Tax ‘Adviser’ Cost U.S. $30 Million, Feds Say

     LOS ANGELES (CN) – A man who runs retirement plan “services” cost Uncle Sam $30 million by setting up sham pension plans, welfare benefit plans and other tax frauds for clients, federal prosecutors say. Prosecutors say $30 million is “a conservative estimate” of the damage done by William Alexander, 60, and his companies, Retirement Plan Services and Lyons Pensions.

     Alexander, a native of Nebraska who works out of California, has been selling “purported pension plans” since 1973, and “purported welfare-benefit plans” since the late 1990s, according to the federal complaint.
     His customers have been mostly small business owners, whose taxes he promised he could reduce or eliminate. The 34-page complaint describes a litany of ruses, all of which prosecutors say are bogus.
     “It is estimated that Alexander’s promotion of the sham pension plans and sham welfare-benefit plan tax-fraud schemes has resulted in at least $30 million harm to the United States,” according to the complaint. “This number is a conservative estimate, as it is based only on a review of tax returns for twenty-four different groups of Alexander customers during the 2003-2007 tax years.”
The government seeks an injunction and penalties.

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