Concealing AssetsIn USA v. Allen, Pennsylvania anesthesiologist Mr. James G. Allen Jr. pleaded guilty to tax fraud on June 4, 2019. Mr. Allen’s plan for concealing assets from the IRS seemingly relied on two common concealment methods. These two methods were abusing an offshore bank account and misusing a nominee, (i.e. intermediary). Mr. Allen is thought to have put the two methods to work to conceal more than $3 million in income both he and his wife had earned as anesthesiologists.


Prosecutors in USA v. Allen said Mr. Allen had hidden money in an offshore bank account located in the Baliwick of Jersey.  Additionally, prosecutors indicated Mr. Allen had been concealing his car and house by titling them in the name of a nominee—the Kenpo Unification Church. Prosecutors also alleged Mr. Allen concealed some of his and his wife’s earnings as anesthesiologists, by transferring the earnings through the Kenpo Unification Church. Prosecutors said the Kenpo Unification Church was a sham religious entity Mr. Allen had formed. Mr. Allen is thought to have selected the name Kenpo Unification Church because Mr. Allen had been a black belt candidate in the martial art of American Kenpo.


Furthermore, the judge presiding over Mr. Allen’s January 16, 2020 sentencing hearing said Mr. Allen had not accepted responsibility for his tax fraud. The judge said this after Mr. Allen read his statement at the sentencing hearing. Among other things, Mr. Allen’s statement blamed his tax fraud on a book Mr. Allen started reading in 2009.  This book, called “Cracking The Code” was written by Peter Hendrickson. Rejecting Mr. Allen’s claim that “Cracking the Code” somehow caused Mr. Allen to commit tax fraud, the Judge sentenced Mr. Allen to 30 months of prison.  The Judge also directed Mr. Allen to pay restitution in the amount of $1,084,658.52.

Copyright 2021 Fred L. Abrams