Dear Friends,

>Whois this weird "John Wayne Zidar" guy anyway?

Well, he's an anti-government extremist, and the ADL hates
him, so he might be okay.  But, then, the ADL doesn't like
Don Henson of El Paso, and neither do I.

Here's the URL:http://www.adl.org/internet/extremism_rw/scams.asp

Text below.

Mind you, the ADL never demonstrates that the banking
cartel isn't running a Ponzi scheme of its own.  Next
the ADL may wish to prove that Social Security is fully
funded. <grin>

Regards,

Jim
  http://www.GoldBarter.com/ --> a free market: win free now & save!

Here's the ADL version of events:
 The Consequences of Right-Wing Extremism on
  the Internet 
 Making Money Online: Marketing Scams 

Many extremists, both online and off, use scams and frauds as a
way to fill their pockets. Like extremists who sell goods or promote
products sold by others, those who market scams target other
extremists. Often, the victims of these scams do not report them to
the authorities because they, extremists themselves, distrust the
government.

"Prime Bank Instruments" -  A Ponzi Scheme

In May 2000, the Securities and Exchange Commission (SEC)
brought to public attention a scam engineered by anti-government
extremist John Wayne Zidar of Gilbert, Arizona and two
accomplices. Zidar attracted conspiracy theorists and others on the
far-right fringe to his World Community Educational Society Web
site and other Web sites with claims that "the entire monetary
system of the United States and the free world itself is nothing
more than a giant Ponzi scheme." Promising them returns upwards
of 120 percent per year, he sold them "prime bank instruments,"
investments that he claimed are free of risk and government
regulation. According to the SEC and the FBI, these investments
were bogus, and in fact, all "prime bank" offers are scams. Zidar
and friends used some of the more than $50 million they reportedly
collected from investors to pay off early depositors making
withdrawals, giving them the false impression that they had actually
reaped returns on real investments. According to court documents,
much of the rest of this money was deposited in the offshore bank
accounts of Zidar and his associates or spent by them on new
luxury homes and cars.

When the FBI and the IRS raided the homes of Zidar and one of his
accomplices, Zidar posted a passionate press release on his Web
site defending himself. Other right-wing anti-government sites
characterized him as a victim, and one portrayed him as a helpful
"teacher" of "adult distance learning classes" on topics including
"the banking and government systems which run the modern
economic world." Bob Caruso, the attorney representing Zidar,
called the SEC civil action against him a "lie" as big "as those at
Waco and Ruby Ridge." When Zidar appeared in federal court,
more than 50 of his victims gathered in the lobby of the U.S.
Attorney's Office to demand that the government stop persecuting
him. 

"Pure Trusts"

Just as John Wayne Zidar claimed that "prime bank instruments"
reap tremendous returns, other extremist con artists assert that the
"pure trusts" they sell will shield the assets of their customers from
creditors and tax collectors. In actuality, "pure trusts," like "prime
bank instruments," are a sham. They lack two primary attributes of
legitimate trusts: some person or organization pays tax on the
income generated by the trust, and the person placing assets in
the trust does not retain control of those assets. Owners of "pure
trusts" detected by the IRS end up paying the government much
more money in taxes and penalties than if they had simply reported
the income they were trying to hide.

Don Henson of West El Paso, Texas, who has been active in
anti-government Texas secessionist groups, sells "pure trusts" at
his online store. "No leader, monarch, dictator, president,
legislature, or other terrorist organization, publicly recognized as
legitimate or not, has the right to restrict any individual's life, liberty,
or property," claims Henson, who explains that pure trusts operate
under "common law," free from the "sometimes arbitrary rules of
the government." According to Henson, "pure trusts were formerly
available only to the very rich," but now he sells them "for only"
$1,249. A Web user interested in buying a "pure trust" from Henson
needs simply to fill out a form on his Web site and enter his credit
card number.

In court cases such as People v. Lynam (1968), the State of
California has held that promoting "pure trusts" constitutes fraud.
Yet Lynne Meredith of Sunset Beach, California, a leading figure in
the extremist tax protest movement, openly markets "pure trusts"
online. According to Meredith, such trusts protect assets from
"vultures" such as tax collectors and creditors, and they have "NO
accounting, bookkeeping or reporting requirements," "NO Income
Tax Withholding or Social Security requirements," and "NO
quarterly tax payment or reporting requirements." Meredith charges
$795 for the first "pure trust," $695 for each additional trust, and
$1,750 for three "pure trusts."


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