Covenant Keepers Enterprises, LLC
J. C. Chisum, Consultant

5804 W. Vista Ave. #347 - Glendale, Arizona 85301
 

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COVENANT KEEPERS NEWSLETTER
Volume 6 Issue 5 April/May 1999

Attention, Attention:
We now have a "Domain name" for our Web site:
http://www.covenantkeepers.com

We also have new Domain Email adresses too !!!
info@covenantkeepers.com   

JC@covenantkeepers.com   

webmaster@covenantkeepers.com

Wow is the Railroad going to be on time???

Today I am in Cleveland for tax court calendar call.
And the "INDEPENDENT COURT’S JUDGE" was a real piece of work.  There is no doubt the judge is entirely independent of justice, law and logic.   Now we are figuring out how to do all the things we chose not to do in the earlier part of the case.
The expert witness was barred by the judge in his prejudice stating he did not need help with the law and that the brief was the proper place to bring in the law.   So the only thing left is me testifying about the trusts and trying to get an affidavit accepted instead of the actual originals of the trust documents.
I sure hope we soon find out how to get me off this railroad.  Our guy has the challenge of sacrificing the trust and the years of preserving and protecting privacy and assets or just get the railroad to keep on running.  Once again the changes that faces us is advocating truth in the face of lies and prejudice.
This has been a very different experience than we have had before; or in the other current cases in Arizona.

Last week we had seven oral arguments between myself and John plus two by our other family members.  I felt very good and look forward to having the truth brought out.  In the Arizona cases we are and always have been the trustee.  In the Ohio case we are a successor trustee after the date of the tax deficiency notice and commencement of the case.

Let me give you the essence of the oral arguments; all solid winners in law.  I believe we will see good results in all seven cases.  The Government attorney had filed motions to dismiss our petitions in the tax court claiming we were not the proper party to argue on behalf of the trust.  In their motion they said state law governs and that the trustee was the proper party to argue for the trust.

The Judge was in  an especially bad mood that day; I describe her as a hormone flat line with a migraine.  She was cruel and aggressive with everyone in the calendar call.  She was just as pushy and nasty to the District Council as to the people.  Her prejudice was obvious in the rulings she made and she had no mercy or conscience even on an 80 year old handicapped man whose wife had just died.  We knew we were in for a treat on the wheel of justice.  One of our friends commented about the Kangaroo Court; a few days later we were at the Outback Steak house admiring the boomerangs.  The boomerang struck district council when it was our turn.

District Council had to go first as the moving party.  Their whole thing has been getting trust documents; without much success I might add.  He had nothing to say until the fifth of seven oral arguments other than he was not sure we were the proper party because we had not revealed the governing instrument.  But he had been nice enough in his motion and oral argument to stipulate that state law was controlling.  We seized the opportunity to make a well structured state law argument.

Many or most states reserve exclusive jurisdiction in state court for determining the validity of the trust.  Arizona, Nevada, Delaware are among the exclusive jurisdiction states.  They all give us the strong presumption of correctness; he who claims to be trustee is trustee until proven otherwise.  He who exerts the trust is presumed to have a valid trust until proven otherwise.  All these states are also non disclosure or very limited disclosure states; so we had nothing to prove; district council was on the spot.  We did not let them off PERIOD.

The structure comes down to contract, and the unalienable right to obligations of contract.  No state shall pass any law impairing the obligations of contract is the excerpt of Article 1 in the Constitution for the united States of America; yes it is the same in the US constitution.  Almost all states guarantee the sanctity of contract shall remain inviolate.

We presented the argument that the state law forbade the Tax Court Judge from trespassing on the exclusive jurisdiction in Superior Court of the State of Arizona; that the government had a perfectly good remedy in the state court if they thought we were not the real party; that at minimum the motion was premature and the issues could be resolved comfortably in the discovery process.

The best the judge behaved all day was when John and I were Talking; she acted awake, alert, courteous, and even took notes.  Under advisement was what we hoped for and expected.  We are just too real to be ignored.  Seven cases under advisement is good.

Two of our people had oral arguments on individual cases and they did well also.

Credit where credit is due to John our paralegal; he coached me and our friends.  He made three of the oral arguments and I made four.

Then the sadness came; two other trustees were in for oral arguments on the same type of motion.  Their only argument was that they must be the trustees because the IRS has been writing letters to them as trustee for five years.  Sad, sad, sad….  These guys were so bad they could not even repeat what we had said seven times in a half hour.  However there is hope there was a feeble statement about the court lacking jurisdiction over a pure trust.

Let me follow the lead of another columnist with a far greater audience in talk radio.  I prefer to look at and build on the successes rather than cry over the failures.  I regard it as a marvelous success to be heard shouting the truth.   I looked at that day a lot like Christ with the Pharisees or the Sanhedrin; opportunity, opportunity times seven.  And I believe all are solid winners.  MY BOOMERANG DOES COME BACK FOR THE NEXT KANGAROO COURT OPPORTUNITY.

Let me set up Ohio a little.  I promise to embellish some details and no doubt will forget others.  Transcripts are ordered and copies can be obtained for a fee.
This case has been seven years in the making and two plus since the petition; we have been to the supreme court over the negligence of appeals.
Lots of motions have come and gone.  And discovery has been backed up by FOIA, every time the government refused discovery the petitioner went around it.

GOOD WORK; GOOD STRATEGY; REAL PREPARATION:
Council for the Petitioner was unveiled at calendar call; the government and judge thought he would be so unprepared this would be easy; and they had an easy time of the motions at calendar call.  Council did a good job at calendar call with no preparation for the attitude.  And we really sand bagged them at trial (thanks to John).  Maybe me a little.

Last week at calendar call our friend filed a motion to recuse on the judge.  We were surprised a little when he decided he could answer the motion himself and stated he could act fairly and without prejudice.  Little did we know how valuable that declaration would become.  {note there is no tax court rule for recusal}  In telephone conference and earlier motions he had been aggressively prejudiced in the government favor and had excluded the expert witness before handling the recusal.  The last act that seemed prejudiced at the time but wound up okay was the motion in leminee he refused for our guy and granted to the government.

After calendar call our friend "DOC" was under judge’s orders to stipulate to documents furnished by the IRS.  It did not even matter that there were a lot that could not be read.  This too turned out to be a good thing because they were required to accept petitioner’s stipulated documents also.   The judge reduced stipulation essentially to this is paper and it is what it is and can only prove what it says not some other idea about it.  And it really helped my testimony.  Even the assistant council agreed the documents did not prove what lead council for IRS claimed.  It is what it is and It says what it says.

We were home a few days and went back on Sunday.  Monday was preparation day and
Tuesday was trial.  We had to have a special chauffeur because Doc and Council were in District council office for a stipulation meeting Sunday Night at Seven.  I love it when a plan comes together and bureaucrats feel overloaded.

 Monday was a good day with script writing, sorting exhibits, and strategy planning.  I did a lot of lecturing about a winning attitude.   I had thrown a fit about losing attitudes the week before during review of stipulations.   I see no reason to plan to loose in the Tax Court just so we can spend enough money and time for appeals court.   I even had to tell council three times this was a winner because I am real.  He had lost his own case in 1995 to the same agent over the same form of trusts; but a different trustee..  So he had good and ample reason to doubt yet I was shouting "stand back non believers" the lightning and rain are here.  John was a master at building council up to succeed and to set all the issues.

The Government was properly forced to go first because of their fraud allegations and the burden of proof tied to it.  The witnesses proved Doc’s case over and over again.  The lead agent admitted on the stand under oath that he had never looked up the procedures or definitions of fraud or sham trust.  That dog won’t hunt is how ms. E puts it.   IT was altogether a good day for the good guys.  Witnesses all testified to doing business with the trust and paying the trust.  With fraud fading fast there was a lack of four of the five years to play with.  And no money unaccounted for in the fifth year.  I love it when the wheels fall off the federal railroad.  But to get an agent testifying under oath that he used no law and no procedure was wonderful; this is the stuff congress eats for lunch.  He decided and just made it up; hallelujah!

District council was in trouble with the judge from beginning to end; he hates incompetence too.  At calendar call he was sure it was going to be tweetle dum and tweetle dee.  There was enough sandbagging to hold back the Mississippi by doc and council.  John was acting as law clerk to help with exhibits and questions and did a wonderful job.  What the judge got was a well prepared well organized petitioner and an incompetent case by the government.  He did cut off cross examination on the agent presumably to stop the bleeding and embarrassment; but then allowed a 15 minute profer of the testimony and evidence to be read into the record sign seal deliver.  The judge stated I see where this is going I have enough on this subject and it is clear in the papers.
When he overruled all the objections to the documents he stabbed the IRS through the heart.  He said I will read it and it is what it is and can not prove anything else.  From the cross examination he asked doc to put in exhibits of the manual pages the agent had never read but Petitioner had in the court room. So the next day we delivered additional exhibits to the clerk containing all those manual provisions.

Petitioner documents included manuals, regulations, law enforcement guides, trust tax returns, and BMF cards proving the trust returns were filed properly and timely.  Agent did not know what the 494 code on the IMF means (return filed) or the tc150 on the Bmf cards from Atlanta Service center.  The IRS had claimed the trusts never filed but their certifications of the record were only a partial search of the Covington Kentucky record.
It is what it is was the judge’s frequent statement against the IRS and for doc.

COMIC RELIEF:
Let me paint you a picture of this District Council Female attorney.   At calendar call she wore a gray pinstriped dress that looked like she had been drug out from under the park bench and propped up as council.  Her hair is very coarse for an Anglo? And looks about like some of these guys you see with really bad toupees so apart of it sticks out like a shelf above one ear.  At trial she was in her hot RED DRESS fit for the devil himself; at least it was clean and she had a poorly matched scarf to hold the picture together.

Back to business; by the time it was my turn to testify Doc and co. had the idea this thing was a better case for the good guys than they had dared believe.   I was certain of victory for our cause was just and I had been the pep squad for the whole time.

I walked in with a four inch stack of papers; and my BIBLE.  When the baliff administered the oath it was so help you God and she noted my hand was on the Bible.

My testimony sealed the fate of the sham trust and fraud allegations.   It was dead already but we dismembered and burned the pieces.  I knew what TC 150 and 494 meant.  I testified about four minutes on my special education in the field of trusts; no objection and no impeachment from DC.  When we go to details of the trusts I would look at my stack of papers to be sure I did not get mixed up.

 Do you know what the 500 pound canary said?  Here kitty kitty kitty!!!

I sucked her into objecting to me looking at the papers so Doc's attorney questioned me about the Subpoena duces tecum and we admitted all the pertinent minutes into evidence.  The judge grabbed his set and read every page as I testified.   After DC had objected twice the judge asked me to see how I could do without the papers.  I made a real ritual of laying down the papers, stacking the bible on top and crowned with my glasses.  In response to the next question I was blessed with the words to say and expounded great details of the trust and their history and authority. And my knowledge and control for probably three or four minutes on each question.

DC was really going to stare me down and act tough but she has one eye that wanders; while she was trying to stare me down that eye was inspecting her nose.   It just helps to comprehend the shame of our enemy in this opportunity.

GG atty. asked me if I was familiar with the government’s stipulations; My answer was that I had reviewed them after calendar call.   When he asked me about the trust returns I answered that they seemed to be the copies I had furnished out of my records in assisting with the preparation for trial.  I testified the Business Master File cards from Atlanta were from my records I had allowed him to have in preparation for trial.  Why did I give some things and not others?  All the records I furnished voluntarily were IRS records already in possession and control of the Commissioner.  The others were private and only available in limited supply under the duces tecum.

I did offer to show the Judge the rest of the trust documents in Cameron and furnish notarized affidavits of the pertinent facts about the trusts.  He did not feel it necessary and was not needed for him to understand the facts.  We will give him the affidavits in assisting him with the law in briefing.

The most fun anyone had all day was when the DC tried to turn me around as some kind of nut (never mind the fact that I am certifiable) .  Her few questions were futile and went directly against the documents already admitted into the record on direct testimony. She tried to gert something out of the fact that the returns in my files were not signed by me or not signed at all.  NO SALE; that dog don’t hunt.   Who keeps signed copies in file; that one has to go to the IRS.  She led up to the signature on the 88 returns then made her big play.

Are you familiar with ___ ?  Yes ma’am.  Well do you know him well enough to know he got in all kinds of trouble over Nassau Life Trusts?   I am familiar enough to know that his trouble has nothing to do with Nassau.   {point of fact his trouble is a corporation not a trust at all}..

You testified earlier that you are familiar with Nassau life?  Yes ma’am   Well are you familiar enough to know Nassau got in all kinds of trouble over trusts?  I am familiar enough to know the president got in all kinds of trouble over an oil swindle and a gold swindle but it had nothing to do with trusts.    SHE HAD NO FURTHER QUESTIONS.

We left the courtroom, were standing on the front steps of the courthouse when GG atty. recognized what had happened.  He commented that the judge had really been fair and not kicked him around as he had expected.  My reply was; you called him in his error and prejudice and he repented to act justly.

Y 2 K fears are alive and well in the Cleveland Federal Building.   33 stories of steel and glass behind US marshals and metal detectors.  In preparation for the power outages the building has a new generator to support computer operations; there is a plan to replace all the non compliant computer hardware; never mind the fact it will take 4-5 years to transfer the systems and data.  The computer guy may have to carry each one independently to the basement for power but there is a compliance plan; isn’t government wonderful.
THE HALLMARK OF THE PLAN IS TWO 2500 GALLON DIESEL FUEL TANKS MOUNTED ON THE ROOF AND FILLED FROM A HELECOPTER.  The inside joke among court staff, IRS, and Marshals is about painting bulls-eyes on the tanks.

I LOVE IT WHEN A PLAN COMES TOGETHER now the bottom line on Y2K from the JC viewpoint.  As I see it the worst that is forecast is that all the illegal and unconstitutional activities of government will cease.  WE may be forced to look to GOD when our love of money takes a hit in the heart.  SO BE IT !!

VICTORY IS CERTAIN FOR OUR CAUSE IS JUST TRUTH IS EVER VICTORIOUS OVER LIES ... especially now.

MAY 22 SEMINAR WILL BE THE BEST YET;;; BE THERE OR BE SQUARE::::
THE FIRST 50 GET A SEAT and lunch.  Reserve by the 18 th.
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