Neonatology Associates, P.A., et al - Page 13




                                               - 13 -                                                  
            Medical Profession Association, respectively.  PES established,                            
            manages, and controls both of these associations, neither of                               
            which is a valid or operating professional association.  PES                               
            established both associations for the sole purpose of forming the                          
            subject VEBA’s and of furthering its VEBA scheme by misleading                             
            targeted investor/medical professionals into believing that                                
            respectable, established medical associations were sponsoring an                           
            investment in the VEBA’s.  PES named the VEBA’s after the medical                          
            profession to attempt further to legitimize its sale of the                                
            advertised tax benefits with the targeted investors.  PES paid an                          
            established medical society, the Medical Society of New Jersey, a                          
            voluntary society of physicians and surgeons operating in the                              
            State of New Jersey, approximately $25,000 to endorse the SC VEBA                          
            as a final attempt to legitimize its scheme.  PES represented to                           
            the Medical Society of New Jersey that the SC VEBA provided                                
            medical professionals with tax-deductible payments for high                                
            policy limits of life insurance and the potential to convert some                          
            or all of those payments into annuities or cash value life                                 
            insurance which would allow the policyholders ultimately to                                
            withdraw that cash value tax free.                                                         
                  The subject VEBA’s are structured so that each participating                         
            employer establishes its own plan thereunder, executes its own                             
            plan document, and has a plan name that bears its own name.  Each                          
            employer, with the aid of an insurance salesman (primarily Mr.                             






Page:  Previous  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  Next

Last modified: May 25, 2011