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Asset Protection News - 12/04/01

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  • vernjacobs@yahoo.com
    ASSET PROTECTION NEWS - December 4, 2001 This email newsletter may be forwarded to friends or colleagues. To subscribe or unsubscribe, go to
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      ASSET PROTECTION NEWS - December 4, 2001

      This email newsletter may be forwarded to friends
      or colleagues. To subscribe or unsubscribe, go to
      http://groups.yahoo.com/group/jacobsreport


      ==================================================
      * ASSET PROTECTION SERVICES SOLD BY MLM PROMOTER
      * ARE YOUR BUSINESS COMMITMENTS IN WRITING?
      * PERSONAL PRIVACY STRATEGIES FOR WINDOWS 95/98/2000
      * MORE NEWS ON THE PATRIOT ACT OF 2001
      * TERRORIST ATTACK KILLS BANKRUPTCY REFORM IN 2001
      * SPONSORS
      ==================================================
      ASSET PROTECTION SERVICES SOLD BY MLM PROMOTER

      Yesterday, a couple called me to ask if I knew
      anything about a particular company and person who
      is promoting a "marketing opportunity" to sell
      asset protection services. Apparently, the primary
      methods for protecting assets include a Nevada
      corporation with bearer shares and a Panama company
      that is issued with Bearer shares. I won't name the
      company and person because everything I heard is
      hearsay and it's not worth my getting into a lawsuit.

      The proposition to this couple is that they can
      make money by paying $9,800 for a "franchise" or
      some form of marketing arrangement that will allow
      them to sell corporation formation services as a way
      to protect assets. Neither of them are lawyers.
      There are other non-lawyers who are selling corpor-
      ation formation services, but it seems that this
      package comes very close to providing legal advice
      along with the corporation services. The first
      serious problem with this "opportunity" is that if
      it is not the unauthorized practice of law, it comes
      very close and could lead to some unexpected
      liability for the people selling this service.

      But the more serious drawback is that bearer share
      corporations are not a "bullet proof" form of asset
      protection. As long as more than 50% of a corporation
      is owned by one person, a creditor who gets a
      judgement against the controlling shareholder can
      just get an attachment of the shares and can then
      proceed to liquidate the corporation.

      The advocates of the bearer share corporation argue
      that no one will know who the owners of the corporation
      are. That might work to deter a few lawsuits from some
      one who is not well informed or well financed. But
      a lot of lawsuits come from former employees,
      former partners, former spouses or former lovers.
      These people are likely to know about the secret
      corporation.

      Another problem is that in order to keep the
      corporation's existence a secret, you have to commit
      perjury on your tax return and in a deposition.

      If you have a Panama corporation, there are a LOT
      of very unpleasant tax problems with which you must
      deal -- or you will risk being caught by the IRS
      in one of their financial expeditions to locate
      hidden accounts. And if you have a foreign bank
      account that is not disclosed, the penalties could
      be as much as $500,000 for non disclosure.

      If the corporation has extensive assets, it will
      leave a paper trail that can be found by asset
      search experts or forensic accountants. The idea
      of a bearer share corporation may have some appeal
      to the uninitiated who don't know any better, and
      it will work just fine as long as you are not sued.

      But for genuine asset protection, it's a sucker play.

      ==================================================

      ARE YOUR BUSINESS COMMITMENTS IN WRITING?

      If you are an accountant, lawyer or financial planner,
      one of the best ways to minimize lawsuits is to have
      an engagement letter and to update it as and when you
      and the client agree on an expansion of the services.

      The same principle applies to many other kinds of
      service businesses. For those who sell products, a
      clear warranty and statement of what the product will
      and will not do can help to avoid disputes that may
      lead to a lawsuit.

      ==================================================

      PERSONAL PRIVACY STRATEGIES FOR WINDOWS 95/98/2000

      "If someone was able to secretly stand behind you
      and monitor everything you've done on your PC, say,
      for the last six months, what would that person
      discover about you that you would prefer to keep
      private? Thanks to new surveillance techniques, that's
      an appropriate comparison of the threat you face
      unless you take advance precautions that my new report
      describes." Mark Nestmann

      Mark Nestmann, former Editor of Low Profile and current
      Editor of The Sovereign Individual has written an
      extensive report on Personal Privacy Strategies for
      users of computers with Windows that includes tips on
      how to protect the data on your computer from a variety
      of hazards -- including those who are fishing for
      information.

      Details on how to order the $49 report are online at
      http://www.agora-inc.com/reports/MNPS/MNDAL1/

      --------------------------------------------

      MORE NEWS ON THE PATRIOT ACT OF 2001

      The ostensible purpose of the Patriot Act of
      2001 is to provide new legal tools to locate
      the assets of global terrorists. Due to the
      fervor and speed with which it was passed, it
      became a Christmas bag of goodies for those
      who want to scrutinize the daily financial
      details of every person in the world. Privacy
      advocates had little time to respond and almost
      no sympathy for their objections. For recent
      updates on this very large and complicated new
      law, see http://www.moneylaundering.com/news.htm#29112

      =============================================

      TERRORIST ATTACK KILLS BANKRUPTCY REFORM IN 2001

      According to Dan Stanley, Editor of the email
      "Fresh Start News",

      "... bankruptcy reform legislation is on the back of
      the back burner. If it ever gets passed it will go
      into effect 180 days after the president signs it
      into law. Any cases filed before the 180 days runs
      will be processed under the present law. Any cases
      filed afterwards will be under the new law."

      For a free subscription send an email to:
      FreshStart-subscribe@yahoogroups.com

      For further details on the subject visit the
      American Bankruptcy Institute web site at
      http://www.abiworld.org/

      ==================================================
      SPONSORS

      Offshore Press - www.offshorepress.com
      Vernon Jacobs - www.vernonjacobs.com
      PrimeGlobal - www.offshorepro.com

      ==================================================

      CALENDAR: Check the calendar link on this web
      site for upcoming tax due dates and seminar
      dates. If you have suggestions for other
      calendar/date listings, let me know.

      BOOKMARKS: Check out the links at the book-
      marks on this site. If you have a suggestion
      for adding a link, send it by email to
      JR-links@...

      SEMINAR POLL: Would you like to attend a two
      day concentrated seminar on offshore tax law
      sometime next May? If you MIGHT be interested,
      please send an email to seminars@...
      and ask to be included on our seminar news list.

      SEND THIS TO A FRIEND: If you like this news-
      letter, send a copy to a friend.

      FREE TAX SAVING TIPS:
      Http://www.offshorepress.com/vkjcpa/
      FOREIGN CORPORATION/IBC TAX GUIDE:
      http://www.offshorepress.com/cfc-ibc-tax.htm
      THE OFFSHORE MONEY MANUAL
      http://www.offshorepress.com/osmm2000.htm
      INTERNATIONAL ADVISORS:
      http://www.offshorepress.com/experts.htm
      INTERNATIONAL SEMINARS:
      http://www.offshorepress.com/seminar.htm
      OFFSHORE TAX SEMINARS:
      http://www.offshorepress.com/ostaxbootcamp.htm
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