew that a man and woman must have the spirit of the Lord between them and that is the central pivot, and that it would make everything all right. I wanted a happy home and marriage and family, which had been a struggle to get him to realize the importance of and honor a commitment to. He would say one thing one day, and act like he never said it the next.

What I wanted was to have a shared reverence for the Lord first, between us, because whenever two or more are you gathered in His name, he is there, and I could trust that and be happy. David only said that Jesus could have pulled off the Lazurus trick by faking the death. I have prayed so many times in this relationship to have the truth be made known about if David is a truthful, good man, because of all the attacks made on him and the things I see in my life with him.

I have been David's biggest supporter, and written articles about him every week in the Las Vegas Tribune (one was published on the front page of the American Bulletin) and helped him with seminars and stood by him when students and others brought to me their concerns about his false claims, and when I saw him doing things that I questioned as wrong. I believed he was a good person in spite of the things I heard, and gave him always the benefit of the doubt.

Now I know that he is a great deceiver, and the damage his deceit did to me and his hypocritical, arrogance and mocking, unrepentant attacks on me for seeking the truth are the reason why I see no other way at this point to combat his crimes but to expose him and call him to repentance. The only thing that he seems to understand is being called on the carpet before everyone publically.

I have given them every chance, over and over, to admit they are lying in saying that they did not create the emails which show they are involved in the liaison which they denied to me. They will not. She is a Canadian, and Anthony also discovered this liaison by the emails, after smelling a rat when she would not let him (her fiance) attend the seminar. She is the leader of the citizensvoice.org website which is Citizens Voice for Health Rights, allegedly a non-profit organization. Apparently she has a marijuana addiction problem and cannot go a day without a joint. Which makes you wonder where she is going to get it illegally in this country. She also, he says, has no job, but lives off the money from the seminar/materials/tapes, and lives with her mother in Kelowna Canada. She apparently got into trouble with Revenue Canada and whored her way into David's very busy bed when at a Bellingham seminar last March, to get to his "procedures" to get her out of it, so her silence is to make money and his interest is in keeping people quiet to keep the money coming in, I believe.

David told me to charge the students who's lawsuits he set me up to correct, $400 and to lie and tell them that I had spent 4 hours at $100/hour, when he would just fax me the paperwork from himself. I refused to do it, and thought, well he is just trying to help. He felt he was justified, since he had spent so much time developing it and they were getting so much. I felt it was fraud. Now I see the reality that he IS a liar.

The defamation began when he stopped paying my phone and internet -- when I found out he was lying and told people the truth. He and she refused to give me a statement that they did not send the incriminating emails or have an affair, and hassled me when I called for the truth. You would think they would want to know who had done it, wouldn't you, if not them?

I have not let up calling him (sometimes pretty pissed off) and demanding the truth and an end to the lie. I am a pit bull. His friends call me crazy. He says I am making it all up. His students have brought to me his false claims for years, and now I know.

 He is a liar. He says no one will follow a lie.

 I know the truth and it will set you free.

 : copyright/copyclaim: 02-20-2001:
 Colleen-Lloyd-Miller

    Here is a note from Dr. Ron Carlson about Miller:

Subject: [:David-Wynn-Miller Seminar Feb.24 and 25 in Bellingham WA] "THE BIGGEST CON ON EARTH!"
Date: Sat, 17 Feb 2001 10:39:20 +0400
From: "Ron Carlson" <ddscarlson@worldnet.att.net
To: ........

Good day Mr. [....].

It is important that you know what really happened when I used so-called technology by Miller.

At my hearing for arraignment and plea February 17, 1998, I used the "flag" issue and the approach that I would not join with the court pursuant to F.R.Civ.P. 12(b)(7). That day I left court having not joined with the court. However, the following day I was arrested by U. S. Marshals and incarcerated at Halawa State Prison with the presumed threat that I would be held as a threat to the state if I did not submit to the court's jurisdiction.

Prior to my arrest on Friday the 19th of 1998, I filed a "Title 42 Action" that was advocated by Miller. He will say that this is passe' now, but the reason I mention it was the fact that in a subsequent hearing the U. S. Prosecutor noted it and said that it was incomprehensible. Nothing else transpired other than the fact that I let the "42" action time lapse. Reason? Number one I could foresee it being held against me as a identified "tax protestor" as well as an activist for pure water in Hawaii locally, and the fact that I had been involved in many other initiatives regarding the return to Constitutional Rule of Law by the government. [My group was known as the "Phoenix Project Committee of 50 States" and aligned with Joe Stumph out of Utah. Morris Dees, a Khazarian Zionist B'nai B'rith Mosad agent, SUBVERSIVE, of the "Souther Poverty Law Center" (I am sure dedicated to perpetuation of "poverty" using law as a method to insure its existence [READ R. BUCKMINSTER FULLER'S GRUNCH OF GIANTS, ST. MARTIN PRESS, 1983]) identified our "group" as a militia support group in a document regarding what he identified as "terrorist organizations."]. The second reason was that I had seen the irrationality of the idea that I would ever prevail in any of the controlled Zionist courts. It is impossible at this time but may be appropriate as we uncover the lies.

David Miller has never won in court to my knowledge other than by his own say so. Heresay, I say! Where is the meat? Ask for proof positive regarding the success of his technology. Court cases... Testimony... Documentation, not just his words.

His tech. did not in fact work for me. He has noted in his seminars that I utilized his work successfully, but this is not so. I was found guilty of five counts of tax evasion, 26 U.S.C., section 7201. I had not filed since 1983 and held the position that a citizen in the U.S. was not subject to income tax nor employment tax (they are different you know) since for the former there must be foreign earned income, and the latter an agreement with the employer pursuant to 26 U.S.C., 3402p(2). My defense was the "condition of the mind."

A final note. A person I am with at the half-way-house (the place one is held after prison until reaching his or her's mandatory release date) filed a Writ of Habeas Corpus using Miller's most current work. Judge Gillmore said if she persisted in the issue, she would order a psychological assessment of Ms. Ottley and have her committed if necessary. Does not sound good to me. I encouraged her to withdraw the HC and file a more rational action. I don't know what she has done. Nor have I seen here around the half-way-house either. The court may have taken her already.

David may be correct in many of his ideas, but half truth will only get one in trouble. I may be a testimony of what did not work, ask him for testimony for when it did work. Be persistent. Get the facts.

Best of luck to you and your fellows.

Dr. Ronald S. Carlson
4211 Waialae Avenue
Suite 400
Honolulu, Hawaii 9681

Here is another:

 From: Ron Carlson <ddscarlson@worldnet.att.net
 To: .....
 Subject: Re: another reply from DWM
 Date: Wednesday, February 21, 2001 1:00 PM

[addressee],

 Previously I wrote:

 Bruce...Ron did not win his case! I am Ron. Read his (David Miller's) statement: "Bruce, Ron won his case and was arrested for not filing tax returns for 5 years before he met me and had only hours of training before he went to court 3 years ago." With sentence construction like that I would have flunked first grade! (By the way, I did flunk first grade.)

 1) I was arrested the day after a hearing in federal court where I presented the "flag position" pursuant to F.R.Civ.P. 12b(7) joinder. I did not join with the court by using a phrase, after having been asked by Magistrate Judge Yamashita, "are you Mr. Carlson," that went something like this, "I cannot understand a foreign language." I walked out of court that day thinking I had won. However, David nor I were aware that what I had done would simply lead to an arrest to gain jurisdiction. You know, jurisdiction by "law of the gun."

 2) I had not filed income tax forms since 1983. My position was, and still is, that a citizen of the United States of America, living and working within the several states of the Union of the states, having domestic earnings, is not the "subject" of the income tax set forth in the IRC (Internal Revenue Code). Additionally, "employment tax" as distinguished from "income tax" is a voluntary matter as may be corroborated by a read of 26 U.S.C., section 3402(p)(2). Only citizens of the United States of America with foreign earned income are subject to an income tax of 30%. And, this may be found by looking at 26 U.S.C., sections 1461, 1441, 1442 and 1443. The "withholding agent," sec. 1461, may be you or me if qualified by circumstances.

 3) I had read Miller's work and studied it for a year before I met Miller personally. He was here in Honolulu working with some of the Hawaiian Sovereignty People. He had also interacted with a gathering in Tehachape', California, being interviewed by one Rick Martin, who was at that time an investigative journalist with CONTACT NEWSPAPER. (Rick is no longer associated with contact. He too turned on the CONTACT NEWSPAPER, stole the reader list, bank accounts, equipment, corporate records, destroying other records.) I was not new to Miller's work. I had known that we were under emergency powers statutes by my own research. See the work of Dr. Gene Schroeder and others on the "War Powers Act." Or, look up "Banking Holiday" in Black's Law, 5th Ed., and see that pursuant to 12 U.S.C., Section 95(b) we are under martial law via the Banking Holiday Act. This may be verified by the "yellow fringe flag" flying in the courts and other public domains. David is not the first to claim this issue.

 4) We hosted a two day seminar in my office with Miller as speaker. We spent a good 20 hours of study in his understanding. The material sounded good, at least at first blush. Anything sounds good when one is under indictment and one is also prone to grasping at straws. I still hold that without verification of wins, that the technology is useful, people corroborating having won, there are no wins. Where is the meat? Have those who have won come forth as representatives of his technology. Will people sign testimonies that they won using Miller's approach? I have never talked to anyone who has won; but, I will gladly recant and apologize for this which I speak when shown otherwise.

 5) Lawyers do not help, neither will "pro se" litigation. Once indicted by the Federal, one is dead meat! Only a "payoff" at the highest lever, such as we have seen with Marc Rich, will get one off that hook. There is a 98% conviction rate with the Federals, and I met banking wizards, giants, at Federal Prison Camp Nellis who contested their indictments for as many as 10 years with top lawyers, but still lost. When you are targeted, that is that on that!

 Again, ask for those who have won to come forward. Insist on it!!! Using Miller's writings as they are will only insure commitment to a psycho ward. Judge Gillmore threatened to do that with Ms. Ottley regarding her filing of a "Win Miller Habeas Corpus" just two weeks ago here in Honolulu. As I reviewed his recent work, I was amazed at its incomprehensibility. Truth is simple and uncomplicated!

 My sense is that Miller is a counter-intelligence-agent both figuratively and literally, for his writings are unintelligible, and I suspect he has not true intelligence available to him. BEWARE!!!

 Dr. Ronald S. Carlson
 

 -------From: Jeremiah Knight <jeremiah@shuswap.net
 To: Ron Calson <ddscarlson@worldnet.att.net
 Subject: another reply from DWM
 Date: Wednesday, February 21, 2001 10:10 PM
 

 ----- Original Message -----
 From:
 To:
 Sent: Tuesday, February 20, 2001 1:19 PM
 Subject: Fw: Fw: [:David-Wynn-Miller Seminar Feb.24 and 25 in
Bellingham WA] "THE BIG...

 ----- Original Message -----
 From: DWMLAWPRO@aol.com
 To:
 Sent: Tuesday, February 20, 2001 6:50 AM
 Subject: Re: Fw: [:David-Wynn-Miller Seminar Feb.24 and 25 in
Bellingham WA] "THE BIG...

 ron is a friend of mine and he was the one who who his case in honolulu and then was kidnapped and taken to oklahoma under a different name so we could not find him. he is a dentist and is following everything-else with a lawyer. and all the fiction is telling him to use fiction. dave

 THE ABOVE IS A FICTION!!!

 I was never kidnapped. I did not win my case. Miller never looked for me. I was toast within the Federal Bureau of Prisons. They take political prisoners like me to Oklahoma Transfer Center and then warehoused in one of their "camps."

 Ron Carlson

    Here is a note that I received from another researcher in the movement and it concerns another case where Miller defrauded people:

 Hi Larry,

In January, I received a frantic call from folks who winter in Arizona.  Four couples had been accused slander. To me, this is a fairly simple case to answer as the burden of proof is to show that the alleged slanderers knew that the information was false.  Unfortunately, these folks  got David Miller.  They're embarrassed to tell me how much they paid this charlatan. He prepared an unintelligible writ that focused on printing flags  and two other symbols including a United Nations graphic on the upper margin of the pleadings. He also told them to use the following format John: Truman, Doe. He advised them to respond to questions if they were parties to the suit by saying that they were, "John: Truman, Doe." For all other questions, to say, "We stand on our pleadings." The pleadings were typed in  uppercase - about eleven pages of gobbledygook including accusing private individuals of genocide.  He also instructed them to refuse to answer questions or question the opposition. The result was, these eight ordinary people got clobbered with a 6.8 million dollar judgment. When they  complained to Miller that his stuff had not worked, he informed them that they had nothing to worry about, he obtained a judgment in the World Court, assigned court Zambia for seven hundred million dollars. When I got their  call, they were one week away from a sheriff's sale!  Oh my, why do these people wait until the eleventh hour? I got a call last night at 10:17 PM from someone who has to be in court today on a payment plan!  Oh well, for the Arizona folks, I prepared a motion to vacate as a stop gap to have time to study and prepared a collateral attack which enabled me to prepare a procedurally proper notice of lis pendens. They got both filed and although the sheriff's sale went forward, the sheriff, like Moses with the tablets, held up the lis pendens for all to notice.  I prepared a collateral attack,  citing among other things, lack of proper notice and advised the folks that a check of the World Court of Justice confirmed that no case had been filed on their behalf and would be absurd anyway. I have advised them to file a consumer complaint with the Arizona Attorney General against Miller for  fraud, but for some reason, they are reticent to do so. Monday, the  opposition defaulted on the collateral attack. When the ink is dry on the order declaring the judgment void and vacated, I hope to rely on you to spread the story, which of course, I'll be glad to verify for you. David  Miller must be stopped. Not everyone Miller has bamboozled is as fortunate as the folks in Arizona appear to be.

       Rich

    I received the above e-mail when I sent out on the Net on April 3, 2001 a story about a call I received when I first walked into my office that morning. During this phone call, a lady in Musgogee, Oklahoma, told me that her husband was in jail as a result of using Miller's "technology." When this unfortunate soul was indicted by the feds in Tulsa, he contacted Miller for assistance. Miller prepared some pleadings for this defendant and then lead him to believe that when he was tried, someone would be there to assist him. When trial started, nobody showed up. This defendant defended himself by examining the witnesses using the "who has the claim against me" argument. He also asked the witnesses whether the party on trial was him or some other party whose name was in CAPITAL LETTERS. This fellow was quickly convicted.

B. Ken Hunter

August 14, 2000 Update: Within the last couple of months, people I do not know have called to tell me that Ken Hunter died in a car wreck in Canada more than a year ago. These callers told me that Hunter's heirs kept his death concealed so that they could administer and close his estate. Personally, I have grave reservations about this alleged death of Ken Hunter, one of the biggest conmen on earth.

It now appears a fellow named William Shepherd has stepped into Hunter's shoes. Shepherd publishes a rag named "The Hornet" and solicits advertisements for his company, K & L Investment, Inc. His phone number is a Nevada number of 775-887-3641, and his e-mail address is "thehornet@earthlink.com". The issue of the Hornet that I read indicates that Shepard is really Hunter. So much for Hunter's alleged death. The Hornet "newsletter" uses defamation as a marketing tool.

Recently, "Shepherd" engaged in an e-mail exchange with a person I know. Here is what "Shepherd" stated, including his foul language:

You're as stupid as stupid can get. I purchased a lot of material from the Hunter estate , and it did include the use of an "aol" account.  I have never changed it.  I have the permission from the Hunter family representative to use the material from Ken Hunter and his name.  You really must be stupid.  Your one of those people that go to the tax meeeting and spread rumors, aren't you?  If you're spreading rumors about Ken Hunter, give me your name, and I'll give it to the lawyers for the family.  Matter of fact I can trace backwards and come up with your name and address.  No one asked you to believe in  the Hornet, you stupid mother-fucker.

    Be careful with Shepherd. In the past, he operated a web site named The Hornet (now off the Net), where he touted his tax program as conferring great tax benefits. His program had a cost:

This service is $5,000.00 and we want it up front. Please do not call us claiming that you can bring in lots of clients if we do yours for free. Same goes for "lots of people watching my account" do me for free, and I'll pass it on. We've heard every story there is. Our story is simple - we are very successful - we want our money up front - cash - check - money order.

He claimed that he could be trusted:

I, William Shepherd, will not do business with anyone that I believe is a con-artist, and I will not print an article that I believe is false/or misleading. .... I WILL PRINT THE FACTS AS I KNOW THEM.

    But, his legal argument as seen from his previously posted web site promoted the losing argument that if one is paid with debt (Federal Reserve Notes), such does not contitute income, the premise for this contention being the case of Don Williams Co. v. Commissioner, 429 U.S. 569 (1977). However, the Williams case (which Shepherd does not quote) would appear to not support his argument because the Supreme Court stated in this case as follows: "A check, on the other hand, is a direction to the bank for immediate payment, is a medium of exchange, and has come to be treated for federal tax purposes as a conditional payment of cash."

April 25, 2001

Late Breaking News About Ken Hunter

Regarding Ken Hunter.

I am one of Mr. Hunter's victims. I say victim because I did believe he had some of the right things going in his program and I spent a lot of money (thousands of dollars) and gave him a power of attorney at one time. I have certainly come to understand how his program is designed to appeal to those of us who are not up to speed on the issues involved here, nor are ready to make the commitment needed to have even a remote chance of success. I am now of the belief that the industry that has grown up around the tax freedom movement is just a little removed from the porno industry.

Hunter is not too much worse than some of the others in the industry. Many of the sites you find are serious if unwise in their beliefs. You bear the ultimate responsibility for your decisions, the gurus won't be there when the feds come to visit. Hunter in fact, decided the water was getting to hot and took a dive (faking his death I believe) so he wouldn't have to face up to his victims.

I must say that his representation was minimal and incomplete, filled with half truths and outright mistakes, was ineffectual, and required constant monitoring to see if the material he wrote was readable. After a few thousand dollars, I gave up on him and I would have nothing to do with him now. I would recommend you avoid him and find more responsible people to assist you in your efforts.

Remember, there are NO magic bullets in this arena. There are lots of sources of good information, but you are on your own when you challenge the feds. You need someone far more astute than Mr. Hunter unless you just enjoy throwing your money and life away.

C. Richard and Bridget Jones

 "A ‘loan procurement program' promoted to desperate or gullible persons generated over $11 million in procurement fees for Bridget and Richard Jones. No loans were ever procured and no taxes were ever paid on the fees received. Mrs. Jones was convicted of wire fraud, obstruction of justice and conspiracy. After failing to appear for sentencing, Mrs. Jones was apprehended and received a twenty-five year prison term.  She appeals her convictions and sentence, raising a variety of arguments, and we affirm.

 "Bridget C. Jones and her late husband, Richard L. Jones, operated what was termed an advance fee loan program. For a $4,000 fee paid up front, they promised to arrange a $100 million loan for the applicant. From the standpoint of Bridget and Richard Jones the program was quite successful.  By April 15, 1986, (the date Richard died) the couple had accumulated more than $10 million from procurement fees received from approximately 4,000 clients who joined their programs.  The money generated from this scheme was placed in more than 100 banks located throughout the United States. No taxes were paid on any of the fees received by Mrs. Jones and her husband. Not incidentally, no loans were ever arranged.

 "In early 1986, Bridget and Richard Jones learned that the government had been subpoenaing records from their bank accounts. This news prompted them to take steps to move the money in those accounts outside the United States. To accomplish this international transfer of funds Mrs. Jones and her husband sought the assistance of Joan McIntosh and a Swiss banker named Harry Wanke. McIntosh claimed to be in the business of protecting people's money from being taxed. A plan was developed whereby Richard Jones would write checks on all his bank accounts and make them payable to sham corporations. The checks would be given to McIntosh, who would deposit them in a bank account she controlled in Denver, commingling them with other funds in that account. From the Denver account McIntosh would then move the funds to New York where Wanke would deposit them with a bank having a correspondent relationship with Wanke's bank in Zurich, Switzerland. Wanke would then arrange for the funds to be wire-transferred from the New York bank to his Swiss bank. No reporting or disclosure of the actual ownership of the funds was to be made.

 "Bridget and Richard Jones had various bank accounts in Bloomington, Illinois, the base of their operations. Prior to his death and consistent with the plan to move the funds out of the country, Richard Jones depleted his bank accounts outside of Bloomington by writing multiple checks in amounts of less than $10,000 payable to dummy corporations. These checks totalled nearly $6 million. In late March and early April of 1986, Mrs. Jones and her husband sent $500,000 of the checks made payable to the sham corporations to McIntosh. On April 12, 1986, Bridget and Richard Jones, McIntosh, Wanke and others met in Chicago. Mrs. Jones and her husband decided that of the $500,000 sent to McIntosh, $200,000 would be used to test the system devised for getting the money to Switzerland. The balance of the $500,000 would be used to establish trusts.

 "Three days later Richard Jones died. A week later, a federal grand jury subpoena was served on Mrs. Jones directing her to produce records relating to the loan program. After receiving the subpoena Mrs. Jones directed that the subpoenaed records be removed from her house, microfilmed and then burned. Although she was given immunity for the act of producing the records of the loan program, Mrs. Jones stated that she had no intention of turning the records over to the grand jury.

 "During this time, the Internal Revenue Service made two jeopardy assessments against Richard Jones' estate. The first assessment in the sum of $3.8 million was made in middle or late April of 1986. The second assessment for $10.25 million was made in the middle of June of 1986. Bridget Jones received notifications of the levies and was heard repeatedly to say that she wanted to move the money outside the United States to avoid seizure.

 "After Richard Jones' death, Bridget Jones assumed sole control over the operations of the advance fee loan program. She also pursued the scheme to move the untaxed money outside the United States to prevent its seizure by the Internal Revenue Service. On May 7, 1986, Mrs. Jones met with McIntosh in Denver, Colorado, and gave McIntosh an additional $239,000. Mrs. Jones directed her to funnel $100,000 to the overseas bank accounts and to retain $139,000 as an escape fund for Mrs. Jones and her family.

 "Seven days later on May 14, 1986, Mrs. Jones met with Rupert Henry and Robin Baily in Miami, Florida. The purpose of this meeting was to arrange the transfer of approximately $290,000 out of the country to bank accounts in Panama.

 "On May 21, 1986, Mrs. Jones divided the remaining checks written to the dummy corporations into two groups. Mrs. Jones directed that one group of checks totalling $2,841,172.10 be given to Rupert Henry for deposit in the Panamanian bank accounts. The second group of checks, totalling $3,024,627.48 was given to McIntosh for deposit in the Swiss bank accounts.

 "The advance fee loan program continued to generate fees. On May 27, 1986, Mrs. Jones received an additional $1 million from the loan program brought in subsequent to her husband's death. Of this income to Mrs. Jones, approximately $800,000 was in the form of checks. Mrs. Jones directed that the checks be converted to cash without the filing of any Currency Transaction Reports with her name on them. However, the transfer of the cash to Panama could not be arranged and Mrs. Jones decided to move the cash outside the United States through McIntosh and Wanke. At Mrs. Jones' direction, $500,000 in cash was given directly to Wanke in New York. Wanke agreed not to disclose Mrs. Jones' identity on any Currency Transaction Reports. Wanke received the $500,000 in cash in New York and was arrested.

 "Mrs. Jones was charged with one count of conspiracy in violation of 18 U.S.C. Sec. 371;  four counts of wire fraud in violation of 18 U.S.C. Sec. 1343;  and one count of obstruction of justice in violation of 18 U.S.C. Sec. 1503.

 "After trial, the jury found Mrs. Jones guilty on all six counts. The district judge set the case for sentencing and agreed to release Mrs. Jones pending sentencing. Mrs. Jones fled and remained at-large for over two and one-half years. After being apprehended and returned for sentencing, the district judge sentenced her to twenty-five years imprisonment."

     I have seen mimics of the Jones program since then, so scam artists continue to thrive. But what happened to the money in the Jones program?

D. The "railroad bonds" scam

       By Edward L. Carter,  Deseret News staff writer

PROVO — Controversial Utah County sheriff candidate Richard Mack — a self-proclaimed opponent of the federal government — contends that the FBI, CIA and local politicians may be conspiring to help incumbent David Bateman defeat him at the polls in Tuesday's Republican primary. But another scenario is that a search warrant served at American Institute for Research, the company where Mack has worked since August, was connected to a Securities and Exchange Commission lawsuit filed Thursday in federal court.

The suit alleges three Utah bond dealers — Albert E. Carter of Provo, Eunice Polatis of South Jordan and her  son, Kelly Polatis of St. George — reaped millions of dollars selling allegedly worthless bonds over the past  several years. Carter operates American Institute for Research, which is also known as American Institute of  Reboundology.

Mack, whose 1994 lawsuit challenged the background check requirements of the Brady gun law all the way to the Supreme Court, said a dozen FBI and CIA agents Thursday served a search warrant at his company. Mack has worked as a consultant, primarily selling mini-trampolines and asset-protecting trusts, at the company since he moved to Provo from Arizona in August. "When you go around, as I have, slamming the federal government, you're going to offend some people in high places," Mack said Thursday night at a hastily called news conference.

Mack said the agents arrived at the Provo business Thursday at 10 a.m., while he was in Springville putting up campaign signs. They stayed for approximately six hours, including an hour long interview with Mack, and confiscated files and computer hard drives, Mack said. He alleged that the serving of the search warrant was motivated by a desire on the part of federal officials to see him lose to Bateman Tuesday. Mack also said that Utah County sheriff's detective Jeff Robinson and Utah  County Attorney Kay Bryson somehow were involved in a conspiracy against him. Bryson called the charge ridiculous. "He apparently has a very active imagination," Bryson said. "It's not something we have done. We know nothing about it."

Sheriff's Lt. Doug Witney, a former candidate for Utah County sheriff who lost to Mack and Bateman at the Republican nominating convention several weeks ago, said that neither he nor Robinson — both of whom are assigned to the white-collar crime investigative division of the Utah County Attorney's Office — is involved in an investigation of Mack. "Where does he get the idea that we've got the power to orchestrate this?" asked Witney. "The guy is delusional."

Mack did not offer details about his relationship with Carter, although both apparently were named on the search warrant. Mack said he has not been charged with any crimes in connection with his work at American Institute for Research.

Carter is a ardent tax protester. In the early 1990s, he ran a business called the American Institute for the Republic, a company that helped people research the IRS and the Federal Reserve to "protect your rights as sovereign citizen." Carter compiled an 88-page resource book titled "The Internal Revenue Service Investigated," which urges people to declare themselves "nontaxpayers" and be prepared to defend their position. Carter also ran an unsuccessful campaign for Provo mayor in 1993. Attempts to reach him Friday were unsuccessful.

Mack said federal agents questioned him about details of the company and about federal income tax evasion. "I said, 'How could that possibly involve me?' " Mack said. Mack told the Deseret News several weeks ago that he pays his income taxes grudgingly and does it primarily to avoid going to jail. He said the federal agents then asked him about some "worthless" bonds that were connected to American Institute of Research. When Mack told the agents he thought the raid was politically motivated and was orchestrated to thwart his bid for sheriff, they told him that was not correct. Given the fact that Carter was named in the SEC complaint filed the same day as the raid, Mack's claims of political persecution seem far-fetched.

"I just find it ludicrous that there could be a conspiracy involving all the people (Mack) has named," Bateman said. "I think all you have to do is think about it for a minute or two. It's ludicrous." Bateman said Mack's conspiracy charges are consistent with a pattern of grandstanding the former Graham County, Ariz., sheriff has exhibited in the past. Mack typically tries to deflect responsibility and place blame on others to his own benefit, Bateman said.

Federal regulators said the bonds sold by Carter and two others were issued by a railroad that went belly up last century. They say bonds issued by the Chicago, Saginaw & Canada Railroad Co., which filed for bankruptcy 122 years ago, might be worth around $30 to those who collect old certificates but not the $150,000 that some people allegedly have been paying. The same goes for notes issued in 1870 by the East Alabama & Cincinnati Railway Co. and in 1838 by  Mississippi. "These bonds were being sold all over the place, not just in Utah," said Ken Israel, who heads the SEC's Salt  Lake office.

Carter allegedly told investors that each Saginaw bond was worth approximately $91 million, each Alabama  bond was valued at about $400 million and each Mississippi bond $79 million. According to the SEC, Carter told investors that the issuers remained obligated to pay on the bonds and the notes continued to accrue interest.

        Deseret News staff writer Dennis Romboy and The Associated Press contributed to this story.



                      Friday, June 19, 1998

  SEC Claims Utahns Cheated
  Gullible Investors

      BY STEVEN OBERBECK
      THE SALT LAKE TRIBUNE

For those who have not heard, the Chicago, Saginaw & Canada Railroad Co. filed for bankruptcy 122 years ago.  That means the bonds once issued by the defunct railroad  are not worth a lot of money -- as little as $30 to those who collect old stock and bond certificates.  Saginaw bonds are certainly not worth the $150,000 that some people have been paying. The same goes for notes  issued in 1870 by the East Alabama & Cincinnati Railway Co. and in 1838 by Mississippi.

Federal regulators Thursday cracked down on what they contend was a scheme to peddle virtually worthless old  railroad bonds to gullible investors, who were told they were potentially worth millions.  The Securities and Exchange Commission (SEC) in a lawsuit filed in Utah federal court said three Utah bond dealers -- Albert E. Carter of Provo, Eunice Polatis of South Jordan and her son, Kelly Polatis of St. George -- reaped millions of dollars selling the notes the past several years. "These bonds were being sold all over the place, not just in Utah,'' said Ken Israel, who heads the SEC's Salt Lake City office.

One of the dealers, Carter, allegedly told investors that each Saginaw bond was worth approximately $91 million, each Alabama bond was valued at about $400 million and each Mississippi bond $79 million. According to the SEC, Carter told investors that the issuers remained obligated to pay on the bonds and the notes continued to accrue interest.

Carter could not be reached for comment. Salt Lake City lawyer Max Wheeler, who is representing Eunice Polatis, said his client only sold the bonds as collectible memorabilia. "She provided an affidavit to buyers that said the bonds did not have any value other than as historical documents,'' Wheeler said.

For whatever reason, a thriving market seemed to be developing for Chicago, Saginaw bonds.  An affidavit from a Texas collector, David Beach, said he bought a box of up to 800 bonds from a museum in Grand Rapids, Mich., paying about $25 each. Several years ago, Polatis bought them from him for $35 each, he said. "I have been contacted by people offering several  thousands of dollars for each [bond],'' he said. "I was told by people I considered middlemen that some of the bonds were possibly being used by foreign companies to prop up their financial statements.'' About 18 months ago, said Beach, Polatis called saying she was looking for more Chicago, Saginaw bonds, and he sold her two for $12,000 each.

In another affidavit, George H. LaBarre, a New Hampshire dealer in historic and collectible stock and bond certificates, said that in 1996 he sold Eunice Polatis 10 different samples of bonds issued by old railroad and mining companies.  LaBarre said he also sold her 207 "pieces'' of Chicago,  Saginaw bonds for $175 each for a total of $36,225. "That is what she does,'' Wheeler said, "she buys and sells old stock and bond certificates as collectibles.'' Wheeler said Polatis sold bonds to Carter, but "we really do not know what he did with them.''

The SEC's lawsuit contends Polatis and her son made more than $3.5 million selling Saginaw bonds through a company in California that authenticated and valued the notes. Federal regulators are asking that the three defendants be barred from violating federal securities laws and return any illegal gains they realized from the sale of the bonds. Wheeler said the old certificates, despite the SEC's contention, are not securities. "Maybe the SEC should have investigated Mark Hoffman for selling securities,'' he said of the notorious historic documents dealer, turned forger and bomber serving life in prison.

 © Copyright 1998, The Salt Lake Tribune

E. Phil Marsh
Marsh died April 16, 2002

F. Leroy Schweitzer

"The government introduced evidence showing that between 1988 and 1993, Wells engaged in a large tobacco fraud conspiracy. The IRS conducted an audit of Wells and concluded that he had a substantial tax liability resulting from the unreported proceeds of the fraud. Thus, the IRS issued an assessment against Wells for approximately $1.8 million, and assigned to revenue officer Priscilla Smith the enforcement responsibilities. In October and November 1993, revenue officers Smith and Teresa Varnell issued tax liens on several properties that Wells either owned or controlled.

"In November 1995, Wells and parties close to him began to send Smith and Varnell a series of documents relating to their enforcement efforts in connection with Wells' IRS assessment. On November 11, 1995, revenue officer Smith received a document captioned 'Non-Statutory Abatement' from Wells' daughter, Doris Brantley, in response to Smith's attempt to schedule an appointment with Brantley to discuss the status of some real property believed to be owned or controlled by Wells. The Non-Statutory Abatement alleged that Smith's contact with Wells had been illegal, and it threatened Smith with civil and criminal liability. The envelope in which it arrived bore Russell Dean Landers' return address.

"On December 20 and 21, 1995, revenue officers Varnell and Smith, respectively, each received an 'affidavit' and a 'claim and demand letter' from Wells, himself. The letters discussed the dollar figure of the IRS jeopardy assessment. The accompanying affidavits threatened action against the officers and threatened liability of $1 million in pure silver if the revenue officers did not release IRS tax liens filed against property associated with Wells.

"On January 5, 1996, Wells, Landers, and others attended a two day seminar presented by the Freemen, including Leroy Schweitzer. A portion of the seminar focused on the use of instruments known as comptroller warrants. Comptroller warrants are fraudulent financial instruments that, to some extent, look like legitimate financial instruments.

"Timothy Healy, an FBI Special Agent who infiltrated the Freemen organization, testified that Schweitzer warned class members that they could be arrested if they used the comptroller warrants, and that they should use a compilation of documents called 'proof packs' to establish lack of fraudulent intent. Virtually none of the warrants were being accepted.

"Persons attending a Freemen conference could acquire as many as five comptroller warrants for $100; additional comptroller warrants cost the purchaser $100 each. Wells acquired several warrants during his stay in Montana, some of which had face values as high as $3.7 million. Each was issued jointly to Wells and a third party payee. During November and December 1995, Wells told associates that he could arrange loans for them. He then created lists of those to whom he would negotiate the warrants, which included the acquaintances as well as his creditors. Schweitzer's usual practice was to send Wells comptroller warrants whose face values were twice the amount requested. Soon after Wells returned to North Carolina, he distributed several of the warrants to acquire money. Testimonial evidence established that Wells distributed the following warrants in January, 1996, alone: on January 7, to Eastern Auto Sales for $155,704.00; on January 9, to Royster-Clark Corp. for $1,400,060.00 and to G.R.M. Enterprises for $770,000.00; on January 10, to Taylor Construction Co. for $433,478.00, to Heritage Bank for $7,778.14, to Simba Tech Auto Sales for $424,000.00, and to Travelinks for $384,000.00; on January 11, to the Internal Revenue Service for $3,705,858.00,3 and to Centura Bank for $9,898.24; and on January 26, to Centura Bank for $21,074.00.

"Wells sent cover letters along with the warrants to notify creditors that the warrants were intended to satisfy debts owed to them. Any additional funds were to be refunded to Wells. According to the letters, failure to refund excess amounts would constitute 'criminal con- version' and trigger the obligation to pay high interest rates.

"In January, 1996, Wells and Landers sent Officers Smith and Varnell documents captioned as 'true bills.' The 'true bills' alleged that the revenue officers had placed illegal restraints on Wells' property and directed them to sign the documents to acknowledge their liability. The documents further stated that failure to comply within 10 days would result in the officers being held personally liable for $100 million in 'silver coins' to Wells. Liability was to extend for 99 years.

"Wells had begun hearing of rejections of the warrants before he had even distributed any of his own. In one instance, Landers had received notice from the Iowa Department of Human Services that it had rejected as invalid a comptroller warrant Landers had submitted to it. Landers responded to the rejection with a January 2, 1996, letter and provided a copy of his letter to Wells.

"When Wells began distributing his comptroller warrants, he also received notices of rejection from banks. On January 12, 1996, he received two rejections. The next day, Wells was notified by mail of a rejection. During the latter half of January, Wells received six more rejections. He received still more rejections in February, including a rejection by the IRS.

"Prajesh Patel, one of Wells' business associates, had more success. On January 18, 1996, he successfully deposited the Travelinks comptroller warrant as a result of the bank's errors. Wells often called Patel for information as to the status of that warrant, and was pleased that it was accepted.

"Officers Smith and Varnell were 'summoned' to appear before 'Our One Supreme Court' in late January, 1996. The summonses informed them that the 'Court' had entered $100 million judgments against each revenue officer personally. The officers were further directed to appear before the Our One Supreme Court on a specific date. Wells signed the summons, indicating that he was the complainant and 'justices' of the 'court' also signed the summonses.

"The revenue officers later learned that the Our One Supreme Court was a tribunal associated with the Montana Freemen Organization that purported to hold trials, and enter judgments against private citizens and public officials. Smith also learned of plans by the Freemen to kidnap and kill a judge, and Varnell learned that the court had marshals upon whom they conferred powers of arrest. After learning those things, Smith and Varnell became afraid.

"Now that the Travel Links account was open, Wells ordered Patel to write a series of checks against the account on Wells' behalf. Patel followed Wells' order, writing six Travelinks checks that totaled over $85,000. Wells immediately used two of the checks to purchase a Chevrolet Suburban and a recreational vehicle (RV) on the same date. A third check was used to buy Russell Landers a computer.

"The Freemen conducted Smith and Varnell's hearing in their absence. Wells was present, and Landers presented Wells' case against the officers. After the hearing, Wells and others traveled to Montana in the Suburban and RV that had just been purchased. They brought the Suburban and RV to the Freemen compound on February 2, 1996. During a February 3, 1996, telephone conversation with business associate Prajesh Patel, Wells stated that he intended to acquire several more Suburbans to give to the Freemen for their use in Montana. Wells had a similar conversation with another acquaintance in North Carolina.

"The Freemen intended to use Suburban vehicles to arrest and execute public officials in Jordan, Montana. Schweitzer wished to acquire approximately 20 Suburbans for this purpose. The FBI was concerned about Wells' arrival at the Freemen compound with the Suburban, because it placed the Freemen closer to their goal of being able to effect arrests.

"After returning to North Carolina, Wells presented a second comptroller warrant with a face value of $254,000 to Patel, who had successfully negotiated a previous warrant. Patel was successful again, as bank errors permitted the warrant to be accepted on February 6.

"Wells was arrested on February 8, 1996. During the trial, the district court realized an error in Count Three. As the indictment had then read, Wells was charged under 18 U.S.C. § 1002 with using a counterfeit document to defraud the government 'for the purpose of enabling himself to obtain from the Internal Revenue Service . . . .' The statute actually reads 'for the purpose of enabling another to obtain . . . .' 18 U.S.C. § 1002. (emphasis added). At the close of the evidence, the court amended the indictment to read correctly. Wells was convicted of all counts."