Webinar #1 From the Libray of Robert Tanner/Adon El and The Knights

Soveran, Diplomatic Mission

Jean: Okay, what we’re going to cover is, what’s going on in the courtroom. When they take
you into the courtroom, they’re probating your estate. That’s what that all-capital-letter name is.
It’s a legal estate. You’re going to have to forget all about this programming that you’ve had –
about the straw man, the homo sapius, the artificial entity, it’s a legal estate for the purposes of
taxation. They’re going into your estate and using your exclusion. They’re using your exclusion
because you’re not using it. Everybody’s filing 1040 tax returns – I’ll give you an example.
Everything is a tax bill – I don’t care what you’re in court for. I don’t care if it’s civil, criminal,
arbitration, legislative, executive – it’s all taxes. Everything is a tax bill. And the reason that
everything is a tax bill is because there’s no money. Okay, on the estate side, you have a
$3,500,000 exclusion, and this is set forth in publication 950. And on the gift side, you have a
$1,000,000 exclusion. That means – it’s called an exclusion, or a Unified Tax Credit. It refers to
it as both – on the gift side and on the estate side. The reason everything is classified a gift and
estate tax is because it’s under probate law.
2:45
Now, when you go into the courtroom, the judge is probating your estate. And, because you
haven’t identified yourself as either the executor of the all-capital-letter name, which is a legal
estate, the legal estate is intestate. And, what intestate means is, there’s no legal or beneficial
heir to the estate. So, it escheats – this is where the doctrine of escheats comes in. The doctrine
of escheats is the doctrine – if there’s no heir or beneficiary to a person’s estate, then it reverts
back to the state. That’s why every court – I don’t care if it’s a superior court, a circuit court, a
court of common pleas – they have an administrator. And, if you go into Title 26, section 2203,
it defines what an administrator and what an executor is. Here’s what it says, and I’m going to
paraphrase this, but you need to read this – it’s title 26, section 2203, and here’s what it says. It
says, if there is no administrator or executor – it starts out with a definition – if there’s no
administrator or executive appointed, then, it’s whoever has active or constructive custody of the
estate property. Now, when you go into the courtroom, the court has the actual and constructive
custody of your estate, and the judge is acting as the executor, because you haven’t identified
yourself as the beneficiary, so, as far as he’s concerned, it’s intestate. There’s no heir, there’s no
beneficiary, and there’s no executor. So, he’s assuming the role of the administrator or executor
as that term is defined in section 2203 of title 26.
5:20
Now, here’s where constructive trusts comes in. A constructive trust is what a court of equity
uses to give restitution and reimbursement to the plaintiff. And, because you have not identified
yourself as an executor, or a beneficiary, or a heir to the estate, the judge is assuming the role of
the executor or administrator, and he appoints the plaintiff as the beneficiary of the legal estate of
the decedent which is the all-capital-letter name, and he makes you a trustee. Now, the purpose
of a trustee under trust law, is to run the estate for the benefit of the beneficiaries, or the heirs –
legal or lawful – or illegal. In this case, nobody has been identified on the court record as the
heir or beneficiary, or the executor, so they’re assuming control of your estate, because you’re
not assuming the responsibility. That’s why they run over you every time you go into court.
That’s why they don’t listen to you. After seven years – now you need to write this down and
read it – Title 5, section 5565, and 20 CFR 404 says, that any government agency can issue a
presumptive death certificate if there’s been no beneficiary or heir to the estate for seven years.
This came from cestui que vie trust in 1666 – you can download this off of the internet. This is
where this came from. If you were lost at sea for more than seven years, you were declared
legally dead. So, there’s a presumption that you are dead because you haven’t identified yourself
as, either a heir, a beneficiary, or executor, or administrator of the estate, which is the all-capital-
letter name. That’s why you have no standing in court. Now, probate law came from
ecclesiastical law, and if you read the admiralty practice book, it’s called The Law and Practice
of Admiralty, and it’s available on the internet, by Richard Clerk. It’s called Clerk’s Praxis. In
1692, John E. Hall revised, Clerk’s Praxis.
8:50
Now, what is Clerk’s Praxis? Richard Clerk was head registrar under the Court of Arches under
the Queen’s Bench, and he wrote a practice book called The Law and Practice of Admiralty, and
they used this in the vice-admiralty courts during the American Revolution, and in there he says
that, all probate courts came from ecclesiastical law, as well as did admiralty-maritime law.
Admiralty maritime law came from ecclesiastical law, so the impetus of all these different
divisions of law – admiralty-maritime, ecclesiastical, probate, canon law – they all came from
ecclesiastical law and this is what Richard Clerks Praxis says. And, the original book was
written in 1692. Then it was revised in 1760, then in the early 1800s John E. Hall revised it. I
have three copies of the original. I have the original. I went up to the library at Dayton, Ohio.
They tried to hide it from me. They had it in their secret document room, and they don’t want
people to find out what’s going on. So, what they’re doing is, they’re probating your estate
which is an admiralty-maritime function.
10:25
Now, this goes along with the Huntress Case that says that, all revenue is of admiralty-maritime
law. This was a case that was decided in the Vice-Admiralty Courts. All taxes are revenue or,
Re-Venue – that’s what that means. So, when they’re going into – they’re probating your estate
– the purpose of the probate is to determine, who’s going to pay the taxes. You need to get the
book. There’s a book called, The Complete Book of Wills, Estates, and Trusts by Alexander
Bove – you can buy it on the internet. And, in there, he says that – and this is where
“redemption” is missing the boat…
Maria: Slow down with that name again….
11:45
Jean: ….. Who is Alexander Bove? Alexander Bove is an associate professor at University of
Massachusetts, in Boston, Massachusetts. He teaches tax law and trust law and estate law, and
he is also a practicing attorney – he has his own private practice – and I called him up. I told him
that I read his book and I had some questions regarding gift and estate taxes, and he referred me
to Phil Lilly, who is the top gift and estate attorney in the United States. I went down and talked
to him and this is what he said to me: You’re scaring the sh__ out of me. And, the reason he
said that is because he knew that I understand that everything is a gift and estate tax. Now, the
question becomes, Who owes the tax? And, when you go into court, that’s what they’re
determining – I don’t care what they call it –a criminal proceeding, a civil proceeding, they can
call it anything they want.
Maria: …foreclosures, anything.
Jean: I don’t care what they’re calling it. They’re masking – I can prove it. I’m going to take
you into the IRS code and show you that, when they do a foreclosure, it’s a forfeiture. Isn’t that
what they say when they do a complaint – a non-judicial foreclosure? They call it a forfeiture.
Go into the IRS website and download their seizure and forfeiture manual. It says that they use
Supplementary Rule C of the Supplementary Admiralty-Maritime Rules to do a forfeiture and
seizure. Forfeiture is taxes – revenue. It’s a tax court. So, what they’re doing is – now, here’s
what Alexander Bove says – that, in order to get settlement and closure when the estate is being
probated, there has to be an agreement between the trustees and beneficiaries as to what tax is
owed. So, what I did – I had a criminal case – I did a complex trust, and I served it on the judges
– I had a process-server serve it. And then, I had it served on the district attorneys. They sat
down and read it for fifteen minutes and they ran out of the courtroom. They didn’t walk. They
ran. I’m not making this up. They really did this. The process server stood there and watched
this whole thing. They ran out of the courtroom, shut the court down. And, they hired attorneys
to try and get out of this. They couldn’t get out of it. And, the reason they couldn’t get out of it
was because, I appointed them executors and administrators, and I appointed them as the
trustees. And, under 3-601 of the Uniform Probate Code, when you appoint someone as trustee
over somebody else’s estate, they have to put up a bond to indemnify their duty as a fiduciary
trustee. So, I made them put up a $100,000 fidelity bond, and they couldn’t do anything. They
either had to put the bond up, because the trust called for them to do that, or they had to dismiss
the case. So, they dismissed the case. They shut the court down and dismissed the case. And,
this is what’s going on in the courtroom when you go in there. So, you have to identify – this is
why you don’t have standing. And, what they’ve done is – and you can look this up – North
Carolina right now is the only state that has the deadman statutes in it.
16:45
Maria: Okay, let’s slow down a little bit to make sure people grasp what you are saying…. We
want you to understand that, everything is a taxing situation….
Jean: So, until you have an agreement between – so, if you identify yourself as the executor –
and, what you want to do is identify yourself as the grantor/settlor.
18:08 [interruption]
So, what they do is – I’ll give you an example of what’s going on and I won’t use any names
because I don’t want to compromise these people. I’m involved in about three criminal cases,
and the US Attorney signed the indictment. That means that they have a claim against you –
they’re asserting a claim. It doesn’t mean they have a claim. It means, they’re saying they have
a claim. None of these indictments are signed by a grand juror under Criminal Rule 7 of the
Federal Rules of Criminal Procedure. In order for them to indict you or charge you criminally,
they have to bring you before the grand jury. And, you have a right to impanel the jury to make
sure that they’re qualified to be a juror. That means that, you can cross-examine the jurors, to
see if they qualify.
Maria: Okay but they never let the indicted person into the proceedings.
Jean: That’s because there is none – because, it’s a tax issue. So, what I do is, I tell them – and,
that’s where this publication that I wrote, and it’s 127 pages long – what they’re doing, it’s called
a put and a call. A put is a buy option and a call is a sell option. And, what they do is…….
[logistics interruption] I’m going to pull this document up and give you an explanation of what a
margin call is. It says, You’re sitting at the Blackjack table and the dealer throws you an Ace,
you’d love to increase your bet but you’re a little short on cash. Luckily your friend offers to
spot you fifty dollars and says you can pay him back later. Tempting, isn’t it? If the cards are
dealt right, you can win big and pay your buddy back his fifty dollars with profits to spare. But,
what if you lose? [logistics interruption]
22:15
I’m reading this so you can understand that, when they’re buying on margin, they’re using credit
– okay? And, what they do is, they go into the World Trade Center and they’re buying
commodities and securities using your credit. Okay, when they do that, they spot them fifty
percent credit. They don’t have to put any money up. If they go over the fifty percent – which is
a certain amount – then they have to use someone else’s – they have to come up with money.
That’s where you come in. Investing on margin isn’t necessarily gambling, but you can draw
some parallels with margin trading and the casinos. Margin is a high-risk strategy that can yield
a huge profit if executed correctly. The dark side of margin is that you can lose your shirt and
any other assets you’re wearing. This is called risk management. In other words, you’re coving
their risk. Or, in insurance jargon, they call this re-insurance.
23:43
So, what you’re doing is underwriting their risk that they put up, because, if they over-extend
themselves, they become liable. So, what I do is I do a margin call. Now, this explains what
buying on margin is. It means, borrowing money from a broker to purchase stocks. So, what
they’re doing is, borrowing money from you to purchase stock. You can think of it as a loan.
You’re loaning them money. It has nothing to do with criminal charges. Margin trading allows
you to buy more stock than you’re able to buy normally. To trade on margin you need a margin
account – well, they have a margin account. Okay, so when you go in there and they buy on
margin, and if it becomes too risky, then they have to put up money to cover the risk. This is
called risk management. And, that’s where you come in. You’re covering their risk – or, risk
management.
25:11
Now, this explains it. The dreaded margin call, in the provision section we discussed, the two
restrictions imposed on the amount you can borrow. First, the initial margin – this is the initial
amount you can borrow – second, the maintenance margin, which is the amount you need to
maintain after you trade. These are set by the federal reserve board. Now, all of these courts
have an account. Here in California – in your state, you have to look it up – they use…
Maria: How do you look it up?
Jean: Look it up on the internet. I can show you one, but let me go through this first and I will
show you one. They have three agreements. They have a depository agreement, they have a
security agreement, and they have an escrow agreement. And, they have a direct account with
the federal reserve bank in New York City. They have about sixty trillion dollars. All of your
states are doing that. And, North Carolina – and, I’m going to show you one in North Carolina –
and, what it is is a security agreement, and they talk about Circular 16. They deposit securities in
the Federal reserve bank under Circular 16. Now, here in California, they use Circular 7 – not
Circular 16 – and the difference between the two is, under Circular 7, they do a direct electronic
transfer, and you can download Circular 7 off of the internet so you can see how it’s done. I’ve
ordered Circular 16, so I can show you on the screen, so I’ve got it ordered from the Federal
reserve bank. They print these up. So, what they’re doing is buying everything on margin. So,
what I did in this criminal case that I’m involved in, I did a margin call. Now, how did I do a
margin call – remembering that everything is a tax bill. Okay, here’s something that you can use
to your advantage… I know an attorney whose name is Mitchell Stein. And I have some of his
complaints and I’m willing to share them with you. He’s suing Bank of America, and before this
thing is done, there’s probably going to be about 10,000 plaintiffs in it. It’s going to bankrupt
Bank of America but it’s never going to go to jury trial. What he’s done is, he’s asked the judge
for an order making them reveal the source of the funds under the Patriot Act. And, the Patriot
Act is called the Bank Secrecy Act – you need to write this down! I can show you the code
sections. They’re in Title 31, section 5311 et seq. There’s about fifty sections in there. Now,
they have Treasury regulations that govern the Bank Secrecy Act. They’re found at 31 CFR
section 103.11. It’s the code section. These are the Treasury regulations that govern the Bank
Secrecy Act. And, what that requires them to do is to file currency reports revealing the source
of the funds. Well, if they reveal the source of the funds, it’s going to show two things. If they
show the private side, you’re the source of the funds. If they show the public side, they’re going
to show the investors as the source of the funds. And, the reason being, they borrowed – the
servicing company, which created the pooling and servicing agreement – they borrowed money
from the investors to buy the mortgage-backed securities, which are your notes, which they put
into circulation. So, they’re the borrower. See, you have two borrowers, under the deed of trust
and the note, you are the borrower – on paper, you are the borrower, that is – but under the
pooling and servicing agreement, the servicing company is the borrower, and the investors are
the creditors. So, what they’re doing is, collecting payments from you – mortgage payments –
and forwarding them to the investors, as cash-flow claims. But you’re not a party to the pooling
and servicing agreement. And, under the statute of frauds, they can’t do that, because it’s not
memorialized – it’s not in writing – and, it’s not signed by you. You did not sign a pooling and
servicing agreement so they can’t make you legally liable for the payment, but they’re doing it.
You’re an undisclosed third party to the pooling and servicing agreement, which is an investment
contract. It has nothing to do with a mortgage loan. The mortgage loan was a ruse to get the
collateral to securitize the loan, and by securitizing, I mean, off-balance sheet financing. What
they did when they securitized the note, they separated the note from the deed of trust. The note
represents the obligation, the deed of trust represents the mortgage. And, the note, which is the
obligation, is attached to the mortgage through the deed of trust. When you separate the note
from the deed of trust, it collapses the trust, and it makes the loan unsecured. The note is no
longer secured by the property, because they separated the note – which is the corpus of the deed
of trust. Now, this is where trust law comes in, and also where taxes come in. When you do a
capital transfer – they’re transferring the note as a security to a trust fund under a pooling and
servicing agreement. That’s a capital transfer tax. They haven’t paid the capital transfer tax.
So, this is what’s going on, as far as mortgage foreclosure cases.
32.53
Now, we’re going to go back to the margin call. So, when you go in there – in the courtroom –
you have to ask the judge, and what they do is – under section 1014 [error – section 2032A(e)
(1)] of Title 26, which defines a qualified heir. A qualified heir is, anybody who receives money
or property from a decedent. So, they’re receiving money from the all-capital-letter name. So,
they’re a qualified heir. They have to pay the inheritance tax, which is talked about in 2032A(e)
(11). Now, I can show you this if you want to see it. But, it says they have to put a bond up for
the tax. And, they have to put the bond up and file it with the Secretary of the Treasury, which is
what you call the U.S. Department of Treasury, which is the U.S. International Monetary Fund,
to cover the tax liability, but they don’t do this. They make you do it. That’s why, when they do
a criminal case, they make you put the bond up. When you put a bond up, it indemnifies them
on the tax liability. That’s why everything is a tax. Now, when they do a margin call, they’re
using your credit. So, what I did in this criminal case is, I made the prosecutor prove up his
claim. I said if you have a claim file a 1099-OID showing the source of the funds. Now, he has
to do one of two things, since it’s a tax liability. He has to show that the defendant – or the
debtor – was the recipient of the funds. Or, he has to show where thee source of the funds came
from under the Patriot Act. And, he does this by filing a 1099-OID which is a margin call. So
now, he has to show the source of the funds – which means, who the payor is – that’s the source
of the funds. The payor is the person who put up the funds, and if you read an OID – I could go
in there and show you. It shows who the recipient of the funds is. Then you have to file a 1099-
OID and you have to file a 1040 and a 1040-V which is a payment voucher to the IRS. So, when
they do – that’s what a margin call is. If they don’t put up the 1099-OID, then you can ask for a
dismissal of the claim of the case, because they failed to state a claim upon which the court can
grant relief. They don’t have a claim against you! If they can’t prove that you’re the recipient of
the funds, they can’t have a claim on a tax liability. And, that’s what they’re doing is, they’re
buying on margin. And, another thing is, when they put that bond up, the bond has to be
registered. If they don’t register the bond, they have to pay the tax on it. And, if you read this
127-page – we’re going to make this available to people – under section 144, it’s called a private
bond. Now, what they did is, they put up a private bond, but they didn’t register it, so they owe
the tax on it. And, what they’re doing is, they’re making you – they’re using your exclusion and
your Unified Tax Credit to cover the tax on the margin call. Now, you can verify this, if you go
up on the IRS web site – I can do this right now. I can show you how to go in there. You go into
Part 2, it’s called the…
Maria: Why don’t you do that.
Jean: You want me to do it?
Maria: Yes.
Jean: Okay, hang on, we’ll do it.
Maria: So that people can see exactly.
Jean: See where it says Document 6209? It says 2011 edition – that’s the one you want.
They’ve changed the name of the document. It used to be called the IDRS, which means
Integrated Data Retrieval System – ADP, Automated Data Processing Manual, that’s what this is
called. See, they’ve reduced it down, which means they’ve taken – I have one that’s 2003 and
2010 – this is only 504 pages long, so they just came out with this one in 2011. The 2010 has
645 pages in it. So, I don’t know what they’ve put in here. So, they’ve taken stuff out, and I
don’t know what they’ve taken out. Okay, I called up Alvin Brown, who’s a chief criminal
prosecutor for the IRS, and I said, I have a question about Class 5 gift and estate taxes and I
asked him a question and he said, How’d you find that out? I said, I read the IDRS Manual and
he said, well, you’re not supposed to be reading that, it’s for official use only, and I said, Yeah,
that’s why I read it. He started laughing, but he said I was absolutely right….. It just tells you
that – but if you go into the old manual, in part two [pause].
Maria: We now have the link on how to go look it up.
Jean: I recommend that you go look at the 2010 manual. And, here’s what it says. It says the
W-2s, W-4s, 1099s, 1098s, 1096s, all 1099s are classified gift and estate taxes… I recommend
you get the 2010 manual --- they just came out with this. I’ve got the 2003 and the 2010 manual,
but I don’t have this one. They must have just come out with this. We can cover that next
week.
41:46
The purpose of showing you that is that all W-2s, W-4s, 1099s and 1096s are gift and estate
taxes. So, that means that when you’re working for somebody, that means you have a donor and
a donee….[logistics pause]… and the donor is liable for the tax. If he doesn’t pay it, the donee
has to pay it. When you have wages, and you file a W-4 and a W-2 – because they’re all
classified as gift and estate taxes – so, the donor has to pay them. So, who’s the donor? The
employer is the donor. So, what he does is, he gets you to pay the tax for him – to withhold it by
filing a W-4. They do the same thing on a sales tax. The sales tax is a tax on the seller, not on
the buyer. What you’re doing is paying all their excise tax for them. The tax on a sales tax, is a
tax on the seller for the privilege of selling tangible retail property at the retail level. I have a
U.S. Supreme Court decision that says this. And, it’s the State Board of Equalization vs. San
Mateo County is the name of the case. And, in there, they tell you that the seller is liable for the
tax, but what they do is they collect it from the buyer. And, they can’t collect it from you if you
refuse to pay it. But, it’s their tax, it’s not your tax. The point I’m trying to make here is that
you’re paying all their taxes for them and you’re doing this at the wage level, and you’re doing it
at the court level. When they do a foreclosure – when they foreclose on that property, and, it’s in
856. It tells you that they have – if you read – and I can pull that up if you want … What they’re
doing is billing you for the tax. Now, on a Class 5 gift and estate tax, in 2603, which I’ll show
you here in a minute – [pause] – it’s called a taxable termination. Anytime you terminate
somebody’s interest in property, there’s a….
46:38
Okay, this is liability for tax. The definition of a taxable termination is when you terminate…
someone’s interest in property which is what they’re doing when they foreclosure on you.
They’re terminating your interest in the property. So, who does that? Isn’t it the trustee? On a
non-judicial foreclosure? Okay, what does this say. This is 2603, subsection 2, taxable
termination.

§ 2603. Liability for tax

(a) (2) Taxable termination
In the case of a taxable termination or a direct skip from a trust, the tax shall be paid by
the trustee.

In the case of a taxable termination the tax shall be paid by who? The trustee. Well, why aren’t
they paying the tax? The tax is what they’re foreclosing on…. Is what they’re doing a forfeiture
on. Write this stuff down – so you can see what they’re doing.
48:05
[pause] Okay, this is 2612 of title 26. Write this down. It tells you what a taxable
termination is.

§ 2612(a) Taxable termination

(1) General rule
For purposes of this chapter, the term “taxable termination” means the termination (by
death, lapse of time, release of power, or otherwise) of an interest in property held in a
trust…

It means the termination by death, lapse of time, release of power, or otherwise of an interest in
property held in trust.
Maria: What’s the title again… ?
Jean: It tells you what a taxable termination is. They’re terminating your interest in the
property held in trust. What’s it in trust in? It’s in the deed of trust. Isn’t the deed of trust a
trust?
Maria: Yes.
Jean: Isn’t your property in the deed of trust?
Maria: Yes.
Jean: Doesn’t that represent the mortgage on the property, and the note known as the obligation
on the mortgage – part of the deed of trust?
Maria: Yes.
Jean: So, they owe the tax as the trustee on a taxable termination under 2603, which I just
showed you…. So, they’re doing a taxable termination. Now, I have a set of DVDs on this. I
went through the entire IRS code and I have it all on – it’s a 6-DVD set on a seminar I did in
Cleveland about five years ago. But, this is what’s going on. And, now, you know what I mean
when I say if you don’t understand trust law, commercial law [inaudible} …what’s going on. Do
you understand why?
52:00
Okay, now I’m going to show you something….
FASB means Financial Accounting Standards Board. [FASB is on the internet] You click on
this, now you’re in here. See where it says EITF? You go in here. See where it says Full Text
Abstracts [on the left]?
Click on that. This is your FASB regulations. Now, I’m looking for Financial Accounting
Standards Accounting number 95, which is Statement of Cash Flows, so you click on the link
“76-100” – 95 is between 76 and 100…. You have to “accept” the terms, because this is all
private, copyrighted law. This is called Statement of Cash Flows – you need to sit down and
read this…. You want to go down to page 63. People think I’m being facetious when I say you
have to understand accounting. You’re going to say, What does this have to do with taxes? It
has everything to do with it. All of this is inter-related. Go down to page 63. Here’s page 63,
footnotes. It says,

FAS95, Footnote 1--Consistent with common usage, cash includes not only currency on
hand but demand deposits with banks or other financial institutions. Cash also includes
other kinds of accounts that have the general characteristics of demand deposits in that
the customer may deposit additional funds at any time and also effectively may withdraw
funds at any time without prior notice or penalty. All charges and credits to those
accounts are cash receipts or payments to both the entity owning the account and the
bank holding it. For example, a bank's granting of a loan by crediting the proceeds to a
customer's demand deposit account is a cash payment by the bank and a cash receipt of
the customer when the entry is made.

How many of you are familiar with IRS form 8300 – Cash payments of more than $10,000? See
what they’re doing is, you made a cash payment to them – and I’m going to prove it to you – at
closing – that’s what paid for the loan – and that’s what this says. I want you to read this. I
don’t care if you have to sit here for an hour to understand this. You need to understand this.
This is why you’re not winning in court…. [repeats and goes on] It says “Consistent with
common usage, cash also includes currency on hand but demand deposits with banks or other
financial institutions. Cash also includes other kinds of accounts.” So, you have two – you have
currency and you have accounts. Accounts are cash. They’re selling your receivables and your
payables, because you never laid claim to them – as cash. That’s why I’m showing you this.
“Cash also includes other kinds of accounts that have the general characteristics of demand
deposits in that the customer may deposit additional funds at any time and also effectively may
withdraw funds at any time without prior notice or penalty.”
57:25
Now, this right here is really important. So, I’m going to go over it very slowly. It says, All
charges and credits to those accounts are cash receipts or payments to both the entity owning the
account and the bank holding it. And, it gives you an example. It says, “For example, a bank
giving you a loan by crediting the proceeds to customer’s demand deposit account is a cash
payment by the bank and a cash receipt of a customer when the entry is made. Have you ever
asked them where your cash receipt is?
Maria: For the closing of the mortgage?
Jean: Yes. Did you ask them for the cash receipt under FASB #95?
Maria: Nobody knew about that.
Jean: If you read my Letter Rogatory, I shut the court down. I asked the judge for FASB #95. I
even quoted it in there. Where’s the receipt for my payment to the bank? And, where is the –
what does it say? – where’s the payment? You have two things – you have a payment and a
receipt. It’s a payment by the bank and a cash receipt of the customer when the entry is made.
So, you made a cash payment to the bank. Well, where’s the receipt for that cash payment?
Maria: And, we never get them because nobody knew to ask.
Jean: Because, nobody asks for it. Now you know what I mean. I’m just showing you isolated
incidents.
Maria: Does this follow through also with criminal cases, or filing fees – stuff like that?
Jean: Yes.
Maria: So, if you’re a plaintiff, you go in and ask them, Where’s my cash receipt?
Jean: Yeah, ask the judge – the judge has accounting books – the clerk has accounting books.
I’m going to show you the security agreement that says that – I’m going to show you an actual
security agreement. This is why you’re not winning in court. And, why you have to file an
adverse claim which we’re going to go into…. This is your authority for doing this. This is your
authority for demanding it. Tell them you want a receipt. I can show you the IRS code that says,
they have to give you a receipt for the securities.
Maria: When you ask for it?
Jean: When you ask for it.
Maria: Does it matter if the situation is many years old?
Jean: Nope. Okay, I’m going to close this out. Has everybody got this? … You aren’t going to
get this in one sitting…
[discussion about webinar setup and expectations]
1:01:50
Jean: Okay, I’m going to show you something else. Now, this is Cornell Law, and I use Cornell
because it’s a good source. I’m going into Title 12 section 1813(l)(1) and when you read this,
you’re going to see the connection between FASB and – that’s why I keep telling you – you’ve
got to understand tax law. Okay, I’m in Title 12, section 1813(l)(1). Here, it says, Deposit…
this is k, l, this is 1813(l)(1) of title 12. I’m going to show you that corporations – in the accrual
accounting method – corporations use debt as money. You have receivables, and payables.
Receivables are assets to the bank and liabilities to the depositor. Payables are assets to the
depositor and liabilities to the bank. That’s why they have to balance their books. That’s why
you need to ask them for the RC-S – the RC-C balance sheet on the call reports, and the 2046
balance sheet. And, you’ll notice, in my Letter Rogatory, I ask them for the accounting under
the Patriot Act. You can do this under the Patriot Act.
( http://www.fdic.gov/regulations/resources/call/crinst/601rc-c11.pdf )

1:04:13
Okay, we’re going to go over this…. It says, the term, deposit…

§ 1813(l) Deposit
The term “deposit” means—
(1) the unpaid balance of money…

Jean: Now, notice here, it talks about money.

…or its equivalent received or held by a bank or savings association…

Jean: So, you have two things. You have money or its equivalent.

…in the usual course of business and for which it has given or is obligated to give credit,

Jean: So, you give money to the bank, and they give you credit for the money. That’s what you
should be doing – setting up an ACH electronic transfer. In one of these classes – but first I
want to get the basics. You can set up an electronic transfer account and deposit money in there
and then, write checks on it. I can show you how to do that.
Maria: And, that’s the “other than money” so it’s an equivalent?
Jean: Yes, you can use the equivalent of money. That’s what “redemption” is. Acceptance for
value is a banker’s acceptance – that’s the equivalent of money.

…either conditionally or unconditionally, to a commercial, checking, savings, time, or

thrift account, or which is evidenced by its certificate of deposit, thrift certificate,
investment certificate, …

Jean: Okay, you had in investment contract. Remember I told you, because your note is a
security – it’s an investment contract?
Maria: Okay.

….a certificate of indebtedness, or other similar name, or a check or draft drawn against a
deposit account and certified by the bank or savings association, or a letter of credit or a
traveler’s check on which the bank or savings association is primarily liable: Provided,
That, without limiting the generality of the term “money or its equivalent”, any such
account or instrument…

Jean: Now, remember, it says either “account” or “instrument” so a receivable or a payable

would be money, or its equivalent – or instrument. The instrument would be the promissory
note. The promissory note is an instrument. It’s a general intangible, which we’re going to go
into…. We probably won’t have time to cover it tonight.
Maria: Not tonight…
Jean: Now, listen to this:

…must be regarded as evidencing the receipt of the equivalent of money when credited or
issued in exchange for checks or drafts or for a promissory note

Jean: So, when you give them a promissory note, they issue you credit in exchange for the
promissory note.
Maria: That’s what they’re supposed to do.
Jean: Well, this is your authority for that. Doesn’t this say the same thing as FASB #95?
Maria: Just about.
Jean: Okay, so there’s your documentation – that they’ve received the equivalent of money or
cash, but you have to report it – as income – on a tax return.
Maria: Yeah, see, everybody thinks a tax return is only for their wages, which is completely
false.
Jean: You’re not the donor. Did you donate the money to yourself? Then, why are you filing a
tax return and reporting your wages as income?
Maria: That’s a very good point to bring up, because everybody has been snowed with the wool
pulled over their eyes to think that that’s all they have to report on that form. When, in reality,
they’re not supposed to report their wages at all. They’re supposed to report the moneys or the
equivalents of money, or the instruments of the equivalents of money.
Jean: Okay, let me show you something – real quickly. You can’t cover all this in one sitting.
1:09:47
Jean: Okay, here’s the IRS publication – it’s called publication 950 – introduction to estate and
gift taxes. This is page 5 of 12. What does that say. There’s your Unified Credit. It’s $345,800.
How many of you make more than that your paycheck? And, here’s your exclusion. You have a
$1,000,000 exclusion, which means you have to make over one million in order to have a tax
liability. How many of you make over one million dollars on your wages? Okay, now we go to
your estate. What’s the Unified Tax Credit on your estate tax? $345,800 and you have a
$1,000,000 exclusion. In 2009 they raised it to $1,455,800, and the exclusion is $3,500,000.
How many of you make $3,500,00? Can you show me a mortgage with a 3,500,000 tax credit on
it? How many residential mortgages are more than $3,500,000?
Maria: Not too many. So a person can essentially go out and say, I want to buy a house, and it
can be up to $1,000,000 and you can’t deny me.
Jean: That’s right. Don’t corporations uses tax credits as money? And, isn’t tax credits the
equivalent of money? And, if you don’t use the tax credits, isn’t that abandoned property?
Maria: Well, it is, but if you don’t know how to claim it... you have to be able to know how to
do it. And, know that it’s available to you.
Jean: Well, that’s where I come in [chuckles]. Now, here’s the tax form. Notice it says, United
States Gift and Generation-Skipping…. This is the tax form that you should be filing. Notice
here: it says, Maximum Unified \ Credit: 345,800. If you took this – see line 7 – there’s your
Unified Tax Credit, which you’re not claiming. They’re claiming it. Remember, a tax credit is
the same thing as money.
Maria: So, what should everybody be doing with their wages? Isn’t it on the wrong form if you
put it on a 1040?
Jean: Yes.
Maria: What should it be on?
Jean: 709
Maria: Their wages in addition to this maximum Unified Credit?
Jean: Yes. You should report the wages on here. And, you should show your employer as the
donor. Donor’s first name and middle initial. You put your employer down here as the donor.
Maria: Okay, so you don’t put your name on it at all. But it says, “Donor’s SSN”.
Jean: That’s their employer identification number.
Maria: Okay.
Jean: Now let me show you another form.
Maria: Okay, back up – let’s slow down. The 1040 form is only supposed to have the refund
line filled in – from what I understand. That your wages and the house mortgages and all of your
Unified Credit – you can put the whole $1,000,000 down there, can’t you?
Jean: Yes. What’s your first clue? Isn’t everything a gift?
Maria: Yes.
Jean: Why is it a gift? Let me show you another real quick and then, I’ll show you something.
Maria: Then I think we have to go over this again, so people can understand how they are doing
their reportings wrong.
Jean: Okay, here’s the 706, United States Estate – now, this is for your estate.
1:16:00
Remember, you have a $3,500,000 exclusion on the estate side. This has an instruction booklet
with it – you need to read the instructions – as does the 709. You need to download this form,
read the instruction booklet for the 706, and read the instruction booklet for the 709.
Maria: I think for people like me, we’re going to have to be going over that form, and putting
out a general informational example for people to follow.
Jean: Yes. I’m going to close this. I’m going to show you something. This is really important
for you to understand. I use Cornell Law – you don’t have to – I use it because it’s pretty simple
and it’s easy to get into. Notice this: Chapter 11 – Estate Tax, Chapter 12 – Gift Tax. The
donor is – if you go in here – see, here’s the rate of the tax right here. Now, here’s the
imposition of the tax – 2501. It says the donor is liable for the tax.
Maria: Where? Foreign corporation described?
Jean: The donor has to pay the tax. If the donor doesn’t pay it, the donee has to pay it. Okay,
this is 2512(b). When did you transfer? Doesn’t it say in the deed of trust – that I
hereby transfer all rights, titles, and interest in the below-described property to the lender? So,
you transferred – what’s the value of the property? Isn’t that the value of the loan?
Maria: Yeah, the mortgage.
Jean: Okay, so you…

§ 2512 (b) Where property is transferred for less than an adequate and full consideration
in money or money’s worth, then the amount by which the value of the property
exceeded the value of the consideration shall be deemed a gift…

Jean: Well, what was the consideration? You didn’t get any consideration. So, what you did is,
you donated the value of the property to them.
Maria: Yeah, but you never were told that that’s what’s happening.
Jean: Well, I’m telling you. Does everybody have this?
Maria: Now, we know that we donated it.
Jean: You donated the property, and they have to pay the tax on it. I’ll show you.
1:23:12
This is 6901(h)

§ 6901(h) Definition of transferee

As used in this section, the term “transferee” includes donee, heir, legatee, devisee, and
distributee, and with respect to estate taxes, also includes any person who, under section
6324 (a)(2), is personally liable for any part of such tax.

Maria: So, that’s where they get us?

Jean: That’s where they get you. And, isn’t this on every lien the IRS puts on there?
Maria: Yes.
Jean: 6324(a)(2) It says…

§ 6324(a)(2) Liability of transferees and others

…..and a like lien shall then attach to all the property of such spouse, transferee,
trustee…

They have a lien on them! Did they put up the bond? This is very important that you
understand this. “…a like lien shall then attach to all the property of the transferee, trustee” so
they have a lien on them don’t they?
Maria: Well, we didn’t know they did, but now we’re learning.
Jean: Okay, this is… bond in lieu of personal liability –

§ 2032A(e)(11) Bond in lieu of personal liability

If the qualified heir makes written application to the Secretary for determination of the
maximum amount of the additional tax which may be imposed by subsection (c) with
respect to the qualified heir’s interest, the Secretary (as soon as possible, and in any event
within 1 year after the making of such application) shall notify the heir of such maximum
amount. The qualified heir, on furnishing a bond in such amount and for such period as
may be required, shall be discharged from personal liability for any additional tax
imposed by subsection (c) and shall be entitled to a receipt or writing showing such
discharge.

Maria: Now, put that in English.

Jean: They have to put up a bond to indemnify them on the tax they owe on the transfer – as a
qualified heir. Okay, what is a qualified heir? You go up here and it tells you what it is.
Maria: How do they become a qualified heir?
Jean: They received property from a decedent’s estate.
Maria: And, that’s how they became a qualified heir.
Jean: Read this.
Maria:

§ 2032A(e) Definitions; special rules

For purposes of this section—
(1) Qualified heir
 The term “qualified heir” means, with respect to any property, a member of the
decedent’s family who acquired such property (or to whom such property passed) from
the decedent. If a qualified heir disposes of any interest in qualified real property to any
member of his family, such member shall thereafter be treated as the qualified heir with
respect to such interest.

Jean: Okay, let me ask you a question that will prove the point. Who created the all-capital-
letter name on the birth certificate?
Maria: The state?
Jean: Doesn’t that make them a heir?
Maria: I guess. Since they created it.
Jean: So, if they receive any property from that, and that’s what section 1014 says. Let me go
up and prove it. That’s what section 1014 says.

§ 1014. Basis of property acquired from a decedent

(a) In general
Except as otherwise provided in this section, the basis of property in the hands of a
person acquiring the property from a decedent or to whom the property passed from a
decedent shall, if not sold, exchanged, or otherwise disposed of before the decedent’s
death by such person…

Jean: Remember, I told you there’s a presumption of death? Because you haven’t stepped
forward? … to claim beneficiary or heir status to the estate?
Maria: Okay, so how can you claim that after seven years then?
Jean: Well, if you come in and do a live signature, and identify yourself as the executor of the
decedent’s estate, now they have to acknowledge that you’re no longer dead.
Maria: Right. And, everything they did they have to reverse.
Jean: Right. You’ve rebutted the presumption that you are dead. Now, you know why they
don’t listen to you when you’re in court. Can a dead man – under the deadman’s statutes – come
in and testify? Can you dig a person up – a dead body – and can he testify in court?
Maria: No. Okay we have ten minutes left….. let’s wrap this up.
Jean: Okay, I’m going to wrap this up. So, what they’re doing is probating your estate, and it’s
how you present yourself – what’s your status, this goes to status – how you identify. Are you
testifying as a dead person or are you testifying as an executor of the legal estate of the decedent?
Maria: Well, you have to identify yourself – I learned the term “living litigee.” Litigee can
mean dead or living, but if you specify living then you’ve got blood running through your veins
and you’re alive.
Jean: What identifies blood? Red ink signature.
Maria: Why don’t you talk about the importance of that.
Jean: When you sign documents with blue ink, they do not see the signature. In ancient times –
and, I have the documentation on this. We’ll go into it. You have to sign all of your documents
in red ink. And, you use your first and middle name. You use the sur-name which is the last
name – the family name – and you put a colon there – that separates the surname from the first
and middle name. Like in mine, I go Jean-Blaine: family of keating. So Jean-Blaine is my
Christian appellation that identifies me as a living person and I use the red ink signature to
identify that.
Maria: There are some of us that are learning that you can use our first and second name and
using “family of” is optional.
Jean: Yes, it’s optional.
Maria: The important thing is your first and second name with a colon after the second name to
separate that from any construing that of a commercial charter.
Jean: Right, and you have to – last in time is first in line. It says this in the Book of
Revelations. Those who are last shall be first. In bankruptcy, last in time is first in line. In
admiralty, first in line is

In admiralty, first in line is last in time. In bankruptcy, it’s last in time is first in line. Your name
has to be the last name on the page…. Your signature has to be the last signature on the page. If
you get a notary, have the notary put his signature before your name, not after it. If you put the
notary after your name, the court cannot see it, because it’s the last signature on the page.
Maria: Would it be advisable to put your signature in the footer?
Jean: Yes, you can write it in the bottom right-hand corner after you sign the line – you can
sign it three times. I sign it where the signature line is, I put it on the bottom right-hand corner
on the last page, and then I turn it over and put it on the back of the last page in the bottom right-
hand corner, so that they can’t put a signature after the last page.
Maria: That precludes them from endorsing anything.
Jean: Right. Now, you’re starting to get the idea. Now you know what the problem is, and what
the solution is. You’ve got to understand – before you find a solution to any problem – you
have to understand the problem.
Maria: Do you have any closing comments?
Jean: Study the material –you need to read this stuff and study it so you can recite it off the top
of your head. I don’t care if you have to take notes – write it down! When you write something
on paper, the mind takes a picture of it. This is how I can recite this off the top of my head. I’ve
been into this stuff so many times that I know where everything is – I have it memorized. I can
tell you what it says.
Maria: Go back and listen to this audio more than once….
Jean: This establishes your sovereignty as a living person and, if you want, next week, we can
go into the 11th Amendment. You should be using the 11th Amendment. Who is the sovereign
political body? It’s the people. So, why aren’t you using the 11th Amendment. The 11th
Amendment did not change Chisholm vs. Georgia. I’ve got a bunch of law reviews that go into
this. You see how this is connected? Your signature determines – in order to be sovereign you
have to be a living person. If you’re a dead person – what they’re doing is, taking your
sovereignty and using it, because you’re acting as a dead person. Remember, presumption and
that’s in Title 5, section 5565, 20 CFR section 404: presumption of death – go read it. I can
show you. Any agency of the United States or any employee can write a presumption of death,
because you haven’t come – this is all about responsibility. You’ve got to go in there and show
them that you’re a living person – not a dead person. You cannot come into court as a corpus
dilecti and say anything. That’s why the judge – isn’t that what they do? They ignore you and
everything you say in the courtroom?
Maria: That’s true. Okay, with that being said, we’re out of time for tonight.

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