PONZI SCHEME?

Losses From Ponzi-Type Investment Schemes

The IRS has issued the following guidance to assist taxpayers who are victims of losses from Ponzi-type investment schemes.

• Revenue Ruling 2009-9, 2009-14 I.R.B. 735
  (available at available at IRS.gov/irb/2009-14_IRB#RR-2009-9).
  
  
• Revenue Procedure 2009-20, 2009-14 I.R.B. 749
  (available at IRS.gov/irb/2009-14_IRB#RP-2009-20).
  
  
• Revenue Procedure 2011-58, 2011-50 I.R.B. 849
  (available at IRS.gov/irb/2011-50_IRB#RP-2011-58).

Have you, or someone you know, been the victim of a United States or Jordanian Ponzi scheme perpetrated Samir “Judah” Khalaf or Kelli Gardner Marshall?

Ask your accountant, tax advisor, or financial consultant about Rev. Rul. 2009-9: Tax treatment of losses. https://www.irs.gov/irb/2009-14_IRB#RR-2009-9

This ruling addresses the tax treatment of losses from criminally fraudulent investment arrangements that take the form of “Ponzi” schemes.

As listed on the IRS website, this ruling and your professional service provider can provide insights on answering key questions about your investment:

ISSUES

(1) Is a loss from criminal fraud or embezzlement in a transaction entered into for profit a theft loss or a capital loss under § 165 of the Internal Revenue Code?

The ruling goes on to explain:

For federal income tax purposes, “theft” is a word of general and broad connotation, covering any criminal appropriation of another’s property to the use of the taker, including theft by swindling, false pretenses and any other form of guile. Edwards v. Bromberg, 232 F.2d 107 (5th Cir. 1956); see also § 1.165-8(d) of the Income Tax Regulations (“theft” includes larceny and embezzlement).

THEFT?

In their report, the independent investigators highlight critical factual realities of the land in question relative to “false pretenses” noted in the IRS guidance on Ponzi schemes.

In particular, the investigators found inconsistencies related to land size, condition, location, and value as Samir purported in the conversations, material, and documentation provided to investors as far back as 2008.

IRS audit submissions by Samir “Judah” Khalaf, once translated from Arabic to English, would even prove to contain false information on land plot data.

PLEASE CONTACT

If you, or someone you know, believes they have been the victim of a Ponzi scheme perpetrated by Samir “Judah” Khalaf or Kelli Gardner Marshall in the United States, Jordan, or anywhere else in the world, please contact us to share any information on the fraudulent activity you may have.