Breaking Legal News - POSTED: 2007/05/01 22:26
In papers filed in support of obtaining the injunction, the government alleged that Olympic deposited almost $28 million of customer funds into accounts that OBS maintained in its own name at commercial banks. Olympic allegedly used the funds to pays customers’ bills and expenses while promising to leave no paper trail.
Judge Lasnik’s order held that Arant “is or should be aware that courts have repeatedly held that warehouse banks are tax evasion schemes.” A California federal court in 2004 permanently closed a similar warehouse bank. Details about that case are available at http://www.usdoj.gov/tax/txdv04785.htm. In 2005 a federal court in Oregon sentenced operators of a warehouse bank to prison, after their criminal convictions. Details are available at http://www.usdoj.gov/tax/txdv05070.htm.