Tax Sham Kingpin: Clients Should Go To Court


Jerome Schneider, 53, the nation’s best-known seller of fraudulent offshore banks, says that he had helped hundreds of rich Americans evade taxes, including actors, celebrities, and business owners. Schneider, who pleaded guilty in February to conspiring to help his clients evade the tax laws, said he expected “every single one” of his clients to be prosecuted or sued for the taxes they evaded.

Schneider, 53, spoke to the New York Times in Seattle as three IRS criminal investigators stood by. They said nothing but smiled as he named clients and associates. He is to be sentenced Monday in Los Angeles. In return for his cooperation, he is expected to serve no more than 24 months in prison. Since 1976, Mr. Schneider has set up sham banks for clients in the Cayman Islands, Grenada, Montserratt, Vanuatu, the Cook Islands and Nauru, a Pacific island. Clients paid as much as $60,000 to “acquire” an offshore bank–a paper transaction to create the appearance of legitimate business activity, he said. He said his clients had two things in common: they were rich and they wanted to escape taxes.


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