THE LIFEBOAT STRATEGY. Mark Nestmann
your household?
Yes
No
27. Have you ever invested in a “tax shelter?”
Yes
No
28. Have you ever had an offshore account you were supposed to report to the IRS and U.S. Treasury, but didn’t?
Yes
No
29. Do you own a business as a sole proprietorship or part of a business organized as a general partnership?
Yes
No
30. Are you a director or officer of a closely held corporation?
Yes
No
Your score: _____
0-7 points: Virtually unexposed. Congratulations! You have successfully shut off most surveillance of your wealth and privacy.
8-15 points: Somewhat exposed. You have shut down more pathways to surveillance of your wealth and privacy than most Americans. But with effort, you can lower your profile even more.
16-22 points: Exposed. Your life is practically an open book. You should take steps to lower your financial profile immediately.
23-30 points: Highly exposed. You need to take immediate steps to protect your wealth and privacy. You’re an easy target for identity theft, lawsuits, and/ or asset forfeitures.
No matter what your score, The Lifeboat Strategy can help you create “lifeboats” of privacy and wealth to reduce your vulnerability to legal and financial predators, and the growing power of “Big Government.”
IT’S YOUR MOVE…
On every front, from boarding an airplane to opening a bank account, you—and your money—are under surveillance with an intensity that would have been unimaginable only a few short years ago. Identity theft…no fly lists…e-mail surveillance… data mining…many of today’s most serious threats to privacy and wealth have exploded into prominence in the first decade of the 21st century.
The Lifeboat Strategy reveals hundreds of techniques you can put to use, right now, to protect your privacy and wealth. It’s divided into two volumes. Think as Volume 1, consisting of Chapter 1 and 2, as the “problem.” Volume 2, consisting of Chapters 3-5, is the “solution.” In some situations, U.S.-based solutions aren’t effective, so Chapter 5 will introduce you to the world of offshore bank accounts, offshore trusts, and much more. And the bonus report accompanying The Lifeboat Strategy introduces you the world’s leading offshore jurisdictions.
There’s much more to tell about what you’ll learn in this book. But first, you should understand what you’re up against…a summary of the problem, if you will.
Here are a few examples drawn from my files. If they sound extreme, they’re not. These events occur regularly in the United States. Understand them, but don’t fear them, because within The Lifeboat Strategy, I’ll show you legal, safe solutions for these and dozens of other ever-increasing perils.
Yes, You ARE a Criminal…You Just Don’t Know It Yet
Once up a time, you had to knowingly violate a law in order to be found guilty of violating it. However, legislators have largely eliminated the requirement for “criminal intent” to be found guilty of a criminal offense. It’s no wonder that the United States has the highest per-capita incarceration rate of any country.
How many felonies have you committed today? If you’re like most Americans, you probably violate federal or state law several times each day, without even knowing it.
Just ask Daniel Aversa, who was convicted of money laundering for conspiring with a friend to hide income from his wife. The scheme triggered reports of suspicious transactions in Aversa and his friend’s bank accounts. Essentially, Aversa tried to avoid the requirement to report cash deposits or withdrawals that exceed $10,000 in his bank account from the U.S. Treasury. He didn’t realize that this activity is called “structuring” and is prosecuted under the federal money laundering laws. This law applies even to legally earned, after-tax funds. After sentencing Aversa and a “co-conspirator” to a mandatory prison term, Judge Martin Loughlin wrote:
Defendants should never have been prosecuted for structuring currency transactions... where evidence showed that defendants were not attempting to avoid paying tax on money or disguise where it came from...The evidence shows that [Aversa] did not believe that [he] was breaking any law... There is only one explanation for the bringing of these charges—it was easy.1
50,000 Lawsuits, Each Day
Battles waged in U.S. courtrooms over divorces, wills and other money matters are proliferating. More than 80% of the world’s lawyers practice in the United States. Over 50,000 lawsuits are filed every day in the United States.2 Each year, the “tort system” costs the U.S. economy nearly $1 trillion.3
Virtually any type of disagreement may lead to a lawsuit. Disputes that may lead to lawsuits include divorce, dissolution of a business, and disagreements among relatives following the death of wealthy family member. Tort litigation—a lawsuit filed over a perceived injury—is also common. Professionals— doctors, lawyers, engineers, etc.—are frequent targets of tort litigation. If someone is injured on your property, or because of an accident you cause in a vehicle you’re driving, you may be sued for a tort claim.
One reason that lawsuits are so prevalent in the United States is that unlike most other countries, U.S. lawyers can take cases on “contingency.” The attorney receives no fees unless money is recovered from the defendant. As a result, those with chips on their shoulders can sue you, and risk nothing more than time and energy. Companies have now been formed to invest in selected U.S. lawsuits by buying a share of the settlement based on the merits of the case. Web sites like http://www.whocanisue.com match prospective litigants to attorneys willing to take their case.
Another factor encouraging civil litigation is the growing number of federal and state laws that give plaintiffs a cause of action to recover damages against employers, landlords, and other businesses. Some of the most important of these laws are the Americans with Disabilities Act4, the Fair Credit Reporting Act5, and the Racketeer Influenced and Corrupt Organizations Act6, but there are many others.
Poor economic conditions also encourage lawsuits. People sue because they’re angry, desperate, or think they can get some easy money from a deep pocket. In a severe economic downturn, there’s plenty of anger and desperation. Since the current recession began in 2007, lawyers have filed a blizzard of lawsuits connected to investment losses, worker layoffs, foreclosures, and abandoned property.7
Lawsuits are privacy destroyers. Information disclosed in a lawsuit is usually a matter of public record. And through the judicial process, a plaintiff (the person suing) is entitled to use a compulsory legal document called a subpoena to obtain books, records, and other documents. You (and your opponent) can subpoena many types of records, including banking and brokerage transactions, computer records, utility records, and closed circuit television records, just to name a few. Some documents are subject to greater protection—medical records and the content of e-mail messages, but there are many ways to get the information.8
This process is called “discovery.” If you refuse to cooperate, the court can compel discovery with fines and even arrest. If you lie, and are later found out, you may be charged with perjury, a criminal offense. You may not refuse to