And the Runner-Up: Honorable Mention on the 2020 CSI List

offshore taxesFor the last several months, we’ve been counting down the top five list of criminal tax charges of 2020 from the IRS Criminal Investigation Division (IRS-CI). Because of the sheer audacity of the tax fraud, we decided to include the Honorable Mention. Whether you think we’re milking it, or you have been hankering for one more look at the type of tax crimes the IRS considers really big, here it is.

 

What's fishing have to do with it?

In October 2020, Texas billionaire Robert T. Brockman, 79, was indicted by a federal grand jury on 39 allegations following a lengthy IRS criminal tax investigation. The charges against Mr. Brockman are broad, including wire fraud, tax evasion, money laundering, destruction of evidence, and other crimes. According to the Department of Justice (DOJ), Mr. Brockman is alleged to have used offshore tax entities in Bermuda and foreign bank accounts in Switzerland to stash about two billion in income over several decades. The U.S. attorney for the Northern District of California remarked, “The allegation of a $2 billion tax fraud is the largest ever tax charge against an individual in the United States.”

 

According to The Washington Post, Mr. Brockman started his career at Ford Motor and moved on to IBM before forming a company that was later acquired by Reynolds and Reynolds. As long ago as 1999, Mr. Brockman began moving money into offshore accounts in Bermuda and Switzerland to avoid reporting income earned from privately managed equity funds.

 

Mr. Brockman used encrypted mail systems and code language to communicate with his global money handlers. He assigned handles to associates that related to his longtime interest in fishing. His code name was “Permit,” while others were known as “Snapper,” “Redfish,” and “Bonefish.” Ironically, the name of his $29 million yacht (which the IRS claims was acquired with tainted funds) is “Turmoil.”

 

The DOJ notes Mr. Brockman’s Big Adventures were not harmless. He is accused of scamming investors out of approximately $68 million. The case is going to be a tough one for Mr. Brockman. His longtime co-conspirator Robert F. Smith, signed a non-prosecution agreement and paid $139 in exchange for his cooperation and testifying against Mr. Smith.

 

As the case awaits trial, lawyers for Mr. Brockman claim he suffers from dementia and cannot stand trial. At the same time, the U.S. Attorney’s Office seeks to seize a 3,900 square foot fishing lodge located in prime fishing territory in Colorado. Government agents claim Mr. Brockman purchased the property with money laundered through his offshore evasion network.

 

As fish stories go, this one is a whopper. Will the government seize the luxe fishing lodge on the Fryingpan River? Will Mr. Brockman beat the rap by proving he is incompetent? We’ll have to wait and see.

 

Protect your wealth with seasoned legal advice and knowledgeable offshore tax guidance

The tax attorneys at Robert J. Fedor, Esq., LLC work with clients involved in tax litigation, or seeking experienced tax advice to grow their business or personal wealth. From offices in Chicago and Cleveland, we help clients find smart strategies to complex tax problems. Take advantage of a free consultation with our tax group. Call 800-579-0997 or contact us today.

 

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