FOR IMMEDIATE RELEASE TAX

MONDAY, NOVEMBER 27, 2006 (202) 514-2007

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

Self-proclaimed CPA Pleads Guilty

for Role in Tax and Investment Fraud
Scheme
11th Defendant Pleads Guilty in Promotion of
Scheme
WASHINGTON - Lanny R. White of Orem, Utah pleaded guilty in Salt Lake City
federal district court to a felony charge of conspiracy to defraud the United States
and to commit mail and wire fraud, in connection with the promotion of a tax and
investment fraud scheme, the Justice Department and the Internal Revenue Service
(IRS) announced today.

In April 2003, White, David J. Orr, attorneys Todd R. Cannon and Michael
Behunin, and Certified Public Accountant (CPA) Max Lloyd were indicted for
promoting and selling a fraudulent trust scheme to over 300 clients that defrauded
the United States of millions of dollars in tax revenue. Today's guilty plea brings the
number of individuals who have pleaded guilty in this case to 11, including four
attorneys and one certified public accountant. “People who hold themselves out as
licensed professionals and help others evade taxes do more than damage the
reputation of honest professionals,” said Eileen J. O’Connor, Assistant Attorney
General for the Justice Department’s Tax Division. “By defrauding the federal
Treasury, they harm all honest taxpayers. The Department of Justice is working
vigorously to prosecute these tax fraud promoters.”

According to the plea agreement, White admitted that from 1993 to 2004, he and his
co-conspirators—using the names Advanta Strategies, World Contractual Services,
Rockwell Services, CornerStone West, Ventures Limited, and Whiven Financial—
marketed and sold a fraudulent trust scheme to over 300 clients through seminars,
promotional materials, and opinion letters. White and his co-conspirators falsely
represented to clients that by placing their businesses and assets into the names of
trusts, the clients could lawfully eliminate or substantially reduce their income tax
liabilities.
“Those who promote the use of abusive trusts and tax schemes for the purpose of
evading taxes harm our system of taxation, harm many of their investors and are
engaging in criminal activity,” said Nancy Jardini, IRS Chief, Criminal
Investigations. ”We will continue to shut down fraudulent tax schemes and hold the
promoters of these schemes accountable for their actions.”

White admitted that, as part of his role in the conspiracy, he falsely claimed to be a
licensed CPA and used his brother's CPA license numbers, without his brother's
knowledge. White also admitted to preparing opinion letters that falsely assured the
legality of the tax benefits of the fraudulent trust scheme and that he promoted the
scheme at offshore seminars hosted by the “Institute of Global Prosperity.” Several
individuals associated with Global Prosperity have been convicted of felony tax
charges in the Western District of Washington. White acknowledged that his
actions, which resulted in the filing of more than 2,000 false and fraudulent federal
income and trust tax returns, caused a loss of federal tax revenue totaling between
$7 million and $10 million.

Additionally, White acknowledged that he and others conspired to use the U.S. mail
and interstate wire communications to obtain over $5 million and property from
clients through false and fraudulent misrepresentations. White also admitted to
placing clients’ assets in unsound “investments” in international financial markets
and other offshore “investing opportunities” that he knew would put the clients’
funds at considerable risk and would never, in fact, pay any return.

White faces a potential maximum sentence of five years in prison followed by up to

three years of supervised release, a $250,000 fine and liability for the costs of
prosecution. U.S. District Judge Ted Stewart scheduled sentencing for February 26,
2007.

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