The story broke today about the arrest and indictment of telecommunications entrepreneur Walter Anderson, of Washington D.C. for an alleged evasion of income tax in excess of $200 million, which sets a new record for the USA, relative to the size of a criminal tax case for an individual.
Anderson started a long distance telecommunications business at the time the industry was being deregulated. When his first company merged with another company in 1992, he formed offshore corporations in the British Virgin Islands to hide the income and mask his involvement in the companies, the indictment said.
Apparently the accused was using offshore corporations and false identities, the indictment alleges Anderson used the assets and profits of his telecommunications corporations to earn more than $450 million between 1995 and 1999 that he failed to report to the IRS. Also, there appears to be evidence that Anderson may have possessed several identities and falsely claimed to be a Florida resident to avoid paying his Washington income tax.
Today Arthur Anderson appeared in court and is being held without bail until Thursday's hearing.
In a statement from Assistant Attorney General Eileen O'Connor, in charge of the Justice Department's tax division, she said countries known as offshore tax havens have been cooperating with U.S. investigations more often since the attacks of Sept. 11, 2001.
This will be a landmark case, one in which the Eileen O'Connor wants to send a clear message to other entrepreneurs.
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