- 35 -
The Sovereignty promotional materials included copies of two
letters. The first was a letter dated March 29, 1996, written by
“Gregory P. Karl, CPA”, and addressed to “Chuck Felthaus, Chief-
Accounting Branch, Internal Revenue Service” in Philadelphia,
Pennsylvania (Karl letter). The second was a letter dated
December 17, 1996, written by “Charles F. Felthaus, Chief,
Accounting Branch”, and addressed to “Gregory Paul Karl”
(Felthaus letter). The Karl letter stated in pertinent part:
I have a number of Pure Trust clients and I have an
urgent request. Please let me know the income tax
requirements for a Pure Trust Organization as well as
the proper procedure for obtaining an Internal Revenue
Service issued Employer Identification Number for them.
The Felthaus letter stated in pertinent part: “We cannot process
your application for a [sic] Employer Identification Number. A
Pure Trust organization has no tax requirements, therefore a
[sic] Employer Identification Number is not required.”
The Sovereignty promotional materials also included a
document entitled “Pure Trust Organization Application” (applica-
tion). The application requested certain information, including
the “settlor’s”22 name and address, the name of the pure trust
organization, the names of the trustees, whether each trustee was
to have signatory authority over any bank accounts, the names of
the beneficiaries, and the number of so-called capital units each
22The application stated: “The Settlor(s) is/are the indi-
vidual(s) who will be transferring property into the ‘Trust
Estate’”.
Page: Previous 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 NextLast modified: May 25, 2011