He’s accused of hiding $2 billion from taxes.
Source: Richard Moorhead
A Texas software billionaire is being charged with tax evasion in a case federal prosecutors are describing as the largest incidence of tax fraud in American history.
79-year old Robert Brockman was charged in a 39-count indictment that includes charges of money laundering, conspiracy, wire fraud, and tax evasion, with an indictment being unsealed by the US Attorney for the District of San Francisco on Thursday.
Brockman is the CEO of the Reynolds & Reynolds Company, which develops software for automotive companies. He’s being accused of hiding more than $2 billion in capital gains from the IRS, utilizing a complex scheme of companies and trusts registered in notorious Caribbean tax havens such as the British Virgin Islands to conceal his wealth.
Brockman is alleged to have intentionally destroyed electronic devices, documents and other pieces of evidence that would reveal the nature of his tax avoidance system in the unsealed indictment. He was released from jail custody on a $1 million bond Thursday, and has plead not guilty to the charges.
David Anderson, a San Francisco federal prosecutor, described the magnitude of Brockman’s alleged tax cheating setup at a press conference announcing the charges on Thursday. “The allegation of a $2 billion tax fraud is the largest-ever tax charge against an individual in the United States,” he said.
The evidence that led to the indictment of Brockman was largely obtained from another billionaire, Robert Smith. Smith agreed to a non-prosecution with federal authorities earlier this month for tax evasion of his own, providing information on tax avoidance schemes utilized by the ultra-wealthy.
Greed of this nature is absolutely sickening, if the allegations made in the indictment are legitimate. The IRS should relentlessly pursue billionaires such as Brockman and Smith, making their tax compliance the priority over “average” Americans.