U.S. judge blocks tax-evasion scheme

An Edmonds man is barred from using sham trusts

By Jim Haley
Herald Writer

SEATTLE - An Edmonds man associated with anti-government religious organizations has been barred from promoting a tax scheme that used sham trusts to help customers evade paying federal taxes, the U.S. Justice Department announced Wednesday.

U.S. District Court Judge Ricardo Martinez signed an order Tuesday that said Glen Stoll continues to promote the fraudulent scheme after the Justice Department in February filed a lawsuit to stop it.

The court found that Stoll sold fraudulent "corporation sole" and "ministerial trusts," telling customers that they would be treated like churches and could avoid paying income taxes or filing tax returns.

A corporation sole is a device recognized by Washington law for churches to hold property used in association with religious activities.

"The court stated that the ministerial trusts Stoll created for his customers were not created for religious reasons, but were instead used to operate secular businesses - such as pest control and carpet cleaning firms," the government said in a statement.

"People who buy into tax-fraud schemes are buying nothing but trouble," said Eileen O'Connor, assistant attorney general for the Justice Department's tax division.

That trouble includes past-due tax bills, plus interest and penalties, and the possibility of criminal prosecution, O'Connor said.

The court order also requires Stoll to turn over his customers' names, mailing and e-mail addresses, and Social Security and telephone numbers.

The order requires Stoll to notify his customers of the injunction, remove materials about the promotions from his Web site and post a copy of the injunction on the site.

In February, the Justice Department sued Stoll and Michael Stevens of Everett, alleging fraud in promoting tax-shelter plans. The lawsuit alleges that Still and Stevens are former associates of John and Candace Sinclair of Kirkland, who are defendants in a similar lawsuit filed in January.

According to the complaint, the men helped customers transfer their income to offshore bank accounts. Customers then got access to their money using credit cards. They allegedly were advised not to report the income on tax returns.

The government said Stoll and Stevens ran several businesses, including Nonprofit Commercial Enterprises, the Firm Foundation, Ecclesiastical Enterprises, Family Defense League and Remedies at Law.

Stoll has been involved with Embassy of Heaven, an anti-government religious organization based in Sublimity, Ore., according to court documents.

In the 1990s, Stoll was a father's rights activist operating in Snohomish County.

Reporter Jim Haley: 425-339-3447 or haley@heraldnet.com.