Marvin L. Barmes and Barbara J. Barmes - Page 27




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          was an entity that drafted for a fee so-called “Pure Trust                  
          Organizations” (pure trust organizations).  At those times,                 
          Sovereignty sold pure trust organizations through promotional               
          materials.  The promotional materials used by Sovereignty during            
          the year at issue were substantially the same as those that it              
          used during 1998 (Sovereignty promotional materials).  The                  
          Sovereignty promotional materials identified an individual named            
          Lynne Meredith as the person who drafted the pure trust organiza-           
          tion documents that were sold by Sovereignty.  Those materials              
          stated:  “Your customized Pure Trust Organization(s) will be                
          mailed within 15 working days from the date that we receive your            
          completed application.”                                                     
               Under the heading “ADVANTAGES OF A PURE TRUST ORGANIZATION”,           
          the Sovereignty promotional materials stated in pertinent part:             
               1.   NO INCOME TAX REQUIREMENTS!  As verified by the                   
                    I.R.S., “A Pure Trust Organization has no tax                     
                    requirements!” * * * A Pure Trust is not required                 
                    to pay income tax on its earnings, gains or prof-                 
                    its.  It does not file a tax return!                              
               2.   COMPLETE PRIVACY.  A Pure Trust Organization holds                
                    assets, conducts business, and does banking in                    
                    complete privacy.  IT IS NOT REQUIRED TO HAVE A                   
                    SOCIAL SECURITY, E.I.N, OR OTHER FEDERAL IDENTIFI-                
                    CATION NUMBER!  Information about the assets,                     
                    liabilities, and management of Pure Trust Organi-                 
                    zations are completely confidential and are not                   
                    accessible to the government or to the public.                    
               3.   IRONCLAD ASSET PROTECTION!  A Pure Trust Organiza-                
                    tion protects property from unscrupulous judgment                 
                    creditors, tax liens, levies and seizures, law-                   
                    suits, divorce claims and bankruptcy.                             






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Last modified: May 25, 2011