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» hairie13 - Wade Cook Found Guilty

FLASH BULLETIN:

SEATTLE, WASHINGTON

FEBRUARY 22, 2007, 7pm (PST)

WADE COOK FOUND GUILTY OF TAX FRAUD.

Breaking News...More to come.......

-- posted by hairie13

» hairie13 - Wade Guilty; No Verdict on Laura.

Wade Cook guilty in tax case
No verdict on charges against Laura Cook

Tuesday, February 20, 2007

By DAN RICHMAN
P-I REPORTER

A federal jury on Tuesday afternoon convicted bankrupt financial adviser Wade Cook on seven counts of tax fraud.

The jury failed to reach any conclusions about the guilt of his wife, Laura.

Cook, 57, was found guilty of evading federal income tax in 1998 through 2000 on royalty payments of $9.5 million, filing false returns those years and obstructing federal investigations into his actions.

"It's a sad day. The media lied too much in the papers," Wade Cook said as he exited the courtroom. Laura Cook had no comment.

He faces penalties of up to $1.75 million and 40 years in jail. U.S. District Judge Thomas Zilly set a sentencing date of June 22 and denied the U.S. government's request to take Wade Cook into custody.

The 12-person jury said it couldn't reach a unanimous verdict on an eighth count: whether the defendants agreed to defraud the government.

The federal government can choose to re-try that count, and all the counts against Laura Cook, 54, if it chooses, without violating the constitutional prohibition on double jeopardy. Emily Langlie, a spokeswoman for the U.S. Attorney's Office in Seattle, said she didn't know yet whether it will do so.

The Cooks, of Fall City, were each accused of evading income tax in 1998-2000 on $9.5 million in royalties from their publications and seminars, filing falsified tax returns those years and obstructing a later IRS investigation.

The primary issue in the trial was whether the Cooks deliberately cheated the government by creating a complex network of interrelated trusts and limited partnerships and then shifting money among them, spending much of it on themselves.

They contended they merely loaned themselves money, and because loans aren't taxable as income, they owed no taxes.

The government contended the couple never intended to repay the money they gave themselves, so the payments weren't loans.

-- posted by hairie13

» hairie13 - Laura Cook pleads guity in plea agreement

SEATTLE POST-INTELLIGENCER

Laura Cook admits tax charges
She faces prison term and fine

By DAN RICHMAN
P-I REPORTER

Laura Cook, the wife of convicted tax cheat Wade Cook, pleaded guilty Wednesday(May 16, 2007)to obstructing federal tax laws. She faces up to three years in prison and a fine of up to $250,000.

Cook, 54, also may be required to repay as much as $3.8 million in federal income taxes that she acknowledged failing to pay in 1998, 1999 and 2000.

After a one-month trial of the Fall City couple earlier this year, a jury convicted Wade Cook on seven counts of tax fraud. But co-defendant Laura Cook went free because the jurors couldn't agree on verdicts in her case.

During the trial, the jury twice declared itself unable to reach a decision, and then returned with a verdict just minutes after its second such declaration.

That unusual jury behavior may have indicated that the government's case was less than totally persuasive, so that Laura Cook would have had a good chance of being acquitted in a retrial, acknowledged Jeff Robinson, one of her lawyers.

"It was a very difficult decision, but Laura did not feel she was capable of going through another trial," Robinson said after the one-hour hearing.

"Going through a federal trial is a stressful situation, and she wanted to end it."

Rather than retry the complex case, "we believe the interests of justice are best served by settling this matter," said Assistant U.S. Attorney Bob Westinghouse after U.S. District Judge James Robart accepted the 10-page plea agreement.

"It's a fair and equitable result," Westinghouse said.

He said the government will recommend a prison term of 15 months, but the sentencing judge is free to impose any term up to the three-year legal maximum. Sentencing, by U.S. District Judge Thomas Zilly, will probably occur within 90 days, Robinson said.

Zilly, who presided over the trial, was on vacation Wednesday.

Angelo Calfo, who represented Wade Cook, said he will ask that his client's sentencing, now scheduled for June 22, be delayed and rescheduled for the same time as his wife's sentencing.

Calfo also said he plans to appeal Wade Cook's conviction after his sentencing, although an earlier motion for a new trial was denied.

Laura Cook, a high school graduate, kept the books for her husband, who achieved nationwide fame and made millions of dollars in the 1990s dispensing advice on how to trade stocks, buy real estate and pay less in taxes.

They live on a horse ranch and once had a net worth of $200 million. The Cooks remain out of custody, although they have surrendered their passports.

Wade Cook, 57, was not present in court Wednesday. In her plea agreement, Laura Cook waives the right to avoid testifying against her husband at any future trial. But, her lawyer said, "We made it clear she will go to jail before she would testify against him. She has supported him throughout, and that's not going to change."

-- posted by hairie13

» hairie13 - Wade Gets 88 Month Sentence

Suite 101: EXCLUSIVE REPORT
By Hairie13

Thursday in U.S. Federal Court in Seattle, Wade and Laura Cook, were sentenced to 88 months and 18 months respectively.

Before the trial began, Wade was able to give Laura a few smiles and chuckles. The small public seating area of the courtroom was heavily filled with the Cook's family members and friends.

Before sentencing, Wade Cook's attorney, Angelo Calfo, who specializes in white-collar crime, put the best spin he could on the charges against Wade Cook, arguing that Wade Cook, the person, was not the business enitity or tax shelters he was operating. Thus, was not libel for any unpaid taxes. It was an issue of personal versus business debt.
Judge Thomas Zilly, interrupted and said, "well, somone made $ 9,500,000 in income and didn't pay any taxes on it." The judge also mentioned when Laura Cook plead guity in a plea agreement, she admitted they knowingly filed false tax returns for the years 1998, 1999 and 2000.

Judge Zilly said the Cooks owe over $3,700,000 in back taxes. Calfo argued that those figures are based on being in the 39% tax bracket and the Cooks are in the 28% bracket. The judge asid the tax code is clear. Income over $ 278,000 puts you in the 39% tax bracket. Calfo stated that according to his figures, the most the cooks owe is $ 13,000.

The judge argued that the Cook's complicated limited partnerships were used as a tax-free bank account for the Cooks.

Wade Cook was taking constant notes of the proceedings on a large, yellow legal pad.
The Judge then asked if Wade Cook had anything to say for himself. His attorney said he advised his client not to speak before the court.

Then, Federal Prosecuting Attorney, Bob Westinghouse, argued that Wade Cook is as defiant today as the day he was charged. He believes he's not guilty and has told people around him he's not guitly. Westinghouse said, "Wade Cook is prepared to blame everyone else other than himself. He refuses to accept responsibility for the fraud he committed. "Wade Cook is seen shaking his head sidways in disbelief, while Westinghouse is making his accusations.

Westinghouse further argues, the Cooks have filed no income taxes since 2000 and have used the Mormon Church as part of their sophisticated attempt at tax evasion.
"He (Cook) shows no contriteness for what he's done wrong". He's still promoting his tax shelters and wealth creating advice on his website.

Before passing sentence on Wade Cook, Judge Zilly, said one on hand Wade Cook portrays himself as an expert on Asset Protection and Stock Trading. He's a family man and involved in his church. But there's a dark side of Mr. Cook:
In 1990 he was convicted of selling unregistered securities. From 1993 to 1996, he filed no Income Taxes, but later settled with the IRS. Judge Zilly said, "apparently you didn't get the message", because within a year, he created his "Never Ending Wealth" and Charitable Trust.

Wade stood at the podium with his attorney during his sentencing. The Judge then sentenced him to 88 month (7years, 4 months) in prison. The judge gave him five to six weeks to get his affairs in order before surrendering himself to Federal Authorities.
Wade had no expression on his face when the sentence was first read. He walked away with a "fed up" look on his face.

Laura shed a few tears as did his daughters during Wade's sentencing. It was at this point, the sentencing hearing took on a sad, depressing tone and started to feel more like a funeral service for the Cooks than a court trial.

Laura Cook's attorney, described this day as the worst day in Laura Cook's life. He described her as a good wife and mother who home schooled her chilren. He asked the Judge to consider what sending her to jail would do to her family. Her attorney recommended no jail time for her.

Prosecuting Attorney, Bob Westinghouse, argued that Laura Cook created a fake, back-dated promissory note in an attempt ot make it appear the money taken out of the trust funds were a loan, when in fact, it was all an attempt to decieve the government.

Before passing sentence, Judge Zilly mentioned that Laura Cook gave false testimony under oath and gave him (Judge Zilly) false testimony to use on her behalf in her trial.

The Judge sentenced Laura Cook to 18 Months in prison. Laura didn't shed a tear, but Wade Cook began crying. Having Laura sentenced to prison, finally broke Wade's defiant personality for a moment. As Laura walked back from the podium, she walked by the chair Wade was sitting in. Wade, still seated, hugged Laura, with his head in her chest.

After Laura's sentencing, Wade was sitting by himself on a court bench in tears, being comforted by what appearted to be one his daughters.

For that moment, he truly looked like a broken man.

-- posted by hairie13

» hairie13 - Wade & Laura Sentenced

SEATTLE POST-INTELLIGENCER
http://seattlepi.nwsource.com/business/3...

Wade Cook gets 88 months in prison
Laura Cook sentenced to 18 months

Last updated August 2, 2007 11:55 p.m. PT

By DAN RICHMAN
P-I REPORTER

Self-styled financial guru Wade Cook, 57, was sentenced Thursday to seven years and four months in federal prison for income tax evasion, filing false tax returns and obstructing a tax investigation.

His wife, Laura, 54, was sentenced to 18 months in a separate federal prison after pleading guilty in May to obstructing the investigation.

"Mr. Cook is in many ways an upstanding citizen, but there is another, rather dark side to Mr. Cook that needs to be considered by the court," U.S. District Judge Thomas Zilly said before imposing sentence, addressing a courtroom packed with family members.

As for Laura Cook, he said, "It's very troubling to me -- that not only did you participate with your husband in the fraud, but you lied under oath twice and tried to use that false testimony in trial before me."

Zilly, who presided over the Fall City couple's four-week trial last winter, let the couple remain free for the next five to six weeks to get their affairs in order before surrendering to federal marshals.

Wade Cook's attorney, Angelo Calfo, said he plans to immediately appeal Cook's conviction, hoping to keep him out of prison. Laura Cook agreed when she entered her guilty plea not to appeal her sentence.

Zilly also ordered the Cooks to pay $3.8 million in federal taxes on the $9.5 million in royalties they earned but failed to declare between 1998 and 2000.

During the hearing, Wade Cook was animated, grinning at his family and occasionally laughing and shaking his head in apparent dismay as Assistant U.S. Attorney Robert Westinghouse argued before the judge. But his demeanor changed considerably after Zilly pronounced sentence.

Seemingly stunned, he sat for 10 minutes with his head in his hands. Ten feet away, Laura Cook stared down at the counsel table. Some of their daughters cried.

But, as Westinghouse noted during his remarks, "Wade Cook is as defiant today as he was the day he was charged. He blames everyone but himself."

Asked afterward to comment on the outcome, Cook remarked, "I'm not going to tell you that this judge is an asshole. I'm not going to say that."

Then, speaking to someone nearby, he added, "He probably wants me to say Westinghouse is a criminal and a liar, but I'm not going to say that, either."

Westinghouse said the judgment in each case "is clearly appropriate. ... The court clearly considered all the factors it was required to consider."

Calfo asked that Wade Cook serve his time at Sheridan, a medium-security facility for men 90 minutes south of Portland. Jeffery Robinson, an attorney for Laura Cook, asked that she serve her sentence at Geiger Correctional Center in Spokane.

Wade Cook's sentence of 88 months is well below the 121 months requested by the U.S. Attorney's Office. Laura Cook's sentence is higher than the 15 months the prosecutors sought.

Zilly said his sentencing of Wade Cook was influenced by presentencing reports that in 1990, Cook was indicted in Arizona on 18 charges of fraudulently selling unregistered securities and conducting illegal enterprises.

He said he also found significant that the Federal Trade Commission had consolidated actions in 14 states against Wade Cook for improperly taking money from investors and had imposed penalties of about $2.7 million.

He noted that the Cooks filed no personal income tax returns between 1993 and 1996. And he concluded that the intricate network of corporations and trusts the Cooks set up was "sophisticated," increasing the maximum sentence he could impose.

To Laura Cook, he said, "You have led in many respects an exemplary life." But, he noted, she had also admitted signing falsified tax returns for three years in a row, creating a backdated promissory note in an attempt to make income look like a non-taxable loan and lying under oath in two separate investigatory hearings.

The Cooks' case stretches back before 2003, Zilly noted.

"It was only because of the defendants' foot-dragging, concealment, obstruction that this investigation lasted as long as it did," Zilly said.

A federal jury convicted Wade Cook on Feb. 20 on seven counts of tax fraud, while Laura went free because jurors couldn't agree on verdicts in her case.

The jury found Wade Cook guilty of evading federal income tax from 1998 through 2000 on royalty payments of $9.5 million, filing falsified tax returns in those years and obstructing federal investigations into his actions.

As part of the tax fraud, the Cooks created a fictitious limited partnership purportedly for the benefit of the Mormon church, of which they are members. But no funds ever flowed to the church.

At its peak, Tukwila-based Wade Cook Financial Corp. employed 550 people and brought in annual revenue of $118 million from seminars, books and tapes on investment and tax strategies.

The Cooks spent $487,000 to maintain their estate, $360,000 to buy 10 cars, $200,000 to buy at least nine horses and $217,000 as a donation to The Church of Jesus Christ of Latter-day Saints, according to the prosecution.

They live on a horse ranch, which they said they have put up for sale, and once had a net worth of $200 million.

"There is nothing wrong with buying property or jewelry or cars," Zilly said during the sentencing hearing. "But most people pay taxes."

The prosecution said that since formal proceedings began against the Cooks in December 2005, the couple have been at liberty, and Wade Cook has continued to do business over the Internet, selling advice on investment strategies -- and tax write-offs.

© 1998-2007 Seattle Post-Intelligencer

-- posted by hairie13

» rasputin - Wade & Laura Sentenced

In response to Wade & Laura Sentenced posted by hairie13:

Perhaps it's a character flaw on my part but it warms my heart when bad things happen to bad people.

"During the hearing, Wade Cook was animated, grinning at his family and occasionally laughing and shaking his head in apparent dismay as Assistant U.S. Attorney Robert Westinghouse argued before the judge."

What a jerk! Guess he ain't laughing too much now, huh? People usually serve the majority of federal sentences. None of this stuff about doing half the time. Buh-bye, Wade.

-- posted by rasputin

» hairie13 - Wade Gets 88 Month Sentence: Edit

Date: August 3, 2007

Suite 101: EXCLUSIVE REPORT
By Hairie13

Thursday, August 2, 2007, in U.S. Federal Court in Seattle, Wade and Laura Cook, were sentenced to 88 months and 18 months respectively.

Before the trial began, Wade was able to give Laura a few smiles and chuckles. The small public seating area of the courtroom was heavily filled with the Cook's family members and friends.

Before sentencing, Wade Cook's attorney, Angelo Calfo, who specializes in white-collar crime, put the best spin he could on the charges against Wade Cook, arguing that Wade Cook, the person, was not the same enity as the business or tax shelters he was operating. Thus, should not be held personally libel for any unpaid taxes or wrongdoing. It was an issue of personal versus business debt. Judge Thomas Zilly, interrupted and said, "well, somone made $ 9,500,000 in income and didn't pay any taxes on it." The judge also mentioned that when Laura Cook plead guity in a plea agreement, she admitted they knowingly filed false tax returns for the years 1998, 1999 and 2000.

Zilly said the Cooks owe over $3,700,000 in back taxes. Calfo argued that those figures are based on being in the 39% tax bracket and the Cooks are in the 28% bracket. The judge said the tax code is clear. Income over $ 278,000 puts you in the 39% tax bracket. Calfo stated that according to his figures, the most the Cooks owe is $ 13,000. The judge argued that the Cook's complicated limited partnerships were used as a tax-free bank account for the Cooks.

Wade Cook was seen taking constant notes of the proceedings on a large, yellow legal pad during his and Laura's sentencing. The Judge then asked if Wade Cook had anything to say for himself. His attorney said that he advised his client not to speak before the court.

Federal Prosecuting Attorney, Bob Westinghouse, argued that Wade Cook is as defiant today as the day he was charged. He believes he's not guilty and has told people around him he's not guitly. Westinghouse said, "Wade Cook is prepared to blame everyone else other than himself. He refuses to accept responsibility for the fraud he committed". Wade Cook is seen shaking his head sideways in disbelief, while Westinghouse is making his accusations.

Westinghouse further argues, the Cooks have filed no income taxes since 2000 and have used the Mormon Church as part of their sophisticated attempt at tax evasion. Westinghouse further adds, "He (Cook) shows no contriteness for what he's done wrong". He's still promoting his tax shelters and wealth creating advice on his website.

Before passing sentence on Wade Cook, Judge Zilly, said on one hand, Wade Cook portrays himself as an expert on Asset Protection and Stock Trading. He's a family man and involved in his church. But there's a dark side to Mr. Cook; In 1990 he was convicted of selling unregistered securities. From 1993 to 1996, he filed no Income Taxes, but later settled with the IRS. Zilly said, "apparently you didn't get the message", because within a year, he created his "Never Ending Wealth" and Charitable Trust.

Wade stood at the podium with his attorney during his sentencing. The Judge then sentenced him to 88 month (7 years, 4 months) in prison. The judge gave him five to six weeks to get his affairs in order before surrendering himself to Federal Authorities. Wade had no expression on his face when the sentence was first read. He walked away with a "fed up" look on his face. Laura shed a few tears as did his daughters during Wade's sentencing. It was at this point, the sentencing hearing took on a sad, depressing tone and started to feel more like a funeral service for the Cooks than a court trial.

Laura Cook's attorney, described this day as the worst day in Laura Cook's life. He described her as a good wife and mother who home schooled her chilren. He asked the Judge to consider what sending her to jail would do to her family. Her attorney recommended no jail time for her.

Prosecuting Attorney, Bob Westinghouse, argued that Laura Cook created a fake, backdated promissory note on her computer, in an attempt to make it appear the money taken out of the trust funds were loans, when in fact, it was all an attempt to decieve the government.

Before passing sentence, Zilly mentioned that Laura Cook gave false testimony under oath and gave him (Judge Zilly) false testimony to use on her behalf in her trial.

Zilly sentenced Laura Cook to 18 Months in prison. Laura didn't shed a tear, but Wade Cook began crying. Having Laura sentenced to prison, finally broke Wade's defiant personality for a moment. As Laura walked back from the podium, she walked by the chair Wade was sitting in. Wade, still seated, hugged Laura, with his head in her chest.

After Laura's sentencing, Wade was sitting by himself on a court bench in tears, being comforted by what appeared to be one his daughters. For that moment, he truly looked like a broken man.

-- posted by hairie13

» hairie13 - Prison Sentences for Cooks

Sun, 5 Aug 2007

Prison sentences for financial guru Wade Cook, wife

By David Bowermaster
Seattle Times staff reporter

Wade Cook sentenced to more than 7 years.
Wade Cook made millions of dollars in the 1990s selling tax tips and
investment strategies to individual investors.

Cook's financial schemes produced far more negative returns Thursday
when a federal judge sentenced him to seven years and four months in
prison for repeatedly defrauding the IRS.

U.S. District Judge Thomas Zilly also ordered Cook, 57, to pay $3.75
million in back taxes on roughly $9.5 million of underreported income
generated by sales of Cook's books, tapes and seminars.

Zilly sentenced Cook's wife, Laura, 54, to 1-½ years in prison. She is
jointly responsible for paying the back taxes.
The hefty prison terms are the culmination of a lengthy and complex
inquiry that began with an IRS audit in 2003.
The U.S. Attorney's Office in Seattle formally charged the Fall City
couple in December 2005.

In February, after a lengthy trial, a federal jury found Wade Cook
guilty of three counts of filing false income-tax returns, for the years
1998, 1999 and 2000; three counts of income-tax evasion; and one count
of obstructing the IRS.
The jury deadlocked on all charges against Laura Cook, but she pleaded
guilty in April to one count of obstruction rather than endure a second
trial.
Zilly said Thursday that many of Wade Cook's supporters had written to
describe his good works on behalf of his family, his church and the
community.
"He is in many ways an upstanding citizen," Zilly said. "But there is
another rather dark side of Mr. Cook that has to be considered."

In 1990, Zilly noted, Cook was indicted on 19 charges of investment
fraud in Arizona and eventually paid more than $500,000 in fines and
restitution. In 1997, the IRS found Cook owed $4 million on more than $10 million in
underreported income; and in 2000, the Federal Trade Commission
consolidated actions against Cook in 14 states for deceiving investors
and imposed $2.7 million in judgments against him.

"You would think someone of Mr. Cook's expertise would get the message,"
Zilly said. Instead, Zilly said, the Cooks tried to evade income taxes in the late
1990s by directing $9.5 million of royalties from Cook's investment
products into a "charitable remainder trust" so as not to report it as
income. "No taxes were ever paid on those royalties," Zilly said Thursday. "All
of this money was transferred from entity to entity for the benefit of
the Cooks."

Angelo Calfo, Cook's attorney, said he will appeal Wade Cook's
conviction. "This case isn't over," Calfo said. "I think there's a real
question about whether those verdicts [against Mr. Cook] are going to
stand."

Zilly also had harsh words for Laura Cook, who he said lied to
government investigators on at least two occasions, then attempted to
have false testimony introduced as evidence at trial."That's very troubling that you participated in the fraud, that you lied about it to the government, and then you tried to use it at trial knowing it was a lie," Zilly said, explaining why he imposed a sentence
three months longer than the 15 months the government recommended. "I
believe that is absolutely necessary under all the circumstances," Zilly
said.

The Cooks will be free on bond until they start their prison terms in
five to six weeks.

-- posted by hairie13