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Show I! 41 jure 16C TheSa It Lake Tribune, Thursday, A ug U. Names New Yorker as Metallurgy Head ust 7. 1986 S.L. Salesman Faces Charges er Case In Windmill Tax-Shelt- By Joan O'Brien Tribune Staff Writer A Salt Lake City man sold an abusive tax shelter involving the lease of windmills that generated enormous tax writeoffs but no electricity, the Justice Department claims in a lawsuit filed this week. Benjamin Helsten, owner of Utah-baseTrans Power Manufacturing Inc., allegedly lied to investors who e tax shelter, bought the government attorneys charge in the lawsuit filed Tuesday in U.S. District Court for Utah. The crux of the defendants scheme was, and is, to sell to investors wind turbine units which were grossly overvalued and which were never available to be placed in service or use, and to tell the investors they could properly claim the resulting excessive investment tax credit and energy tax credit, the complaint d wind-turbin- states. Tax Division attorneys are asking for an injunction against Mr. Helsten and his company. Filed along with the complaint Tuesday was a statement by Mr. Helsten consenting to the entry of an injunction against him without admitting or denying any of the governments allegations. That injunction still awaits the signature of U.S. District Chief Judge Bruce S. Jenkins. Court documents state that under a separate agreement reached last week with government lawyers, Mr. Helsten will also pay a fine of an undisclosed amount to the Internal Revenue Service. I think the complaint is fallacious, Mr. Helsten said Tuesday evening. If I were a rich man, I'd fight it. He said his company has not sold the shelter for two years anyway. According to the complaint, the tax shelter was designed to provide a 10 percent investment tax credit, a 15 percent energy tax credit, deprecia- tion and other deductions so investors could shelter from taxation all- - or part of their income. California investors were told they were eligible for an additional 25 percent energy tax credit under state law, the suit says. The Justice Department claims that from 1981 to 1984, Mr. Helsten and his company sold the wind turbines to investors for $200,000 to $360,000, with downpayments of $40,000 to $100,000. The balance of the purchase price was payable through a promissory note, but government attorneys claim those notes were shams and "were used only to increase tax benefits." The investors were then eligible for tax benefits substantially in excess of any cash paid into the subject tax shelter. the complaint alleges. The government claims the tax shelter promotion may be responsible for some $10 million in lost tax revenues. The government contends the wind turbines were grossly overvalued, making the tax shelter abusive. "The wind turbine units sold to investors in the tax shelter plan have been plagued with problems and have generated no electricity, the complaint states. No engineering studies or other tests were conducted by defendants prior to selling the wind turbine units to investors. Therefore, there existed no data to support the vastly inflated claims of power output and energy to capture as represented by the defendants to the investors. Furthermore, none of the wind turbine units was ever placed in service despite the defendants representations to the investors that the wind turbine units were generating electricity, the government alleges. Laird B. Coggins invented the wind turbines in 1981 and employed Mr. Helsten as a sales agent. The complaint says Mr. Helsten in 1982 obtained the rights to manufacture and sell Goggins turbine equipment. We totally disagree with them that what we sold is overvalued at all, Mr. Helsten said. He said his company decided to stop selling the turbines two years ago because the equipment that we had just wouldn't hold up over time the poeple we had manufacturing them just didnt build them strong enough. Mr. Helsten said his company didn't make a nickle on the product. Mr. Helsten said he didnt know how many people invested in the wind turbine tax shelter. But I know that we have every intention of fulfilling our obligation to all the people who have worked with us, he said. The injunction signed by Mr. Helsten and government attorneys requires Mr. Helsten to disclose the names and addresses of all the investors who participated in the tax shelter and the names and addresses of all the people who sold the tax J. Gerald Byrne, a New York na- tive and former associate chairman the University of Utah department of materials science and engineering. has been appointed chairman of the university's department of metallur-o- f gy and metallurgical engineering, He succeeds John A. Herbst. 0D-SJ- KENT TO U 03ED333B 30 35 $40 - : DISH 7 1 1 I ' IC3-JUL- I ! renters. GARAGE In Your choice of colors. 93 '(eS,ra . 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