How The IRS Steals Estates From Beneficiaries & Heirs

By Edward Snook
Investigative Reporter

Editor’s Note: Read this invaluable article very carefully and you will clearly see how Jackson County Clerk Kathy Beckett, Lawyer’s Title Company, two county attorneys, one state judge and two federal judges aid and abet the IRS in their “crimes of financial rape”. In Jackson County, Oregon this happens several hundred times each year, you just don’t hear about it.

The cornerstone of justice in this nation used to be due process of law – however, the out-of-control IRS, for decades has been simply pulling figures (they say is owed) out of thin air, attaching it to a person using an uncertified notice and then confiscating their property. No trial, no court and absolutely no due process!

Jackson County, OR – Over the last seventeen years, IRS Revenue Officer (RO) Art Trainor has made Bruce and Caroline Carpenter’s lives a virtual hell by pursuing the Carpenters as if he were waging some kind of personal war against some horrible criminals. Is this any way to treat an old World War II veteran and his family? From day one this non-statutory agency planned to intimidate, control and break the Carpenter family (the targets), whose alleged offenses were setting up a lawful trust for their daughter and type 1 Diabetic grandson and the fact they resisted paying claimed taxes without a procedurally proper and lawful assessment being issued. Although the Carpenters are hard working people who feel they have an obligation to their beneficiaries, they seem to fall short in their sense of reality by thinking they are innocent until proven guilty, as quaint as that notion is. As the trustee/agents of these lawful trusts, the Carpenters have followed all lawful procedures and still think that justice will prevail since they believe that they live in a free society. They have mistakenly overlooked the thousand “ifs” before the word free.

Caroline and Bruce Carpenter, “targets” of the IRS.

The Carpenters’ lives have been decimated. The result of this unwarranted IRS attack on Bruce Carpenter has made it impossible for him to have normal relationships with the business community. They and everyone else who falls into this trap will never be secure in their own person again. Why, because their social security numbers will be made public record (a federal crime to do so), not to mention the fact that they will be financially damaged to the tune of hundreds of thousands of dollars. Hope and pray that the events in this article never happen to you.

Beginning the Vicious Attack

To fabricate a crime without probable cause you need a rogue and unaccountable agency. In this instance low level IRS RO, Art Trainor is part of such an agency that attempts to steal the trusts’ assets from the beneficiaries, complicit in the knowledge that the proper, lawful and valid assessment procedures have not been followed. The target never knows how or why he owes the amounts of tax they say he owes without certification of the IRS claims. The agency’s employees make a calculated, arbitrary and erroneous claim against targeted beneficiaries and trustee/agents of the Irrevocable Trusts (actually all trusts’ assets belong to the beneficiaries of the trusts), resulting in a filing of an unlawful Notice of Federal Tax Lien (NFTLs) against the beneficiaries’ property by an overly zealous and immoral revenue officer, without any semblance of due process of law.

Since this case started in 1990, the trustee/agents have spent 13 years out of the last 17 attempting to correct the wrongs, settle with the IRS and recoup their lives. In October 2003, the trustee/agents’ lawyer addressed the NFTLs by preparing eleven invalid encumbrance notices as defined in the Oregon Revised Statutes and presented them to Jackson County Clerk Kathy Beckett for filing in the Jackson County records This action would have removed the NFTLs from the title of the property held in trusts for the beneficiaries. Beckett refused.

Beckett’s refusal left the property title clouded, thus necessitating the trustee/agents’ legal counsel to immediately file a Writ of Mandamus (as defined by Nolo.com: A writ of mandamus is a court order that requires another court, government official, public body, corporation or individual to perform a certain act) in the Jackson County Circuit Court of Judge William G. Purdy to force Beckett to file the invalid encumbrance notices in order to remove the uncertified NFTLs. Judge Purdy, upon reading the Mandamus and looking up the statute agreed with the petitioners’ counsel and signed a Peremptory Writ of Mandamus ordering Beckett to follow proper procedures regarding the filing of encumbrance notices. The county recorder still refused in defiance of a valid court order. The questions begging an answer deal with the source of Beckett’s income. Is she working for the county, is she subcontracted with another organization, or, like others, is she simply scared to death of the IRS?

The Carpenters subsequently obtained, through the Freedom of Information Act (FOIA), a copy of their Complete Transcript Entity Summary Information file (ICS History) dated 9/17/04. During discovery, Department of Justice employee and attorney for the IRS Kelly Blaine inadvertently supplied the targets a copy (his copy) of another ICS History file dated 7/14/04. This ICS History has agent Trainor’s unabridged notes, as well as other authorities’ involved with the case. After close examination of both ICS Histories there appears to be many discrepancies between the two – proof of criminal conduct by the conspirators who deleted items or made certain changes… sound familiar? Early on the trustee/agents, in their attempt to expose the deceit and many false statements, hired Forensic Accountant, Certified Fraud Examiner and expert court witness Victoria Osborn. Her sworn Affidavit verifies that Art Trainor knew that his actions were unlawful. This information will definitely be presented in the trial scheduled for December.

The July 2004 ICS History file proves an embarrassment to the government because Trainor makes an entry detailing how Steve Rinkle, assistant to Jackson County Counsel Mike Jewett called Trainor seeking help due to the trustee/agents counsel’s attempt to file the invalid encumbrance notices in Jackson County records. Trainor immediately responded by contacting Kelly Blaine, through all available means, asking for high priority assistance to prevent the filing of these notices – pulling out all the stops.

Jewett and Rinkle, with assistance from Trainor, persuaded Judge Purdy to withdraw his order in an after-hour, ex-parte hearing, without ever notifying trustee/agent’s counsel, thereby preempting the trust lawyer from making an appropriate and timely response to their antics. Purdy, Jewett and Rinkle absolutely have the same fear of this non-statutory agency that judges in general have.

Gordon Douglas, legal counsel for the Internal Revenue Service, earlier stipulated in writing that the trustee/agents didn’t own the trusts or trusts’ assets and this admission was signed off by the tax court judge. It was soon discovered that Bruce and Caroline Carpenter didn’t possess great wealth in the form of cash and property that could be targeted, so the vultures switched their focus on more easily accessible and controllable assets, anyone’s assets. Furthermore, upon doing his homework, Trainor discovers that Bruce Carpenter’s step-brother is the beneficiary of a totally separate and unrelated trust that coincidentally had the Carpenters as trustee/agents. Trainor, with all of the training of an extortionist confiscates $10,500 from the ailing 79 year old step-brother’s personal bank account using an uncertified, counterfeit and invalid “Notice of Levy.” Remarkably, this piracy was accomplished after Trainor had proof, again as recorded in ICS History, through notification from Well’s Fargo Bank, that Carpenter did not have any interest in the step-brother’s account and would not realize any possible benefit until the death of the step-brother. Trainor, unprincipled as he is, took it anyway because he has this power entrusted to him by individuals who spread their greed and corruption within our judicial system. Trainor could never accomplish his crime without the assistance of third parties – attorneys, banks, title companies, clerks, etc. If these third parties would fulfill their custodial duties to protect their clients’ assets by requiring a proper and lawful judgment before surrendering them, Trainor and his ilk would have to operate within the law. Trainor has refused to respond to the Carpenters’ many attempts to recover the ill gotten money and has retaliated against these efforts by attaching NFTLs against the step-brother’s real property, preventing him from selling his property prior to the current deflation in market values. Using these same unlawful methods Trainor has been able to extort over $140,000 from the personal accounts of the Carpenters and the beneficiaries.

With the knowledge that the NFTLs tainted the trusts’ assets and prevented their sale, the fiduciaries hands were illegally tied. In the preliminary title report, Lawyer’s Title Company then magically converts the invalid NFTLs to a negotiable instrument in the form of an invalid “Federal Tax Lien,” under the color of law, making the NFTLs appear to be a legitimate lien claim, thereby allowing the IRS to receive money from the title company and continue with their illegal collection activities. At this juncture the title company becomes an accomplice in this crime by honoring a counterfeit security. In the escrow concerning these trusts and beneficiaries’ properties, the trustee/agents requested that Assistant Vice-President Escrow Administrator Robyn Tuttle of Lawyer’s Title Company obtain a certified lien document signed by Trainor, so the alleged debt could be paid. The escrow contained liquid assets, but the revenue officer refused to provide the proper paperwork! – How odd is that?! Without question, state and federal law requires that NFTLs, Liens and Levies be certified as true, correct, and not misleading under the penalty of perjury. In this case Trainor knows full well that he cannot sign the certification, but his unlawful actions are supported by his superiors, conflicted judges, public servants, licensed title officers and of course attorneys, because they all condone these illegal acts. Conspiracy accomplished, laws violated and crimes allowed to go unpunished! The fact is that in order to have lawful possession of the property there must be a judgment from a court with jurisdiction.

Referring back to the ICS History report, Trainor writes on more than one occasion, “We must foreclose our lien.” This cannot happen lawfully until the rogue agent obtains a valid and lawful assessment claim on which to foreclose.

Chameleon-like IRS revenue agents often change the definition of the trusts’ intent depending on the situation they are facing. Nominees and alter egos are two common references to trustee/agents. With the planned destruction of all the trusts’ assets and trustee/agents in place the trustee/agents are left only with the option of filing bankruptcy, in an effort to have themselves defined outside of the trusts, thus enabling them to protect the beneficiaries’ assets from the tax mongers. Our readership should realize that trust assets are in reality no different than individual assets as far as the IRS is concerned.

The Carpenters were forced to file a personal Chapter 7 (no asset) Bankruptcy case in Eugene, Oregon, listing the only alleged creditors they have – the IRS and State of Oregon. In this case, Federal Bankruptcy Judge Frank R. Alley III makes some very controversial rulings in March 2005, by ordering the property sold and the proceeds held by Bankruptcy Trustee Candace Amborn. Alley, by this order, converts a fraudulent claim into a counterfeit and unperfected, negotiable security. This order was given in total disregard for the trustee/agents’ arrangements to complete an IRS 1031 tax deferred exchange that was in place at the time, with the intent to save the selling trust capital gains taxes and enabling the trust to take advantage of the strong real estate market. Alley then recuses himself in May 2005, due to a conflict of interest. It should be noted that federal judges like Alley are paid from the Department of Treasury, the same agency that contracts with the Internal Revenue Service for collections.

Alley’s conflict (which existed before his ruling) in this case stems from the fact that the property was sold to Michael and Dawn DeSimone, represented by attorney Bill Fowler of Medford, Oregon. Judge Alley was formerly in a law practice with Fowler, as well as co-owner in his building, before Alley became a judge. Alley makes his ruling in favor of Bill Fowler, Fowler’s clients, the IRS and their attorney Kelly Blaine and David Mills, attorney for Bankruptcy Trustee Candace Amborn, then recuses himself due to his conflict of interest that existed long before his ruling. Too little, too late might be the best way to describe Alley’s ethics. An honest judge with integrity would have recused himself prior to hearing the case. The US~Observer attempted to contact Alley, but our efforts have been ignored. This makes one wonder why we have courts and judges.

It is worthy of note, that the main interest of David Mills and Candace Amborn is not justice, it is money. Amborn pays her attorney any amount he requests out of the trusts’/beneficiaries’ money and she pays herself based on her pay-outs ahead of both the IRS and the state. They are number one in the food chain (for money) – to hell with justice! Amborn has been busted on this issue before by the US~Observer.

Trainor’s notes, in the ICS History report, reveal he received notice from Department of Justice local counsel, “unfortunately, counsel has advised me that, unless I have some official documentation regarding the seized property, I should release it.” Carpenter subsequently received the release of levy on April 1, 2003, whereupon he immediately proceeded to the recorder’s office to record the release in public record. The office manager read the release form and in front of witnesses states, “I need to call Art Trainor about this.” This begs the question; does Trainor also work for Jackson County? According to Trainor’s ICS History notes he instructs her to file the release of Levy, but not to release the NFTLs. Since Trainor was ordered to remove the Levy for legal reasons, it is obvious that he never had a lawful right to file it in the first place. Due to his vindictive nature Trainor still blemishes the title to the beneficiaries’ property with the unlawful and invalid NFTLs.

The trustee/agents have asked the IRS to prove their claim they filed into the Bankruptcy case on Form B-10, yet the agency hasn’t provided any proof of claim to date. Not to be outwitted by the citizenry, DOJ attorney for the IRS Kelley Blaine, in November 2005, files a Summary Judgment Motion with new Federal Bankruptcy Judge Albert E. Radcliffe, thereby avoiding having to prove the impossible – the claims filed into the Bankruptcy on Form B-10. Radcliffe, safely in the pocket of the rogue agency, on May 31, 2006, grants the IRS their Summary Judgment in part and denies in part. He rules that they have a claim, but “Summary Judgment is denied as to the proof of claim’s secured status.” No cigar, no money. Again, as Frank R. Alley III did before him, Radcliffe, in July 2006, claimed a conflict of interest and ordered the case transferred from Eugene, Oregon to Judge Elizabeth L. Perris in Portland, Oregon. In a phone interview with Radcliffe’s clerk the US~Observer was informed that the judge had a conflict of interest involving himself as a trustee on a trust that is not a part of this case. According to Radcliffe the conflict is with the IRS. Unlike Judge Alley, Radcliffe did respond and informed the Observer that his conflict arose after his ruling in May 2006. Does one become a trustee in a matter of 40 days? It makes you wonder…

The trusts (through the trustee’s efforts – improvements to the property) have made it possible for Jackson County to now collect $28,500 per year in property taxes due to the improvements to the property – to the tune of over 5 million dollars. This fact alone makes any prudent person realize that this IRS attack is absolutely all about control.

The parties to this case recently agreed to have it heard in Medford, Oregon on December 7, 2007, rather than in Portland. Judge Perris is currently scheduled to hear the case. We are anxious to see whether Perris serves justice or cowers to the IRS as those who have preceded her have chosen to do. History will record her actions just as it has those of her predecessors. We know justice will prevail if Perris rules according to that which is lawful. Should Perris continue the prior abuses of those before her she can look forward to having millions of Americans informed of her actions, and all involved can begin preparing for a trip to the Ninth Circuit Court of Appeals.

Editor’s Note: When an agency has a loosing case the best angle is to continue their well-polished delay tactics and stall (17 years now), as in all cases, time is on their side. Stay tuned for follow up articles on this case.