Jump to content
Sign in to follow this  
Admin

[Slashdot] - Billionaire CEO of Software Company Indicted For Alleged $2 Billion Tax Evasion Schemes

Recommended Posts

The billionaire chief executive of Ohio-based Reynolds and Reynolds Co, Robert Brockman, has been indicted on charges of tax evasion and wire fraud conducted over "decades." ZDNet reports: The scheme, in which roughly $2 billion was hidden away in offshore accounts and through money laundering, took place between 1999 and 2019, the US Department of Justice (DoJ) said on Thursday. According to the indictment (.PDF), the resident of both Houston, Texas, and Pitkin County, Colorado allegedly used a "web" of offshore organizations in Bermuda and Nevis to hide the profits he made from investments in private equity funds. Brockman squirreled away his capital gains and also tampered with the evidence of his alleged activities, prosecutors say, by methods including backdating records and using "encrypted communications and code words" to communicate with co-conspirators, including the phrases "Permit," "King," and "Redfish." A ranch, luxury home, and yacht were among the purchases apparently made with non-taxed income. US prosecutors also say that between 2008 and 2010, Brockman used a third-party entity to purchase $67.8 million in debt securities from the software company. As CEO, the executive is not permitted to do so without full disclosure as it can have an impact on share prices and trading; however, Brockman allegedly did so without informing sellers. As a result, approximately $2 billion in income was kept hidden from the US Internal Revenue Service (IRS). In addition, US prosecutors allege that investors in the software firm's debt securities were also defrauded. A federal grand jury in San Francisco, California has issued a 39-count indictment, including seven counts of tax evasion, 20 counts of wire fraud, money laundering, evidence tampering, and destruction of evidence.

twitter_icon_large.png facebook_icon_large.png

Read more of this story at Slashdot.

D-Czjx3PfPU

View the full article

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...

Important Information

By using The Great Escaped Online Community, you agree to our Privacy Policy and Terms of Use