FOR IMMEDIATE RELEASE TAX

THURSDAY, FEBRUARY 2, 2006 (202) 514-2007

WWW.USDOJ.GOV TDD (202) 514-1888

Justice Department Sues

to Bar Michigan Man’s Alleged Tax-
Fraud Schemes
Muskegon County Man Allegedly Sold “Corporation
Sole” Program
WASHINGTON, D.C. - The Justice Department today filed a civil injunction suit
seeking to bar Daniel Doyle Benham of Twin Lake, Michigan, from marketing
alleged tax-fraud schemes. The complaint, filed in the U.S. District Court for the
Western District of Michigan in Grand Rapids, alleges that Benham, conducting
business as R.O.C. Group International, falsely advises prospective customers that
they can use so-called “corporation sole” and “strategic withdrawal” schemes to
remove themselves from the federal tax system and avoid paying federal income
taxes. The complaint also seeks an order directing Benham to provide the
government with a list of his customers’ names, mailing and e-mail addresses, and
telephone and Social Security numbers.

According to the complaint, at least 50 persons have each paid Benham—through a

website—amounts ranging from $200 to $5,000 to participate in his tax-fraud
schemes. Benham allegedly advises customers to file for bankruptcy and to revoke
their drivers’ licenses and prior tax returns, falsely claiming that these actions will
help customers remove themselves from the federal tax system. Benham, the
complaint alleges, falsely tells his customers they can conceal their income and
assets in a “corporation sole.” The suit asks the court to bar Benham from
continuing the programs, which the suit says have cost the U.S. Treasury an
estimated $2 million in lost tax revenue.

“Honest taxpayers can be assured that the IRS and Justice Department are taking
action to halt the promotion of tax fraud,” said Eileen J. O’Connor, Assistant
Attorney General for the Justice Department’s Tax Division.

“The IRS and the Tax Division are diligently working together to address fraudulent
tax promotions,” said Kevin M. Brown, Commissioner of the IRS Small
Business/Self-Employed Division. “I encourage the public to bring questionable
promotions and abusive preparers to our attention. We give serious attention to
every referral we receive.”

“Corporations sole” are one of the IRS’s Dirty Dozen tax scams. They are listed at
http://www.irs.gov/newsroom/article/0,,id=136337,00.html.

More information about the Justice Department’s efforts against tax-scam promoters
can be found at http://www.usdoj.gov/tax/taxpress2006.htm. Information about the
Justice Department’s Tax Division can be found at http://www.usdoj.gov/tax.

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