[weishaupt1776]

0, 2005



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9:10 AM we started with a nearly full court room, with 38 supporters of Larkin, 9 IRS agents or court clerk and staff and 2 reporters present. First thing was the testimony of Witness Donald Pearlman the Special Agent of the IRS who investigated who in middle (September) of 2000 had Larken case, which was previously under civil investigation and then another agent was looking at, to see if there were any tax violations by Larken.



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He felt that a search warrant was needed due to the fact that key evidence might be destroyed, if not done so; as, items of income and expense and ,??? 2 search warrants were issued, for his home and Dr. Clayton in Texas.



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At Larken???s place many items were seized, such as: large number of financial do***ents, issues related to tax law and do***ents, e-mails, hard copy do***ents, audio and video recordings. The vast majorities of computer evidence were copied off of his computers, rather than physically taking them away.



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As a result, he contacted a number of banks and that of the payers of income to Larken, so that they could establish his income, by original do***ents. He requested checks and other do***ents from Chase Bank. One of the checks is an over $2300 check issued to the IRS which on the memo says ???abolish the IRS.???



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With the Raid, they found a letter from a U.S. Senator to another individual that states that the 861 argument is false. Another do***ent was from another U.S. Senator, to another individual that essentially states that, the 861 argument, is incorrect. Another do***ent was from a U.S. Senator of Larken, which has an answer of the Congressional Research Service, which states that 861 of the code does not exempt the income of U.S. Citizens.



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Another letter is from anther U.S. Senator that stated that the 861 argument is false. A constituent of Senator Tom Daschle, says the same thing. A letter from IRS to another individual states the proper application of the 861 do***ent and another example that notice was given to Larken about the error of his argument.



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Another letter was by Congress Porter Goss [now the head of the CIA, Ed.] stating that the 861 argument is false. Another one is from Carl Levin of Michigan to another one, stating the same. Another was from Senator Kate Hutchinson to Dr. Tom Clayton, stating that section 61 makes all income taxable.



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Another do***ent is a letter from Congressman Jeff Blame of Arizona to anther individual that contains a brochure called ???The truth about frivolous tax arguments???. This do***ents specifically states that section 861 of the code is a frivolous argument and is only to make sure that no one is double taxed in U.S. and a foreign country.



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Now the Government went over the E-mails that they got from his computer:



An E-mail between Dr. Clayton and Larken. * Larken in this e-mail states that he is ???obsessed??? with the IRS, since they take such a large amount of his taxes from him. In another e-mail he states that he started his battle after his living budget became very tight.



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In another e-mail of Larken to Dr. Clayton states that for many people it is hard to believe that their own government has become a bunch of extortionists??? fraud. In another e-mail between these 2, Larken states that ???nothing can give anyone the power to rule me,?????? In some e-mails Larken used profanities to describe the IRS or Government.



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In another e-mail he calls the IRS an extortionist organization and ??? the only check against the IRS is a million people with guns, standing up to the IRS??? next e-mail stated that he will not stop until the IRS is buried in the history books. In next e-mail Larken says: ???It is time for trial by fire ??? IRS agents??? I will use any dirty trick, scheme or lie that I could make up.???



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At the raid Larken said many things to him at the time of the raid. Larken said that he was able to pay off his home mortgage early by ???good budgeting and not getting robbed.??? To this agent, that meant not paying income taxes. **



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Larken said that he got letters from the IRS that his 861 argument is wrong and he did not feel that they are binding. He said that he would not change his mind if a jury or judge said that he was wrong. The judge did not allow the tape of this agent and Larken to be played to the jury



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Cross examination by Larken started at 10:15 AM




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Agent found nothing deceptive by Larken besides not reporting his income and admitted receipt of compensation for services. Larken interfered with the administration of the tax laws by operating his web sites. Larken called IRS agent criminals and providing guidance for people to not file income taxes.



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Larken had asked his web site followers to ask their Congressmen and Senators about the 861 issue and to send those responses to him.



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At 10:55 AM we took a break and resumed at 11:12 AM. IRS seized over 10,000 e-mails on the raid. Agent Pearlman reviewed hundreds of the e-mails. Various IRS agents for content reviewed over 1,000 of these e-mails.



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Larken had Agent Pearlman go over and/or read the other parts of these e-mails, to put the quotation from these e-mail in context by reading additional parts of these mails. Of course, Pearlman was evasive in his answers and would not easily answer the simple yes or no answers that Larken asked him.



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At 12 noon Special Agent Pearlman???s testimony is over. A former IRS agent told us Agent Pearlman was only testifying in a way they were trained to do and that he came across as though he learned his training good. * When it was to his advantage he expressed himself with good memory and completeness.* When it was to his disadvantage he would hedge and ask questions and be evasive. * It was annoying to hear his testimony.



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At 12:22 PM, the next witness, Maureen MacDormett, who is an IRS revenue agent took the stand. She examined some of the do***ents that were seized in the raid of Larken Rose???s home. She was a summary witness. A summary Witness???s job is to add up all the evidence that the government has produced (Pay stubs, 1099, checks, bank records, witness testimony) to add it all up and figure out how much income the person (in this case, Larken) made, in during the years in question.



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It is difficult to listen to this because it is all evidence that Larken has admitted to and this witness???s testimony is so repetitive of admitted evidence that just drags on and on unnecessarily. * An example is asking her for a definition of the medical transcription business when this was done with a prior witness, Art Thompson. Also asking for the methodology of arriving at the income was repeated. * This tends to make slow go even slower!



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At 2:15 PM we returned from lunch and Judge Baylson gave a discourse to the jury about the Bell case letting them know this case was not directly relevant to Larken???s willfulness to file case.



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Larken???s defense begins with his standby counsel Larry Becraft, questioning the first witness Larken Rose. * Starting with general background questions. More supporters of Larken have come since this morning. The number of his present supporters is now up to 56 people, with 9 IRS agents present and two reporters. The courtroom is almost full now.



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Why did he not file.* He had never seen the law before. * Starting sometime in 1997 he began looking at and researching the law and became convinced it was a mistake and would be wrong to sign and file a return.



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During the years through 96 they filed and paid income taxes.



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In 1997 he first began hearing different views about the income tax. * He looked into many and found out they were not valid.* How did he look into them?* On the internet he was able to look up the law and found the flaws in them. * In 1997 they were both working long hours and made about $40,000 and taking $10,000 of that for taxes.* This motivated him to look into this.



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In middle of 1997 he looked at the IRS Code and regulations and the 861 issue on Federal Government???s web site, after he read an article by Thurston Bell. After reading the current IRS codes and regulations, eventually he got interested in the roots of the law and its history. Larken felt that by understanding the seed, hopefully he would better understand the tree.



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Then he went to the actual law libraries (not online) so that he could find the old tax laws. He wanted to confirm or refute the accuracy of Thurston Bell???s Article. The indexes of the Code lead him to section 861 about the sources of income.



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