Culminating a quarter-century-long battle, the federal government is suing Newport Beach-based Monex for nearly $400 million in back taxes. The feds filed suit in Santa Ana on June 13. The complaint seeks unpaid taxes from 1980 through 1984, plus interest and penalties. The total: $378,237,162.42.
Monex, founded by Louis Carabini in 1967, is one of the nation’s biggest dealers in precious metals. It has long battled the Internal Revenue Service over government claims that it had invested in abusive tax shelters.
The current dispute began in August 1992 when the IRS told Monex International that it owed $172.4 million. Monex took the fight to U.S. Tax Court, settling there in February 1998.
Monex International no longer exists. It merged into another Carabini company, PCCE Inc., in 1995.
In court papers the government alleges that Monex created several new entities and transferred the old Monex’s employees and assets “to prevent the United States from reaching the assets and income of the Monex enterprise.” It says those entities have to pay the old Monex’s tax bill.
For an updated version of this story, click here.
Actually, I heard they changed their name from Monex International to Monex Deposit Company… Greg Walker, their in house counsel must be a genius.
The president of Monex, left mysteriously out of the country with no plans to return any time soon, the night before the article appeared. One can only wonder why he left… is it like the UBS exec’s on the run too…?
Hummmmmmm. I think we all can figure this out.
Does it seem like the IRS, which has almost no interest in the billions in taxes being evaded by major US manufacturers, has specifically targeted companies in the retail gold and bullion metals business? Is this part of the Fed’s efforts to drive the ‘barbarous relic’ underground? Anything to discredit gold and plant that little seed of doubt in the lumpinvestoriat’s mind…
I worked at the old Monex, from 1978 until 1983. I have a few random comments on this story.
Greg Walker is not a genius. He is merely a lawyer. He hit the jackpot when he went to work for Monex.
Lou Carabini is a “Libertarian” (mind the quotes — neither you nor I know exactly what that means…). He adheres to the doctrine that the US tax code is illegal, according to some weird interpretation of the succession of laws, over the decades, that have formed the present tax codes.
Now, in order to act out my duty as a citizen (and to avoid trouble — reinforcement is always both positive and negative), I have always paid taxes. Honestly and up front. I am a patriot. I am an ex-Marine who fought in Viet-nam, and I have sundry bullet holes to prove it. For me, personally, tax evasion under the cover of “the original intent of our founding fathers — the common mantra among tax evaders) is a convenient dodge used to cover up greed. If you refuse to contribute to the general wealth, claiming pseudo-patriotic loopholes, you are lying to yourself, your countrymen and countrywomen, and law enforcement officials.
Lou Carabini is a mediocre scumbag. Greg Walker is his hired mouthpiece. May they both rot in hell (if there is such a place).
If you choose to live in the United States, then you must either live under her laws, or attempt to change them through democratic process. There is no middle ground.
Those of us who used to work at Monex, what now seems ages ago, used to call it “scamex.” Apparently, Lou has finally gotten around to taking the joke seriously.
Do not do business with these fake-patriots. Not if you choose to pay your taxes, small dues for being allowed to live in the greatest country in the world.
Speaking of paying taxes, I read that Disney does not pay any taxes. If you willingly submit to the Federal Reserve, you have to pay. Did you know the Reserve is not federal, and not a reserve but foreign investors that control 100% of USA money?! And yes, I pay every cent of my taxes because I have a bank account, drive on public roads and voluntarily submit.
Learn the truth about Monex at: MonexFRAUD.com