FTB Raids Hungtington Beach man with bad Search Warrant
On May 2, 2001, 25 FTB (Franchise Tax Board) agents with guns raided Nick Jesson's business: No Time Delay Electronics in Huntington Beach, (Orange County) California without a Search Warrant listing that address.
Then, FTB agents with guns kicked down the door of Nick Jesson's home, when the nanny (with Nick's kids) asked for a Search Warrant.
At first, agents refused to give Nick a Search Warrant, but after they had extracted most of the computers, papers, money, and valuables, they produced a Search Warrant a year out of date, with only the home listed, not the business and missing the required affidavit. (No Wonder they didn't want to give it to him!!)
Huntington Beach Police and Fountain Valley Police refused to look at the search warrant.
The Orange County Sheriff never arrived when called.
Nick Jesson filed briefs with the Fullerton court to quash the outdated, incomplete search warrants.
On 5/9, and again on 6/19 and 6/20, Judge James P. Marion, at O.C. North Court in Fullerton refused to hear about 4th Amendment rights.
The judge refused to discuss "Probable Cause" disputing the notice that Nick sent the FTB as insufficient to hold a hearing on Penal Code 1538.5.
The Appeals Court finally ordered Judge Marion to hold a 1539 & 1540 hearing to return some items seized.
In the 1539-1540 hearings on 6/19 and 6/20, the FTB offered some token items, and the judge appeared to allow the FTB to withhold most items, until the Judge discovered that FTB agent Ed Wilson (based in West Covina) admitted on the witness stand that he hadn't made sure that Nick Jesson had even got the Withholding Order that he claimed was dated 4/30/2001 before requesting the Search Warrant.
When the judge discovered that the Search Warrant was premature (before the Withholding Order was even delivered), his eyes went wide. When FTB Agent Wilson further explained that the Search was to find out the Taxpayer's State of Mind, and it appeared that the Agent's previous sworn testimony that Jesson had committed a felony was false, the Judge blurted out "You used my warrant for this?!!". Suddenly the Judge allowed Nick's attorneys to reclaim almost half of the wrongly-seized items.
You would have thought the judge would already have been more amenable after he admitted that he had changed the Search Warrant's original wrong date from 1999 to 2000, when he should have changed it to 2001, and that he forgot to list the business address that the FTB agent gave him.
The FTB just keeps blowing it:
1) the Search Warrant should not have been requested before the Withholding Order was delivered.
2) a Search Warrant with a date a year old and lacking one address should not have been used, especially not at the unlisted address.
3) when the appeals court asked for the "return of the warrant", the FTB failed to properly itemize things
4) after a 30-day extension (ex-parte, where the FTB did not bother to send notice to Jesson), the FTB still failed to properly itemize things
Why would the FTB do this to Nick?
1) Nick was featured in USA Today as 1 of 5 businesses that don't withhold (see
2) Nick is showing people that the Federal Reserve is a fraud (a private Corporation that is milking all IRS taxes under the guise of being Government) by trading Orange County local money based on Gold.
3) Nick does not owe income taxes to the IRS or FTB, therefore he has not filed (see http://members.tripod.com/~wethepeople/irs/USA010323.htm,
4) Nick's ex-CFO was convicted of embezzling $470,000 from 40 elderly (after Nick fired her) and offered to help the IRS do a sting on Nick to stay out of jail. Nick foiled the IRS sting operation, so only the FTB could try something.
The FTB claims that #3 is the reason for the current actions.
Nick thinks #2 & #4 are the real reason behind the scenes.
Many people think that #1 is flipping out the IRS and FTB, but the IRS & FTB can't do anything about it: it's legal.
Nick's website http://www.taxdefensefund.com explains his situation.
The FTB has stolen all his bank accounts and funds, his company hard-drives, his sales data, etc.
He has hired 2 of the best tax lawyers available: Noel Spaid and Derrick Tabone. (Derrick Tabone of Van Nuys recently got a $250,000 settlement from the FTB for his client Paul Balmer.)
The FTB's incompetence here should end up blowing them sky-high.
If you think you can help, go to http://www.taxdefensefund.com,
or call Nick at (800)936-7290, email him at email@example.com,
or fax him at (714)375-5537.
Nick should end up winning, because the FTB has been incompetent at everything so far. But he needs your help to continue his fight.
Jim Krage (http://members.tripod.com/~wethepeople &