Isle man arrested
in federal fraud
The case involves an alleged
scheme to evade tax laws
Federal agents have arrested a Honolulu man who offered clients various schemes for hiding income and assets from the Internal Revenue Service.
John David Van Hove, also known as "Johnny Liberty," was arrested Monday on charges in a federal grand jury indictment last month for "corruptly endeavoring to obstruct and impede the due administration of the tax laws, willful failure to file individual income tax returns and wire fraud."
The indictment alleges that Van Hove operated a financial planning and investment advice business in Hawaii.
The schemes included:
» Use of "common law trusts" to conceal ownership and control assets and income.
» Use of offshore trusts with related bank accounts in which assets would be repatriated through the use of a debit/credit card.
» International business corporation entities that had no independent business purpose and did not represent ongoing businesses, but in whose names bank accounts were opened in the Bahamas and elsewhere for the purpose of concealing ownership and control of assets and income.
Van Hove allegedly earned $281,890 from his work with an organization called Global Prosperity, but he failed to file income tax returns as required by law.
He also allegedly solicited and obtained about $700,000 from clients using a series of misrepresentations and false promises, including offering rates of up to 25 percent per month.
Most of Van Hove's clients allegedly received no profits and lost their entire investments. It is not known how many people were affected.
If convicted, Van Hove faces multiple penalties including a maximum of 20 years in prison and a $250,000 fine for wire fraud.
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