- 57 -
petitioners’ trust structure was generated through sales of an
illegal product.
Mr. Richardson’s failure to heed warnings with respect to
the improper nature of the Aegis trust structure and analogous
schemes likewise has bearing on his state of mind and intentions
at the time he chose to purchase and use the package.
Specifically, the failure suggests that the legality of the
arrangement was of little concern to Mr. Richardson.
Mr. Richardson was aware of Notice 97-24, 1997-1 C.B. 409, by
June of 1997. He was contacted by Ms. Vaselaney between late
1999 and early 2001. The magistrate judge in the section 6700
proceeding initially recommended a preliminary injunction, based
on Mr. Richardson’s participation in what was characterized as an
“illogical and illegal” scheme, in November of 2003. United
States v. Graham, No. 1:03cv96, 2003 WL 23169851, at *7 (S.D.
Ohio Nov. 19, 2003). In the face of all these warnings, it would
seem that an individual truly interested in a legitimate
arrangement would have at least sought out an independent
evaluation, rather than continuing to align him- or herself with
insiders, many of whom had questionable qualifications.
In summary, the majority of the badges of fraud considered
by this and other courts are present here. Accordingly, the
Court concludes that the circumstantial indicia revealed by the
record in these cases establish by clear and convincing evidence
that Mr. Richardson intended through his use of the Aegis trust
Page: Previous 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 NextLast modified: May 25, 2011