A man in Washington state was busted for running a bank, with $28 million in deposits, out of his house:
A man operated a “warehouse bank” out of his suburban home, taking at least $28 million from people around the country who wanted a discrete [sic — I assume they mean discreet –MH] bank account, according to court documents.
An IRS investigator said Robert Arant had hundreds of customers, many of whom apparently used his bank, Olympic Business Systems LLC, to conceal assets for the purpose of evading taxes.
On his now-defunct Web site, Arant advertised his services to those “who would rather not deal directly with the banking system,” court records said.
Um, wow. Wesabe tip: don’t do this! Okay, you knew that. Tax evasions posing as shelters are incredibly dangerous for consumers. Remember the number one heuristic for evaluating offers like this: if it sounds too good to be true, it probably is. Don’t deposit your funds with an institution unless you’re sure they’re legitimate — for instance, you can identify a legitimate U.S. bank by searching for them on the FDIC web site.