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St. Louis Post-Dispatch

Lee Enterprises

Wednesday, July 23, 2008 3:57 PM CDT
Jury convicts three in tax fraud case

PEORIA – A federal jury returned guilty verdicts Tuesday against Kenton W. Tylman and Debra J. Hills, both of Charleston, for their participation in a tax fraud conspiracy that marketed and sold sham trusts and financial packages to shelter taxpayers’ income from the Internal Revenue Service.

The third defendant, Brent A. Winters of California, formerly of Charleston and a former candidate for Congress, was acquitted of the conspiracy charge but convicted of filing a false tax return. Sentencing for the defendants is scheduled on Oct. 31 before U.S. District Judge Michael M. Mihm.

During four weeks of trial, the government presented evidence that beginning in 1995, Tylman began selling “trusts” and related financial arrangements for the Aegis Company in Palos Hills. In 1998, Hills joined Tylman in the sale and promotion of the “trusts.” During 1999 and 2000, Tylman and Hills sold “trust” packages using the business names of Worldwide Financial Services and Worldwide Financial and Legal Association. Purchasers of the so-called “trusts” were charged as much as $40,000 for their services. Tylman and Hills benefitted from the sales; receiving a percentage of the purchase price, as well as commissions and management fees.

The jury acquitted Winters, of the conspiracy; however, he was convicted of filing a false U.S. Individual Income Tax Return for the 1998 tax year.

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mytwocents wrote on Jul 24, 2008 7:12 AM:

" Tax avoidance has always been legal and is encouraged by the IRS as a means to reduce ones taxes.

It is a sad day when the IRS goes after honest people who openingly offer tax avoidance without any intent to defraud, and then uses lies, dirty tricks, and illegal procedures to convict them, resulting in these people spending years in jail at tax payer expense.

We need to abolish the IRS and pay a straight percentage tax. This would be fair but of course will be opposed by special interests. "

Early Bird wrote on Jul 26, 2008 5:20 AM:

" I wouldn't disagree with your idea of replacing the current system of taxation, mytwocents.

Having said that, I would like to hear you explain your charge that the IRS lied, use dirty tricks, and illegal procedures to convict these folks. It sounds to me like they just got caught trying to get out of paying their taxes. None of us enjoy paying taxes, but most of us don't break the law in an attempt to beat them.

If these things did happen, it would seem to me that they would have a pretty good chance of getting this conviction overturned on an appeal. I doubt that will happen because I seriously doubt any of your claims are valid. I suspect they are merely the results of your frustration over what happened to these folks who simply got caught.

By the way, I'm not a big fan of the aggressive tactics used by the IRS, but I do think your description of their methods used in going after tax dodgers was a bit over the top.

Considering the enormous number of people involved and special interests that have a stake in the continuation of the current system, it would be difficult to change it, and I doubt it ever will be eliminated or replaced with a better system. There's just too much special interest money involved. "