Wesley Snipes lost millions in Ponzi scheme
Filed under: Tax
Last year, actor Wesley Snipes was sentenced to three years in federal prison after he was convicted of tax evasion. He's been allowed to remain free while he goes through the appeals process -- but that hasn't helped him avoid other financial problems.The New York Post reports that Snipes may have lost "millions" to an alleged Ponzi scheme run by Lincoln Fraser and Jared Brook. The pair went on trial in England at the end of last month on charges that their investment company Imperial Consolidated bilked investors out of nearly $400 million.
So to recap, here's how Wesley Snipes' financial strategy appears to have worked out: He evaded taxes, resulting in massive fines and a probable three-year stint in federal prison. Then he took the money that he was skimming and invested it in an alleged scheme where he ended up losing it anyway. That's like cheating on your wife and getting a deadly STD in the process.
Meanwhile, Snipes is set to return to the big screen with director Abel Ferrara in an action movie called Game of Death. The pair last worked together on the 1990 cult classic King of New York.
Reader Comments (Page 1 of 6)
10-12-2009 @ 6:31PM
jyc_herbert said...
I am not condoning Wesley's actions in withholding taxes, but I would like to note that he is not as bad as those who have callously absconded with other people's investments (including widows and old people).
Like a lot of us who have made humongous errors in our lifetime and hopefully learned from our mistakes, I am hoping that Wesley will take the opportunity to rise above the situation and turn it to his advantage, remember this one , "When life tosses you a lemon, make lemonade?"
Wesley you are still one of my favourite actors of your generation - so here is to better judgement and good luck in your future endeavours.
lol
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10-13-2009 @ 2:23PM
kaiktsh said...
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10-13-2009 @ 3:54PM
ed baggett said...
Birds of a feather.........
10-12-2009 @ 6:49PM
JT said...
You know, my mother always told me, if it sounds to good to be true, it is, and you can't get something for nothing.
I love his movies.... too bad we humans can be so dumb.
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10-12-2009 @ 8:04PM
BigDog said...
Hard to feel bad for someone who makes this kind of money. I don't think "dumb" is the proper word. I think its "greedy". That would be more accurate.
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10-12-2009 @ 10:59PM
Morn said...
No matter how much money one has it is really sad when someone loses it all. The government doesn't care who you are or how much you are worth...they go after you with a vengeance. No one is safe.
10-13-2009 @ 3:00PM
Lotte said...
Actually, Morn, while they do appear to really go after some people (probably people they can see are deliberately not paying), I can personally tell you that IF you are willing to be upfront AND work with them, they will help you out!
Thanks to my "ex", I ran into this situation. We were still married, he was overseas and I sent him signed forms so he could file our taxes (he had all of the financial things with him). He never filed and didn't tell me he didn't. Several years later when we were no longer together I found out the hard way what he'd neglected to do.
I went to the IRS, explained the situation and they went out of their way to help me arrange an easy and affordable way for me to pay (I paid the entire amount - the ex couldn't be trusted). I was even going to be late for one payment, phoned them the minute I realized that, and they were extremely co-operative! No late penalty or anything!
I do have to ask, HOW can people suddenly find themselves SO far into the hole? Even celebs should know enough to keep an eye on their so-called financial advisors, especially these days, when this stuff has been in the news so often for so many years!
10-14-2009 @ 12:22AM
erik said...
How is it greedy to want to keep what you earn. Lets not forget all the people that feed off of Snipes earnings, I bet he is lucky if he sees 40 cents on the dollar. Another thing, how can anyone be blamed for not wanting to give a dime to this out of control spending government we have? They don't produce anything, nor work and yet they spend all this money like drunken sailors. The tax system in this country has got to change. The fair tax is the best step to making the system fair and work. Snipes, good luck with your fight against the machine.....
10-14-2009 @ 7:57AM
BigDog said...
He's not. I dont think any single person in America wants to pay taxes. I know I don't. He is greedy " for trying to fraudulently obtain $11.4 million of tax refunds between 1999 and 2001. He was ALSO nabbed for willfully failing to file tax returns. " He knew he was commiting a crime, knew it could land him in jail, and did it for the sake of money. Maybe thats a hero to you. Its not to me.
10-12-2009 @ 8:18PM
jjsjjsva said...
Make him do 3 years of intense public service for free and take the money he makes from films to pay back the taxes owed and massive fines.
Throwing him into jail isn't going get back the money. The government needs the money more than it needs to support another dead beat jailbird for 3 years.
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10-12-2009 @ 9:02PM
BigDog said...
"Throwing him into jail isn't going get back the money. The government needs the money more than it needs to support another dead beat jailbird for 3 years."
Throwing murders in jail won't bring back loved ones either. Its to detur others from doing the same.
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10-13-2009 @ 5:42AM
Prosperous1 said...
Wow you insist on displaying your ignorance. Murders are sentenced to death based on punishment..they have taken something they cannot make restitution for. Deterrence (not detur) is irrelevant and not the basis of justice.
10-12-2009 @ 9:57PM
Maxim Efremov said...
To say that Wesley Snipes was convicted of tax evasion and not mention that he refused to pay federal taxes on the grounds that they violate constitution, or so was his belief and reason, is to portray this actor in most negative light. I hope that the writer simply doesn't know what he is talking about. Otherwise, this is slanderous. Shame.
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10-13-2009 @ 7:50PM
phil said...
Dear Max: I sincerely hope that you weren't implying that Mr. Snipes was caught up in another one of those "don't pay your tax, it's unconstitutional scams." It sure sounds that way. I have seen people who tried this, always encouraged by so called well meaning groups. They ALWAYS lose!
Is the income tax constitutionally illegal? Yes. It was never ratified by Congress. Does this matter to the courts? No. They are not about to set a precedent that would cause millions of people to withhold tax money due. This would bankrupt the country and cause the dissolution of The United States.
Mr. Snipes may well have stood up for what he thought was right. I applaud the effort. He has however, reaped the consequences. Let this be a lesson to those who wish to beat the system. The system has far more resources than you. It's their ball game. If you don't like it, take your bat and your glove and go live in Uganda.
10-14-2009 @ 10:28AM
VerbalKent said...
Actually WS didn't pay taxes because there is no law that states we should pay income taxes. Wages aren't income. You should go to youtube and google Aaron Russo and watch his movie. Very enlightening. He went to the IRS and ask the to show the law which states wages are income and what grounds the IRS had for collecting income tax and they were unable to do so.
10-12-2009 @ 11:44PM
sherri said...
Isn't he making ENOUGH money already, with the movies he's making?!
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10-12-2009 @ 10:19PM
stdslove said...
OMG! Even celebrity can get STDs.
No wonder why more and more hot girls join the largest STD dating site Positivefish.com.
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10-12-2009 @ 11:41PM
Prosperous1 said...
It is inexcusable ignorance to label someone as 'greedy' only because they have wealth. Look up the definition and you'll notice it says nothing about having it. It also assumes the false economic theory of "Zero-sum" meaning that if one has a lot it is because they unfairly benefitted because there is only so much to go around therefore for one to have much another must be deprived and have little. It is a false socialistic argument that actually fosters poverty and misery. It ignores prosperity due to productivity and economic growth. Instead of jealously labeling someone greedy because they have wealth, why dont you go out and try producing something useful for society and be grateful that you live in the good ole' USA where you can become wealthy yourself?
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10-13-2009 @ 12:00AM
Dan said...
If losing one's money is a case of life and death, then perhaps the author has his priorities seriously misconstrued. Cheating the government of taxes, which will be blatantly misspent anyway, is almost a civic duty; if not a patriotic act. However, mine are ALWAYS paid.
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10-13-2009 @ 12:18AM
Jeffrey said...
@Prosperous1: About your death sentence comment I actually beg to differ, since a few states (like Iowa where I live) don't use the death penalty, replacing it instead with an unavoidable live in the big house (read: living behind bars for the rest of your life, with no way out -- EVER!) Even the death penalty itself is in question due to constitutional issues regarding prohibitions of unnecessary cruelty and suffering in the justice system, no matter the executioner's methodology (and yes, this does include the modern system of lethal injections). We're talking basic grade-school politics here, folks.
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