The ongoing case of United States v. Rhodes offers a detailed examination of how sovereign citizen ideologies intersect with legal disputes, particularly regarding tax fraud. In this case, the U.S. government accuses Norman Rhodes of using “Pure Trust Organizations” as a mechanism to evade federal tax liabilities. The government argues that these trusts, marketed as tools for avoiding taxation and government regulation, are sham entities designed to obscure income and property ownership.
The case hinges on evidence from the “Voice of Freedom” website, operated by Brent Johnson, a known promoter of sovereign citizen ideas. Articles posted on the site describe “Pure Trust Organizations” as structures rooted in “common law,” allegedly making them immune to statutory oversight.
Rhodes’s legal troubles began when he adopted these strategies in the late 1990s, transferring his business and residential property into entities styled as trusts. The government alleges that these actions were intended to conceal his assets from the IRS, enabling him to avoid federal income taxes. Johnson, who served as a “fiduciary owner” of the trusts, is central to the case, both as a promoter of the schemes and as an individual Rhodes consulted for guidance.
The government’s motion to admit three key exhibits—articles from the “Voice of Freedom” website—seeks to establish that Rhodes acted willfully and with fraudulent intent. These articles, authored by Johnson, advertise “Pure Trust Organizations” as a means of shielding assets from taxation, probate, and government intervention. The government argues that these materials directly influenced Rhodes’s actions and are critical evidence of his intent to defraud.
The court is tasked with addressing the validity of arguments rooted in pseudo-legal interpretations. Courts have consistently rejected such claims, labeling them as frivolous and without legal basis. It is the expectation that will be the outcome of this case as well.
Citation: United States v. Rhodes, Case No. 2:21cv12383, U.S. District Court for the Eastern District of Michigan