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Attorney and Client Indicted Along with Four Alleged Tax Shelter Promoters

March 7, 2008

Grand Rapids Michigan

According to the Department of Justice -

John A. Campbell of Portage Michigan, a former partner with the lawfirm Miller, Canfield, Paddock & Stone P.L.C was charged with a one-count conspiracy to Defraud the United States for assisting four tax shelter promoters over a ten-year period.
Additionally, Campbell’s client, Oskar René Poch of Hickory Corners, Mich., who owned and operated Trillium Staffing, an employee-leasing company in Kalamazoo, was charged with one count of corruptly endeavoring to obstruct the administration of the Internal Revenue laws.
Two other promoters were also charged with attempted Income Tax Evasion for selling fraudulent tax shelters and misleading the IRS on their tax returns.  They used loss-of-income insurance policies called LOI policies,  issued through Security Trust Insutance Company, which is not defunct once known as Caduceus Life Insurance of the U.S. Virgin Islands.

According to the superseding indictment, Peggs, Larsen and Merlo, who were officers, directors and owners of Security Trust, and Campbell and Stone, promoted and sold LOI policies to wealthy clients in order to generate phony tax deductions, and subsequently returned nearly all of the premiums to the U.S. taxpayer clients in a manner concealed from the IRS. During the duration of the conspiracy, more than $12,000,000 in premiums was collected.
These are recent indictments and the case has yet to be tried.  These are alleged charges.