Investment News - Lance Wallach - 412i and 419 plan litigatation

Investment News - Lance Wallach - 412i and 419 plan litigatation

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    Lance Wallach's Reviews > Protecting Clients from Fraud, Incompetence and Scams

    Protecting Clients from Fraud, Incompetence and Scams by Lance Wallach
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    Protecting Clients from Fraud, Incompetence and Scams
    by Lance Wallach
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    Lance Wallach's review Apr 17, 14
    5 of 5 stars
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    message 1: by Lance - rated it 5 stars Nov 26, 2013 12:12PM
    Lance Wallach One prominent promoter/TPA of 419 plans was Tracy Sunderlage out of the Chicago area.

    Final Judgment and Permanent Injunction—the Tax Division of the U.S. Department of Justice was after Mr. Sunderlage and his companies.

    On February 28, 2012, John Darrah, U.S. District Judge, signed a final order and permanent injunction with the agreement and approval of Mr. Sunderlage. The injunction is what’s really interesting. It bars Mr. Sunderlage from promoting, selling, acting as trustee or administrator for, or otherwise organizing, administering, or implementing:

    -the PBT Multiple Employer 419 Plan and/or the Maven Structure described in the complaint.

    -any plan or arrangement that is similar to the PBT Multiple Employer 419 Plan and/or the Maven Structure, including any plan or arrangement that claims to be a welfare benefit plan or to allow an employer to make a deductible contribution to a welfare benefit fund under I.R.C. Section 419 and/or I.R.C Section 419A.

    -any plan that assists others to violate or attempt to violate the internal revenue laws or unlawfully evading the assessment or collection of one’s federal tax liabilities.

    The above are just three of the restrictions that Mr. Sunderlage agreed to. There are three more; but for the sake of brevity, I’ve listed the above which should get my point across.

    Complaint below:

    http://www.globalstrategicadvisors.co...

    What can we learn from the crashing and burning of 419 plans?

    You’ve heard the saying that pigs get slaughtered? That’s exactly what we can learn from 419 plans. Once upon a time, 419 plans were done correctly. However, when the greed that revolved around life insurance commissions took hold, many unscrupulous firms entered the marketplace and sold non-compliant plans that allowed the IRS to eventually put the death nail in the heart of 419 plans.

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