Robert Brockman, chief of software firm Reynolds and Reynolds, received charges for allegations of concealing his income of $2 billion for years to evade taxes.
The chief executive officer of a software company has received charges for multi-billion tax evasion, a historic moment for all tax cases in the country. According to reports, Robert Brockman faces several allegations, including wire fraud and money laundering, on top of the $2 billion tax evasion charges.
Indictment
In a 39-count indictment released last Thursday, the Texan tech entrepreneur received a series of allegations. Those accusations include conspiracy, evidence tampering, not reporting foreign bank records, wire fraud, money laundering, among others. Particularly, those charges arise from the alleged attempt to conceal about $2 billion in income from the Internal Revenue Service. Brock also received accusations of defrauding investors in the debt securities of his company, The Reynolds and Reynolds.
ANNOUNCEMENT: Robert Brockman, CEO of multi-billion-dollar software company, indicted for decades-long #tax evasion and wire fraud schemes. Largest individual tax evasion case in U.S. history. #IRS @USAO_NDCA pic.twitter.com/558CWOK3FE
— IRS Criminal Investigation (@IRS_CI) October 15, 2020
San Francisco attorney David Anderson told the press: “The allegation of a $2 billion tax fraud is the largest-ever tax charge against an individual in the United States.”
Vista Equity Partners chief Robert Smith cooperated with the prosecutors for the investigation. Brockman serves as an investor for Smith’s company. Meanwhile, Smith had admitted to participating in the alleged tax evasion scheme. US Attorney Anderson said: “SMith’s agreement to cooperate has put him on a path, away from the indictment.”
Series of Alleged Crimes
In a press conference, IRS Criminal Investigation chief Jim Lee expressed his disbelief over the historic case. “Dollars amount aside, I have not seen this pattern of greed or concealment and cover-up in my 25+ years as a special agent.”
Particularly, Brock allegedly concealed his income through a web of Caribbean entities. He also reportedly used an unreported taxable income to purchase a luxury yacht. The tech businessman even used code names, like “Bonefish,” to conceal communication systems. Also, he even instructed an associate to destroy documents using hammers and shredders.
Some Responses
CNN Business reported that Brockman attended an initial federal court hearing. The 79-year-old businessman pleaded not guilty on all counts and got out for a $1 million bond. Also, his counsel told CNN Business, “We look forward to defending him against these charges.”
If the court convicts Brockman, officials say he could face a “substantial period of incarceration,” on top of restitution and criminal forfeiture, CNN Business reports.
Meanwhile, a Reynolds and Reynolds spokesperson noted that the charges only involve Brockman’s acts outside his responsibilities in the company. “We are confident in the integrity and strength of our business.”
