UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
Holding a Criminal Term
Grand Jury Sworn in on October 31, 2003
UNITED STATES OF AMERICA
Criminal No. 05-66
Grand Jury Original
26 U.S.C. § 7212(a) (Corruptly
Obstructing, Impeding, and
Impairing the Due Administration
of the Internal Revenue Laws);
26 U.S.C. § 7201 (Tax Evasion);
22 D.C. Code § 3221(a)
(Fraud in the First Degree).
The Grand Jury charges:
At all times relevant to the Indictment:INTRODUCTION
Defendant, WALTER ANDERSON (“ANDERSON”), was a citizen of the United States
and a resident of the District of Columbia;
According to the revenue laws of the United States, citizens of the United States were
obligated to pay taxes on their worldwide income.
According to the laws of the United States, citizens of the United States who controlled a
foreign corporation were required to pay income taxes on certain income of the foreign
corporation. Generally, United States citizen owners of the foreign corporation were
subject to tax on investment type income of the foreign corporation.
The British Virgin Islands (“BVI”), Jersey Channel Islands (“Jersey”), and the Republic
of Panama (“Panama”), among others, were foreign countries that were commonly
referred to as “tax havens” because these countries afforded greater bank and commercial
secrecy than other countries, including the United States.
In these tax haven countries, corporate service companies existed to incorporate
International Business Corporations (“IBCs”). Under the laws of these tax haven
countries, IBCs were not required to pay taxes to the tax haven on income earned outside
the borders of the tax haven.
In addition to filing required documentation with the tax haven governments, the
corporate service company could provide additional services for a fee. These services
included acting as the registered agent and a nominee director for the IBC. The nomi