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Author Topic: Software tycoon charged over biggest alleged tax evasion scheme in US history  (Read 333 times)

brotherS

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From https://www.reuters.com/article/idUSKBN2702MA:

Houston technology executive Robert Brockman has been charged in the biggest tax evasion case in U.S. history after fellow billionaire Robert Smith turned against him to avoid prosecution himself, the Justice Department said on Thursday.

Brockman, the 79-year-old chief executive of Ohio-based Reynolds and Reynolds Co, hid $2 billion in income from the Internal Revenue Service over two decades, using a web of off-shore companies in Bermuda and St. Kitts and Nevis, according to an indictment unsealed on Thursday.

Reynolds and Reynolds provides software used by auto dealerships to help manage their business.

The indictment alleges Brockman appointed nominees to manage the off-shore entities for him as a means of hiding his involvement, saying he even went so far as to establish a proprietary encrypted email system and use code words such as “Permit,” “Red fish” and “Snapper” to communicate.

...

Another link: https://www.bbc.com/...d-us-canada-54548626

Fascinating! :o Am I the only one wanting more details on the proprietary encrypted email system? :) Gonna be interesting to see what the resulting fines/prison time will be, if any.

Deozaan

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Am I the only one wanting more details on the proprietary encrypted email system? :)

Knowing how the the media operates, they probably already told you everything about it in the part you quoted. :P

wraith808

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The sadder part of this is that the person that ratted on him was the one that at the Morehouse commencement said that he was going to pay off a lot of students' debts.  It's unknown as that was charitable donations if it is going to be able to be honored.

https://news.yahoo.c...d-pay-204500089.html

brotherS

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Am I the only one wanting more details on the proprietary encrypted email system? :)

Knowing how the the media operates, they probably already told you everything about it in the part you quoted. :P
:D

The sadder part of this is that the person that ratted on him was the one that at the Morehouse commencement said that he was going to pay off a lot of students' debts.  It's unknown as that was charitable donations if it is going to be able to be honored.

https://news.yahoo.c...d-pay-204500089.html
Yeah, I thought that was a nice gesture when I read about it back then. A bit weird (like a surprise lottery), but nice. But it looks like Smith is still a billionaire, so if he hasn't already paid off their debts, he will hopefully still do so. :)
« Last Edit: October 17, 2020, 05:29 AM by brotherS »

brotherS

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From https://www.justice....tax-fraud-scheme-and :

Additionally, Smith agrees to abandon his protective claims for a refund totaling approximately $182 million that were filed with the IRS. The protective refund claims consisted, in part, of claims filed with the IRS for charitable contribution deductions on Sept. 21, 2018, and Oct. 11, 2019. As a result of the agreement, Smith shall take no further direct or indirect tax benefit from such claims.
Not too familiar with the tax code, but this could mean that he already paid off the student loans and the IRS just won't let use those payments to reduce his own taxes.

We may find out some day. :)