Texas Billionaire Faces $2B Tax Fraud Charge--Largest Ever

In keeping with its promise to pursue high-ticket tax offenders, the Department of Justice (DOJ) recently announced a 39-count indictment against Robert Brockman, a Texas billionaire and CEO of Reynolds and Reynolds, an Ohio-based software company that provides services to car dealerships.

The allegations against Mr. Brockman are sweeping, including the use of offshore tax havens, secret Swiss bank accounts, and funneling proceeds from the sale of assets into other entities where they could remain hidden and untaxed.

The lengthy indictment against 79-year old Mr. Brockman outlines colorful details of decades of allegedly shady tax dealings including:

• Aware of the gravity of his two billion dollar tax evasion, Mr. Brockman was careful not to unwittingly disclose his ventures. He urged staff to use digital communication rather than paper and persistently used code names for people, places and things. One $634 million transaction was named “Hotrod,” while he named associates “Redfish,” “Bonefish,” and “Snapper.” Needless to say, Mr. Brockman had a luxe yacht named “Turmoil,” paid for with ill-gotten gains.
• Robert Smith, a prominent benefactor and billionaire philanthropist, was caught up in the network of Mr. Brockman. Code-named “Steelhead” by Mr. Brockman, Mr. Smith made news throughout the U.S. by agreeing to pay the student loans of the Class of 2019 of Morehouse College. Mr. Smith hid the proceeds of the tax scams of Mr. Brockman in the equity fund that he founded. Mr. Smith has since signed an agreement with the government to provide information, avoid prosecution, and pay $140 million in restitution and penalties.
• As the DOJ closed in, Mr. Brockman is accused of causing others to destroy, conceal, and tamper with computer data and documents—in other words—to destroy the evidence.

The IRS reeled in a big fish with this investigation. DOJ officials note, “As alleged, Mr. Brockman is responsible for carrying out an approximately two billion dollar tax evasion scheme. IRS Criminal Investigation aggressively pursues tax cheats domestically and abroad. No scheme is too complex or sophisticated for our investigators. Those hiding income or assets offshore are encouraged to come forward and voluntarily disclose their holdings.”

There is no doubt the criminal tax defense attorneys retained by Mr. Brockman will be the best that money can buy. Facing prison time and significant penalties for his decades-long schemes, Mr. Brockman is in for a fight, code-name, “Tax Trouble.”

Strategic legal representation when facing tax controversy

With offices in Cleveland and Chicago, the tax lawyers at Robert J. Fedor, Esq., LLC deliver aggressive criminal tax defense if you are challenged with allegations of tax crime or business concerns involving an employment tax dispute or offshore tax issue.   When you need experienced advice, call us at 800-579-0997 or contact us online when you need a skilled attorney you can count on.