Belize Developer Indicted in U.S.

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One of the prominent players developing the Placencia peninsula in Belize is facing a federal indictment in the U.S., alleging he spent years avoiding taxes and lying under oath.

James R. Parker, who lives in Carefree, Arizona, was the owner and c.e.o of Mackinnon Belize Land and Development, a Belize company that developed the master-planned project known as the Plantation. The Internal Revenue Service alleges Parker and his wife, Jacqueline, conspired to hide millions of dollars in income from their Belize real estate business. The Parkers have entered a not guilty plea. Their attorney declined to comment on the charges.

In part, the indictment centers on Mackinnon's 2004 deal to sell 597 acres on the north end of Placencia for $6 million to ioVest Development, the company developing Ara Macao, a much-discussed, long-delayed development.

Parker is not formally involved with Ara Macao. But promotional material for the project distributed in 2006 touts Parker's "long term relationship" with Said Musa, then the prime minister of Belize. Musa served as Parker's "in-country attorney for over 5 years and a political ally for over 8 years," the packet says.

"It is believed that this relationship should bode well for the Ara Developer and foster a spirit of cooperation between the government of Belize and the Ara Macao Resort & Marina," the prospectus says.

According to the indictment, Parker deposited the money into a Belize bank and then used a serious of accounts to funnel the money back to the United States to avoid taxes. The money was used to buy a Rolls Royce and maintain the Parker's lifestyle in years when they never reported more than $40,000 in income, the indictment alleges.

The government's case against the Parkers actually stretches back to 1997 and 1998, when the Parkers reported only about $10,000 in income. An IRS audit determined that the Parkers were not reporting income from their Belize business, according to the indictment.

In 2003 the Parkers agreed to pay $1.7 million in taxes and penalties. But they never paid, the IRS says.

"As early as 2002, in anticipation of substantial tax liability... Parker began to hide the defendant's assets and income sources in order evade the payment of taxes," the indictment alleges.

For years the Parkers attempted to reach a settlement with the IRS, repeatedly claiming that they didn't have the resources to pay the $1.7 million. In submissions to the IRS, the Parkers claimed they were "unable to pay their rent, were impoverished, and would be homeless if not for the kindness and support of their two children," even though they drove the Rolls, lived in a $1 million house and appeared  to control several properties and companies, the indictment charges.

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