International Automated Systems (fka IAUS)

[scion]

03/25/2016 35 REPORT OF ATTORNEY PLANNING MEETING. (Hines, Erin) (Entered: 03/25/2016)


Doc 35 PDF file
https://www.scribd.com/doc/306006001/USA-v-RaPower-3-et-al-Doc-35-filed-25-Mar-16-pdf

Extract -

The United States contends that the defendants have made false and/or fraudulent statements regarding the “solar energy scheme” to their customers. The defendants’ statements induced their customers to take positions on their federal tax returns, specifically tax credits and business deductions to which they were not entitled, which led to an improper reduction in their federal tax liabilities. The improper reduction of their tax liabilities caused harm to the United States and the taxpaying public through tax refunds wrongly issued and taxes rightfully owed that have gone uncollected. The full extent of the harm to the United States remains to be determined.

Pursuant to 26 U.S.C. § 7402, the United States also seeks disgorgement of the defendants’ ill-gotten gains and to require Shepard, Johnson, and Freeborn to advise the IRS of any entity formed by them or at their direction within 30 days from the date of the entity’s formation. The United States contends that these remedies are necessary to protect the United States and the taxpaying public from further harm from defendants’ scheme or any related scheme that they may operate in the future.