FOR IMMEDIATE RELEASE TAX

THURSDAY, SEPTEMBER 20, (202) 514-2007

1906 TDD (202) 514-1888
WWW.USDOJ.GOV

Court Bars Promotion of “Corporation

Sole” Tax Fraud Scheme
Rhode Island Man Allegedly Sold Scheme
Nationwide
WASHINGTON – Eric Messier of Providence, Rhode Island has consented to a
federal court order permanently barring him from marketing a tax fraud scheme, the
Justice Department announced today. According to the complaint filed by the
Department’s Tax Division, Messier falsely advised customers that, by using a so-
called “corporation sole,” they could avoid paying federal income taxes. Messier
was conducting business through the Liberty Fellowship and the Liberty Holdings
Trust.

According to the government’s complaint filed in U.S. District Court in Rhode

Island, customers paid Messier between $2,500 and $10,000 to participate in the
corporation sole scheme. Some states authorize religious leaders to hold property
and conduct their activities in what is known as a corporation sole, but tax benefits
are available only for organizations that qualify as religious or charitable
organizations under the Internal Revenue Code. The complaint alleges that Messier
falsely tells customers that they can treat their corporations sole as a “church” with
no tax-return filing requirement, and yet control and use its assets and income for
their own personal benefit.

The court’s order requires Messier to remove from his website all information
advertising the corporation sole scheme, to prominently display on his website for at
least one year a copy of the permanent injunction entered against him, and to give
the government a list of his customers’ names, addresses, phone numbers, and
taxpayer identification numbers. Messier must comply with the court’s order within
15 days. Within 60 days, he must certify to the court that he has, at his own
expense, notified all customers who bought the corporation sole scheme and became
members of the Liberty Fellowship and provided each of them with a copy of the
permanent injunction and stipulated settlement.

Corporation sole scams are included in IRS’s annual list of the “Dirty Dozen” tax
scams http://www.irs.gov/newsroom/article/0,,id=136337,00.html. The Justice
Department has obtained permanent injunctions against numerous individuals who
sell corporation sole scams. Examples are found at
http://www.usdoj.gov/tax/txdv06587.htm, http://www.usdoj.gov/tax/txdv05657.htm
and http://www.usdoj.gov/tax/txdv05030.htm.

Since 2001, the Justice Department has obtained injunctions against more than 200
tax-fraud promoters and return preparers More information about the Justice
Department's efforts against tax-scam promoters and fraudulent return preparers 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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