OWC Pharmaceutical Research Corp (OWCP)

[Jasper Jillionaire]

Per the IRS instructions on what you cannot claim as a loss on form 4684, “a decline in market value of stock caused by illegal misconduct by the officers or directors of the corporation that issues the stock, that was acquired on the open market for investment” cannot be claimed on form 4684.

The IRS is basically saying what happened with OWCP does not qualify for ponzi scheme section C of the form. This is exactly what happened with OWCP but it was a spokesperson rather than and officer or director. I can’t imagine the rules would change being it’s a spokesperson who committed the fraud rather than an officer/director.