May 19, 1997 Bill LaFortune District Attorney 406 Tulsa County Courthouse 500 S. Denver Ave. Tulsa 74103/tdc OKLAHOMA STATE Re: Criminal Complaints ENCLOSURES Dear Mr. LaFortune: Enclosed your will find an affidavit of criminal complaint to be filed with your office against several people who serve in the Federal system, an inspector for the Internal Revenue Service, and several "John & Jane Doe" defendants. Presently I'm not concerned about the John & Jane Doe defendants, but would like for you to begin a sealed investigation, notify named defendants that complaints have been filed, and secure information requested in the suggested subpoenas duces tecum. If we can work together to that extend for the present, the larger picture will take shape as we move into the case. Of particular significance, one of the enclosures you will find includes a copy of an agreement effected between the Oklahoma Tax Commission and the Commissioner of Internal Revenue in 1982-83, with my letter to the chairman of the Oklahoma Tax Commission, Commissioner Anderson. Probably the letter to Commissioner Anderson will provide you the best grounding so far as understanding appropriate application of taxing authority, administration, etc. I composed this letter of complaint a week or so ago, then stumbled across "qualified state income tax" regulations that turned on the light so far as seeing how the whole diabolical scheme works. Early Friday morning, May 16, my wife and I drove to the Capitol where we secured a copy of the administrative agreement from the Oklahoma Tax Commission. In addition to individual complaints being filed with your office, I am filing a complaint against the Internal Revenue Service, officers of the various Article IV United States District Courts, etc., with the Oklahoma Attorney General, W. A. Drew Edmondson, for more general prosecution under the Oklahoma Corrupt Organization Act. I will also file complaints via Janet Reno, the United States Attorney General, under the Anti- Terrorist Act, with the demand for a special prosecutor. I am fully aware of the politics involved, so the letter to Commissioner Anderson and the OTC-Commissioner of Internal Revenue agreement will be generally distributed to the Oklahoma Legislature with an appropriate cover letter. There will be a state-by-state initiative following Oklahoma's lead as people in other states secure copies of agreements executed in their respective states and unravel state law, so Oklahoma isn't alone, nor will your efforts be in isolation. Dan Meador's Letter to County District Attorney: Page 1 of 7 Since we haven't met, and I have no idea what your personal principles and ideology might be, I assure you that I understand your situation so far as the office of district attorney is concerned. The statutory office of district attorney is pivotal so far as operation of a de facto scheme known as "Cooperative Federalism" -- the office is construed as an instrumentality of the corporate State operating as a Federal instrumentality. Huge chunks of your funding come through Federal grants and various incentive programs. Up through the 1930's, what today is known as Cooperative Federalism, sometimes simply Federalism, was known as Corporatism. One of the contributing schools of thought behind the scheme was labeled Fabian Communism, which was greatly influential in the Franklin Roosevelt New Deal takeover that set about reorganizing State and Federal government in such a fashion as to effectively over-throw State sovereignty, and more importantly, sovereignty of the American people. Rather than functioning as 50 semi-independent republics subject only to Congress' constitutionally delegated authority, the several States accepted a Federal "umbrella" which has the effect of making the nation more as a seamless garment. The whole business was choreographed years in advance -- prior to being inaugurated, Roosevelt met with governors of the several States and secured cooperation pledges. Special sessions of State legislatures in summer 1933 (Oklahoma, from late May well into July 1933) laid important planks for Federal takeover. Then in 1935, representatives of Federal, State, county and municipal governments convened in Denver, signing the compact of intergovernmental dependency. You will find an abstract view of this history through The Book of the States, which appears to have published first in 1935. It is published in even years by The Council of State Governments, headquartered in Lexington, Kentucky -- my wife bought the 1990-91 edition for a quarter at the annual Ponca City Library old book sale a year or so ago. If memory serves, the OSU library probably has the whole set, as most federal depository libraries will have. The motive, of course, is money. Or more important than money, as such, consolidation of resources and political power. You deal with the ensuing problems every day. Since approximately 1973, consolidation of assets has undermined middle and upper middle income classes, taking us from 55% in those classes at about the time of the first Arab Oil Embargo, to about 40% today, while low income and poor classes went from 35% in the early seventies to over 50% by 1990. Under 14% of the population is postured to prosper in this environment, but the real windfall goes to a small group of under 1% of the population -- the wealthiest 1% had about 22% of total national assets in 1972, approximately 38% in 1990. In the decade of the eighties, America's population of hyper-poor, living at half or less of the official Federal poverty level, more than doubled. Dan Meador's Letter to County District Attorney: Page 2 of 7 I'm not dreaming those figures up. They come from authorities such as the Census Bureau, the Southwestern Bell econometrics model, A. Gary Shilling, ranked the top economic forecaster through the 1970's and 1980's, etc. And as the Grace Commission report forecast (Aug. 1980), there is no end in sight for compounding private and government debt; the mathematically impossible Cooperative Federalism scheme must, absolutely must, collapse in what is certain to be an epochal great depression. Since 1982, Government has been the only consistent growth industry in Oklahoma and other interior, predominantly natural resource states -- rural poverty is an atrocity, and the urban ghetto, in all metropolitan centers, spreads like cancer. In the meantime, the mathematically impossible Cooperative Federalism formula, premised on ever-increasing, interest-bearing debt, has undermined national as well as state sovereignty and solvency. Oklahoma now ranks about 47th on the per-capita income list, and I don't have to look at current crime statistics, illegitimate pregnancies, the school dropout rate, et al., to know they're rampant. You see the effects and know the figures better than I do, so I'm probably not telling you anything you don't already know. As European Communism and Socialism, Cooperative Federalism is somewhat like a star headed for nova -- as it reaches critical mass, which will probably be brought about by some glitch such as another derivatives whip-lash or a couple of the Latin American nations finally repudiating sovereign debt, the magnitude of the meltdown should dwarf the Crash of 1929 -- the stage is set for anarchy or absolute tyranny. I don't care for the prospect of either. There must be a way to restore constitutional government, and correct the insane economic scheme, peacefully. We have the same motive American Founders did in 1787 -- they convened the Constitutional Convention because of pending economic disaster. But the effort will require cooperation from people who presently serve in public office coupled with private sector initiative. You cannot do it alone; we cannot do it alone without open rebellion. There must be leadership both inside and outside of government if the objective of restoring constitutional rule is to be achieved. The Internal Revenue Service, loved by nearly everyone, is the Cooperative Federalism Achilles heel. IRS is an agency of the Department of the Treasury, Puerto Rico, not the United States Department of the Treasury -- read the section in the enclosed brief then look at 31 U.S.C. §§ 301- 310 to see that IRS and BATF are not agencies of the United States Department of the Treasury. Verify that the Internal Revenue Code vests authority in the Treasury Department, not the Department of the Treasury (26 U.S.C. §§ 7701(a)(12)(A) & 7805(a)). IRS operates on contract to provide systems development and maintenance and record-keeping services for United States Government, either through the Treasury Department, the United States Department of the Treasury, or the Federal Dan Meador's Letter to County District Attorney: Page 3 of 7 Reserve as fiscal agent for the United States. That's one of the matters to be resolved via the enclosed application for subpoena duces tecum. I presently have a Freedom of Information Act request in to secure a copy of the master contract, or contracts, but am presently being stonewalled. Catching people at the Oklahoma Tax Commission flat-footed to secure a copy of the OTC- Commissioner of Internal Revenue Service agreement amounted to a surprise coup de grace. Contracts with State tax commissions are more important than whatever contract IRS has with the Treasury Department. Where subtitle F of the Internal Revenue Code (administrative and judicial) is not effective until Title 26 of the United States Code is enacted as positive law (see 26 U.S.C. §§7851(a)(6)(A) & 7806(b)), the several States have adopted Subtitle F of the Internal Revenue Code by contract -- see 26 CFR, Part 31.6361-1 and related regulations. It's a hoax -- the United States may exercise only powers delegated by the Constitution, and officers of the several States cannot accommodate a Federal power without first securing a Constitutional amendment (Tenth Amendment, New York v. United States, et al. (1992)). The lengthy brief outlining particulars is basically a re- statement of law and regulations at issue. If you care to have a copy, I have a 100-page brief that is somewhat more readable and provides a better historical accounting. The way the current tax system evolved is more bizarre than stories science fiction writers dream up. After the Spanish-American War, we set up provisional governments in the Philippines, Puerto Rico, etc., principally under Navy supervision. When the China Trade Act was enacted, governing trade in opium, cocaine, and citric wines, administration and enforcement of the Act were put is charge of provisional governments in the Philippines and Puerto Rico. Each established a Bureau of Internal Revenue -- the Secretary of the Treasury still administers the three trusts, Philippines Trust #1, Philippines Trust #2 (internal revenue) & Puerto Rico Trust #62 (Internal Revenue). You can find them listed with other trusts at 31 U.S.C. § 1321. In 1938, the China Trade Act was repealed, but the two BIR entities continued administering other treaty provisions relating to narcotics, distilled spirits, etc. In 1946, the Philippines became an independent commonwealth, leaving Puerto Rico as the surviving off-shore United States possession with a known Bureau of Internal Revenue. The second line was through prohibition, effected under the Eighteenth Amendment (1919). The Amendment gave State and Federal authorities concurrent jurisdiction for enforcement of State and Federal liquor laws. However, the Twenty-first Amendment (Dec. 1933) (1) permitted each State to determine its own liquor laws, and (2) terminated Federal jurisdiction so far as the several States are concerned. The United States v. Constantine decision (Dec. 1935) ended Federal administration and enforcement authority in the several States party to the Constitution. Dan Meador's Letter to County District Attorney: Page 4 of 7 The Constantine decision was issued against 1926 legislation. In summer 1935, Congress enacted the Federal Alcohol Administration Act, and replaced the previous Federal enforcement agency with the Federal Alcohol Administration. However, because of the Constantine decision, the Federal Alcohol Administration never got off the ground, then via Reorganization Plan #III of 1940, functions of the Federal Alcohol Administration Act were placed under the Bureau of Internal Revenue, and the Federal Alcohol Administration was abolished. Now the third line: Approximately simultaneous with alleged ratification of the Sixteenth Amendment (1913), Congress implemented the corporate income tax, drafted in 1909. However, about half a dozen adverse decisions from 1915 through 1920 did the tax serious injury, so via the Internal Revenue Act of Nov. 23, 1921, the original corporate income tax and most other legitimate excise taxes were repealed. What survived was the "normal tax", which issued against pay of officers and employees of the United States, including the President, Congress, Federal judges, et al. Judges kicked up about that, too, so the problem was finally solved in the 1930's by making appointments contingent to candidates signing contracts agreeing to pay income and other Federal taxes. When excise taxes and other taxes that would have been legitimate under Congress' Article I delegated authority were put back in place, they were under Congress' Article IV § 3.2 authority in the geographical United States, not under Article I delegated authority. Under Article IV § 3.2, Congress has the combined power of State and Federal government in United States territories and insular possessions. The Federal salary tax might have been implemented in 1918 -- I don't know precisely when it crept in. At any rate, it became known as the "income tax" by the time of the Public Salary Tax Act of 1939, which was codified in the Internal Revenue Code of 1939. The Internal Revenue Code of 1939 was revised via Reorganization Plan #26 of 1950 and Reorganization Plan #1 of 1952, implemented as the Internal Revenue Code of 1954 (Vol. 68A, Statutes at Large), as amended in 1986 and since. The most significant "reorganization" was to remove administration of Subtitle A & C taxing authority from Treasury Department revenue officers appointed in each Congressional district to alleged administration by IRS. The name Bureau of Internal Revenue was changed to Internal Revenue Service via T.D.O. § 150-29 (1953). The Bureau of Alcohol, Tobacco and Firearms was split from IRS via T.D.O. § 221 (1972). If you will look at 27 CFR, Part 1, you will find that BATF still administers the Federal Alcohol Administration Act, moved off-shore to Puerto Rico via Reorganization Plan #III of 1940, and if you will consult definitions at 27 CFR, Part 250.11, you will see the solid link between IRS, BATF, and the Department of the Treasury, Puerto Rico. Dan Meador's Letter to County District Attorney: Page 5 of 7 Another interesting quirk: The original Commissioner of Internal Revenue was created by the Revenue Act of 1862. Abraham Lincoln and his group seem to have invented the "Federal kickback tax" - 3% of government-derived income (wages) over $600 per year. However, the unpopular tax was abandoned shortly after the Civil War, and the office of the Commissioner of Internal Revenue, created in the United States Treasury Department, was effectively abolished via the Revised Statutes of 1873. If you will consult 26 U.S.C. § 7802, you will find that the present "Commissioner of Internal Revenue" is in the Department of the Treasury, not the Treasury Department, and that the office is not in the United States Department of the Treasury (31 U.S.C. §§ 301-310). Consult 26 U.S.C. § 3401(c ) to confirm that the "employee" is an officer or employee of the United States and its political subdivisions, and officers of Government-controlled corporations, and § 3401(d) to confirm that the definition of "employer" is simply the employer of the employee previously defined. It's still the "normal tax" of 1921. Income and Social Security taxes have never applied to the general population. In fact, no taxing statute in the Internal Revenue Code reaches the Union of several States and the population at large. Congress moved almost totally under Article IV § 3.2 legislative jurisdiction in the geographical United States, which includes the District of Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, etc. -- see definitions at 26 CFR, Part 31.3121(e)-1. Interesting, isn't it? Far and away the best shell game in town. But it isn't a game. It's treason against the Constitution of the United States, the Constitution and sovereignty of the State of Oklahoma, and the sovereign people of this nation -- against my children and grandchildren and yours as well. Tyranny has no friends. You cannot scale the ladder high enough to assure your heirs safe harbor. These are quite literally times that try men's souls, but in the constitutional republic, if we had such a thing, tyranny never stands on one leg - there must be a perpetrator by intent, and a perpetrator by consent. We can deal with those who are blatantly and manifestly evil, it's benign evil that destroys nations and empires. Read Paul Tillach, Martin Buber and other post-war commentaries by German Protestant theologians; read transcripts of the Nuremberg Trials. Hitler and his Nazi hoards first subdued and destroyed the German people because supposedly good, moral people failed to answer the call. The end of it, because they yielded, was possibly the bloodiest war in history. One of the definitions of insanity is doing the same thing the same way time and again expecting a different result. If we capitulate to tyranny, permitting ourselves to be joined to it, we are destined for history repeat itself -- Oswald Spengler, in Decline of the West (1936), warned that 19 of 21 known historic empires were destroyed from within due to moral decay. Sixty years after Spengler's warning, tribulation stands at the door. I realize you can't jump into this mess by yourself. Your professional corpse would be buried somewhere on a forgotten hill in an unmarked grave. So there must be a plan of action -- cooperation to accomplish a common end. I'm prepared to provide support you need. Dan Meador's Letter to County District Attorney: Page 6 of 7 If you will secure documentation I seek via the application for subpoenas duces tecum, I will take it to public hearings in political forum under authority of Article II §§ 1 & 3 of the Oklahoma Constitution, and the First Amendment of the Constitution of the United States. We will seat a representative panel by congressional district to consider evidence and issue mandates to public servants. Lest you think we will fall down on our end, consider current public temperament: Every legitimate survey since 1990 has reflected a 60% discontent level -- people distrust politicians and political institutions down to and including local school boards. By fall 1995, the discontent level was at 73%, and by May 1996, at 80%. In November, only 49% of the registered voters bothered voting, and the sad part of that, only 35-40% of those eligible are even registered to vote. Few if any politicians elected in November represent as much as 15% of the eligible voters in their respective districts. In fact, just a month or so ago, a radio announcer said politicians have a reason to cheer -- confidence increased 7% in the first months of 1997. The bad news -- it's up to 22% from a low of 15%. Forgive duplication of the historical account between this letter and that to Commissioner Anderson. I constructed this letter last week, intending to get it in the mail before now, then received information from the Office of Management and Budget relating to OMB numbers for IRS forms and regulations, then on Thursday figured out that the contract between OTC and IRS had to exist -- Friday we secured a copy of the agreement and it has taken most of the weekend to reconstruct the tax fraud scheme with this new piece of evidence as a centerpiece. Thank you in advance for your assistance with this matter. Regards, /s/ Dan Meador Dan Meador Dan Meador's Letter to County District Attorney: Page 7 of 7 # # #
Return to Table of Contents