ASSET PROTECTION NEWS - December 4, 2001
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* 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
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
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
Details on how to order the $49 report are online at
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:
For further details on the subject visit the
American Bankruptcy Institute web site at
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
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.
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