February 13, 2004 - admin

Offshore bank promoter rolls over, will reveal his customers

Jerome Schneider was a long-time fixture (let’s be polite, shall we?) in the offshore finance arena. He fled to Canada several years ago when the law dogs started barking too closely in the U.S.

He sold offshore “banks” that were based in such lovely places as Nauru. His buyers were U.S. residents who seek asset protection or (ahem) sometimes didn’t want to pay taxes. In order to believe that his bank structures worked, you needed to believe in magic. The law certainly wasn’t on his side.

The U.S. Attorney’s office in San Francisco has announced a plea bargain: Mr. Schneider has pled guilty to conspiracy to defraud the U.S. government. His lawyer, Eric Witmeyer, also cut a deal with the Feds.

Part of the deal is that Mr. Schneider will cooperate with the IRS. Translation: he will tell the IRS the names of all of his customers. The IRS (I am sure) will bring a rain of heavy hammers down on those poor folks.

US Real Estate Investments