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.”

The post Software Firm CEO Robert Brockman Charged Over Alleged Massive Tax Evasion Case first appeared on Tekrati and is written by Sam Arnold

The creator of an antivirus software, John David McAfee, faces charges from the Department of Justice for tax evasion. On Monday, the prosecutors unveiled the indictment against the businessman. While in Spain, they arrested him. Meanwhile, he also faces complaints from the Securities and Exchange Commission over misleading people when recommending cryptocurrency offerings.

Alleged Tax Evasion

The allegations name McAfee for not filing taxes for several years between 2014 and 2018. While he earns millions of dollars at that time, the indictment accuses him of avoiding taxes by putting his income into different bank and cryptocurrency accounts not named after him. He also used other names to allegedly hide his property and assets like real estate or a yacht. However, the indictment did not indicate how much McAfee owes.

John McAfee, the antivirus software magnate, has been indicted for tax evasion in the US. He was arrested in Spain. https://t.co/5LzpbZLw5e

— CNN Business (@CNNBusiness) October 6, 2020

Prosecutors filed the indictment under seal last June. They unsealed it after McAfee got arrested in Spain, awaiting his extradition.

Alleged Misleading Recommendations

Also, the Securities and Exchange Commission slammed McAfee with a lawsuit on Monday. The SEC accuses him of not disclosing to the public that companies paid him to promote and recommend cryptocurrency initial coin offerings. The SEC alleges that it happens at least between November 2017 and February 2018, the Reuters reports.

“McAfee leveraged his fame to make more than $23.1 million in undisclosed compensation,” the SEC stated.

Aside from that, the SEC also accuses McAfee of “falsely” claiming to be an investor when he recommends ICOs. The complaint reads: “In reality, McAfee’s tweets were paid promotions disguised as impartial investment advice.”

Likely Consequences

So, if the Department of Justice decides to convict McAfee due to tax evasion charges, he will likely have to serve five years of jail time for every tax evasion count. Additionally, he also looks to a one year maximum for every count of his failure to file his taxes. Furthermore, he also faces a period of supervised release, restitution, and penalty of $350,000, CNN reports per the indictment.

Meanwhile, the SEC looks to impose a civil penalty on the cybersecurity entrepreneur. Moreover, the commission also intends to permanently ban McAfee from serving as an officer/director for any listed firms or companies under the agency’s umbrella.

The post Anti-Virus Software Creator John McAfee Indicted By US Justice Over Tax Evasion first appeared on Tekrati and is written by Sam Arnold