IRS Gets Crushed in Washington State
Two innocent and patriotic citizens dodge 64 IRS lethal
bullets in a triumph
for justice and the American way.
By Tedd Peck Investigative Reporter
Investigative Reporter Edward Snook Contributing
March 14, 2008, Seattle, WA] Last Christmas, the spirit of the
season bestowed upon a Montrose, CO couple the greatest gift of all,
freedom! James and Pamela Moran, facing a possible 180 combined
years of incarceration were found not guilty by a jury of their
peers on all 64 charges of an indictment in a Federal Courtroom.
This victory defied all odds because the Moran's were convicted of
the same charges in December of 2004. The Ninth Circuit Court of
Appeals overturned the Moran's 2004 convictions, granting them the
Staying true to form the government once again indicted the Moran's
and a court date was set for early December of 2007. The government
expected the same outcome from this trial as they experienced in the
first one in 2004. Now enters a ringer for theMoran's, a Texas
attorney, and former Golden GlovesChampion, Michael Minns. So it was
back to Sleepless In Seattle for round two.
This time the Assistant United States Attorneys (AUSA's) would draw
the darling of both the right wing and left wing, with G. Gordon
Liddy on the
right endorsing Minns as America's top criminal tax defense lawyer
on his top-rated national radio show. Liddy also plugged Minns'
book, "How to Survive the IRS" in 2001. On the left wing, Geraldo
Rivera based two shows in 1991 and 1992 on innocent clients freed by
Minns' remarkable legal skills, while endorsing Minns' best seller,
"The Underground Lawyer." Minns' thirty year career has been noted
for his envelope pushing defenses of citizens against what he calls,
"The American Gestapo" and "The Tax Terrorists" - The IRS!
Mickey Brown, the former Texas middle weight champion, who trained
Minns and worked his corner when he won the 1969 Golden Gloves
Boxing Championship Title remarked that, "In boxing you wear a cup
to protect you from the low blows. I taught Mike to avoid low blows
and he has made a career out of stopping lawyers and the IRS from
landing them. Pound for pound he's the best Tax Defense lawyer and
the Best Legal Malpractice lawyer in the country. And you need both
to fight these unscrupulous terrorists."
It's true that Minns' unblemished string of acquittals for clients
and reversals on appeal have won him widespread acclaim, but his
combination of skills in which he maintained a practice suing bad
lawyers and accountants led to his most unusual conquest; that of
winning the largest Test Case Petitioner reversal and tax refund
case in United States history. This accomplishment entailed
obtaining a circuit court finding that the IRS had indeed committed
a fraud in court against 1300 airline pilots during a 2003 tax case.
Without missing a jab or combination flurry, Minns dismantled the
careers of two corrupt IRS lawyers who promoted the fraud for fun,
profit and self aggrandizement. Mr. Kenneth W. McWade and his
superior William A. Sims were subsequently suspended from their
respective state bars and lost their privilege to practice law
before the Tax Court due to Minns' efforts. This was the first time
in history that IRS lawyers were publicly and thoroughly punished
for their fraud, all the while on the taxpayers' payroll. With that
said, the IRS agents treat citizens with complete abuse, yet if we
treat the IRS code with that much irreverence, you and I would end
up in a jail cell. ??
The Morans, sitting at the same table, in the same court room where
they had been convicted and sentenced to serve hard time in prison
nearly three years earlier, were of course concerned. They had
nothing more than their innocence, their faith, and Michael Minns'
team to support them. While each of the counts had been won (often
by Minns in previous trials) by themselves, no one had won a dozen
straight counts, on offshore tax counts, coupled with money
laundering accounts, and wire fraud counts, since a New York lawyer
in the 60's, straight across the board.
While some lawyers brag about winning a few of the counts
(forgetting to talk about losing a few counts too), in today's
sentence-guidelines-directed Federal system, each count is like a
bullet...one guilty count means time in prison. Minns counts each
bullet as a defeat. The government had indicted the Morans with 64
counts, 64 bullets, and the first time they had fired their machine
gun, all 64 bullets had stolen blood from the Morans.
While the appellate court removed all 64 bullets, the emotional
scars were still there on this Minister and his Sunday school
teacher, Church organist wife, who had, three years earlier,
listened as the Judge read the verdicts of guilty one after the
other, and then ordered them to prison if they lost their appeal. So
they faced the same table prepared before them in the presence of
their enemies, but also in the presence of an American Jury sworn to
On February 28, 2001, the IRS conducted the largest raid in its
history covering three countries, Canada, Costa Rica and the United
States, leading to the indictments of dozens of people across the
country that worked for or purchased products from an organization
called Anderson Ark and Associates (AAA) based in Costa Rica.
Armed searches and arrests took place coast to coast stretching from
Boston to Sacramento and Fresno, California and from Seattle to
Carolina and Texas. At the time, this police action was referred to
as, "stopping the largest tax scam in history."
During the next six years, indictments rained down from Washington
targeting nearly everyone who participated in the organization,
a developer, unsuspecting promoter, or trusting client. From
February 2001 until November 2007, the IRS had a 100% conviction
rate. That on the surface may be an impressive record. But when the
truth is finally revealed, their success is not unlike a
ballplayer's stats while on steroids. If someone was one of the
25,000 participants, the odds were very high that that person would
be indicted, prosecuted, tried and convicted. What was their
offense? Actually, it was following the Internal Revenue Tax Code.
James and Pamela Moran became involved in AAA through a professional
relationship with Roosevelt Drummer, a former IRS agent who rendered
them tax accounting assistance years earlier. Mr. Moran, a Viet Nam
veteran and minister, who, along with Pamela a church organist truly
believed in the AAA mission of ridding people of debt and creating
wealth. Their passion for this program led them to a leadership
position within the organization, assisting others in marketing
various products and opportunities. For their efforts in helping
others, they were subjected to humiliation through
investigations, indictments, arrest and two Federal trials that drew
national exposure in Seattle, WA. Included in this Federal travesty
was confiscation of their worldly possessions, including their home
and new Jeep.
The charges included alleged charges of wire fraud, money laundering
and assisting in the preparation of false tax returns. This form of
incrimination is particularly odd since the Moran's were not privy
to the clients' tax returns, nor did they suspect that they were
doing anything unlawful or illegal. The money they were accused of
defrauding people out of included their own money which they never
got back. The
Morans were literally accused of being involved in a conspiracy to
steal money from themselves.
Nevertheless, they were put on trial in late 2004 along with four
Certified Public Accountants/IRS enrolled agents, the alleged ring
of the organization, Keith Anderson of Costa Rica and Wayne Anderson
from Central California, as well as the head of United States
operations Richard Marks.
The first trial lasted for more than a month ending with guilty
verdicts for the Andersons, Marks and James and Pamela. The CPA's
verdicts were hung and the government agents' threats to pursue them
with another trial eventually led to their capitulation, because of
the stress and financial ruin to which they were being subjected.
The mighty Department of Justice got their marks and all was well
with the world.
Not quite, ruled the Ninth Circuit Court of Appeals. Much to the
chagrin of the Assistant United States Attorneys, it appears the
prosecutors and judge in the 2004 trial failed to allow Pamela's
testimony regarding her state of mind as to her intent to break the
law to be heard during the trial. As has happened in other AAA
trials the government, and in some cases the defense attorneys, took
all precautions to keep the defendants from telling their story. It
appears this inconvenient truth threatened their desired outcome,
for if the juries were allowed to
hear defendants argue that there was no willfulness or knowledge of
breaking any law, they would be found not guilty.
The Morans being good law abiding folk, only wanted to help others
less fortunate than themselves or help those more fortunate to find
deferment advice from the CPA staff. Tax avoidance is not the same
as tax evasion. Tax avoidance is an acceptable practice sought out
by people every day all over this country.
Unlike those victims/defendants that were tried before them, the
Morans, with the assistance of Michael Minns, his daughter Attorney
Rain Minns, Peter Mair and John Zulauf, heard angels singing when
all counts of the indictment received a not guilty verdict. The IRS
skein of convictions stopped when the Jury of 12 citizens heard the
truth and exposed the callous disregard the tax enforcers have for
honest people looking for investment advantages. More importantly
the acquittals proved that everyone in the organization below the
Moran's level, including those that promoted the program never had
any knowledge that the program was anywhere near illegal, a point
that the IRS or the DOJ has not bothered to prove. In fact, the
prosecutions occurred because the people involved did not hold elite
status as determined by government bureaucrats.
Hundreds of lives have been damaged and some destroyed because of
run amuck government agents and deceitful prosecutors and in most
cases compliant judges. For the Morans these verdicts ended nearly
seven years of horror as they lived with the fear of being separated
if imprisoned, loss of their assets, reputations and alienation of
friends and neighbors.
Paul DeFosses, former IRS revenue agent and founder of the Whistle
Blowers Association of former IRS employees has declared that the
organization for which they once worked has gotten out of control
and violates American principles of justice. DeFosses is reported to
have said: "Minns is so far above the pack there is no number "Two."
He is the top tax defense lawyer in the country." DeFosses has
testified about IRS atrocities several times before the U.S.
Congress and helped draft the TaxPayers Bill of Rights. Rights, that
seem to have vanished through the unbridled ambition of bottom
dwellers working with a badge, under the color of law.
Enrolled Agent Collis Redd, reviewing the cases remarked, "If you
can't hire Minns or get a lawyer willing to study his books and
techniques, pack your tooth brush. You are going to jail. No one
else knows how to defend the innocent taxpayer in court. Minns wrote
the book, actually, both of them."
Congressman and Presidential contender Ron Paul said, "Working in
the tradition of the framers of the Constitution, is attorney
Minns. He has defended many Americans against the depredations of
the tax police, and argued for a fair and constitutional system in
place of the personal income tax." Congressman Ron Paul also wrote
the introduction to Minns' second book.
John Berthound, President of the National Taxpayers Union said,
"Tax-and-Spend Members of Congress and their shrill media allies
that 'tax cheating' is rampant and on the rise because of recent IRS
reforms. Michael Minns provides prima facie evidence against those
would like to make us think we've gone 'too far' in trying to rein
in IRS abuse and change the way we tax our citizens."
So it is said that behind every successful man there stands a strong
capable woman and in this case she is Minns' daughter Rain, who
volunteered to act as co-counsel with her Father. With a successful
career helping bring justice to people harmed in senior
housing facilities behind her, she answered the call to pitch in and
got the defense team ready for trial. This was a daunting task as
team had all of three months to un-track the U.S. Government team of
Rain Minns, a long-time advocate for tax justice will continue as a
partner in her Father's firm to help people like the Morans and
investors in AAA, or victims of malicious prosecution everywhere who
didn't get their fair day in court.
What follows are vignettes portraying some of the tactics used by
the men in black.
During the recent trial one witness spoke about the government
asking her to lie about the Morans and make them out to be at the
top of the AAA organization. What is astounding is that she was
asked this question by the prosecutor after Minns question was
objected to and sustained.
Probably the person in charge of the attack on the Morans, that did
the most damage to these two innocent people, was CID (IRS) agent
Michelle Hagemann, known for her shoot-from-the-hip and
asks-questions-later style of investigation. CPA Joseph Moschetti of
Grand Junction, CO took it upon himself to personally destroy the
Morans. Moschetti, who may have been concerned about losing a client
to AAA took it upon
himself to act as an investigating agent and recorded phone calls
with the intent to entrap the Morans. These tapes were handed over
to CID agent Hagemann, who under oath admitted she had a
professional relationship with Moschetti, who swore to bring the
Morans down. Hagemann also admitted, "The tax code can be complex
depending upon which section you are looking at."
Minns had trouble understanding the relationship between Hageman and
Moschetti, who Hageman called the most honorable and honest of
individuals. On the stand, Hageman avoided answering this question
ten ways from Sunday, until finally, under Minns' polite but
persistent questioning, she admitted that there was more to her
relationship with Moschetti than simply an IRS agent to an
informant. Minns kept asking: "How is it that this CPA has the phone
number of an IRS Special Agent? Isn't that unusual?"
And the truth finally came out. Not only did Hageman accompany
Moschetti personally to an Anderson Ark meeting where the Moran's
speaking, she finally admitted, he also prepared her personal tax
returns. "Will Moshetti get a reward for turning these people in?"
Minns asked her. And again, she avoided the straight answer saying:
"I know nothing about it," until finally she admitted it was
possible that a request would possibly come to her when all the
trials were over.
To this day the IRS has never proven the AAA program illegal. In
fact, the US Observer legal publication reported over 18 months ago
that the IRS auditors did not consider the program illegal, but the
Department of Justice attorneys were prosecuting participants as if
it were the largest
tax scam in history. Presumption trumps reality every time. The
Morans stated, "We were humbled by our seven year ordeal, but left
our fate in
the hands of the Lord."
Now let's get the Moran's Jeep back.
Editor's Note - Look for more in-depth information in future
editions concerning the collusion, fraud and conspiracy against
innocent victims of
the government's attack on AAA participants
No law compels a work eligible man or woman to submit a form W-4 or
their equivalent) nor disclose an SSN as a condition of being hired
keeping one's job. With the exception of an order from a court of
jurisdiction issued by a duly qualified judge, no amounts can be
taken from one's pay (for taxes, fees or other charges) without the
explicit, knowing, voluntary, written consent.