From the US Department of Justice:
Philip A. Kaiser of St. Louis Also Must Provide
Client List to Justice Department
WASHINGTON - A federal judge in
St. Louis has permanently barred a Missouri attorney and his law firm from
promoting any Individual Retirement Account-based arrangement, the Justice
Department announced Friday, September 17th. The order,
entered by Judge Rodney W. Sippel of the U.S. District Court for the Eastern
District of Missouri, bars Philip A. Kaiser and the Kaiser Law Firm from
engaging in conduct that allegedly helped clients improperly evade contribution
limits for Roth IRA accounts and accumulate millions of dollars in tax-free
gains in their Roth IRA accounts, according to the government complaint in the
The court order, to which Kaiser
consented, permanently bars Kaiser and his law firm from promoting or advising
with respect to a number of schemes described in the government complaint:
The complaint alleged that
numerous self-directed Roth IRA accounts were established under Kaiser's
direction to implement the above tax arrangements. This allegedly allowed Kaiser's customers to
improperly evade contribution limits for Roth IRA accounts and accumulate in
their IRAs tens of millions of dollars in tax-free gains.
The court also ordered Kaiser to
provide a copy of the injunction to his employees and customers, and give the
government information about his customers who have implemented the tax
arrangements described in the complaint.
The Internal Revenue Service's
(IRS) list of the "Dirty Dozen"
tax scams for 2010 includes abusive Roth IRA schemes.
John A. DiCicco, Acting Assistant
Attorney General for the Justice Department's Tax Division, thanked Justice
Department trial attorneys Gregory S. Seador and Jessica S. Reimelt for handling
the case, and also thanked Jim Graczyk of the IRS' Small Business/Self-Employed
Division, which investigated the case.
Since 2001, the Justice
Department's Tax Division has obtained hundreds of injunctions to stop the
promotion of tax fraud schemes and the preparation of fraudulent returns.
Information about these cases is available on the Justice Department website.