Houston Software Executive Robert Brockman Charged With Tax Evasion

Robert-Brockman tax evasion

He gained widespread acclaim previous year when he vowed to pay off the student loans of the graduating class of Morehouse College.

Prosecutors said Brockman used encrypted emails with code names, including Permit, Snapper, Redfish and Steelhead, to carry out the fraud and ordered evidence to be manipulated or destroyed.

Brockman's investment in the first private equity fund set up by Smith came from an entity held as part of the A. Eugene Brockman Charitable Trust, which was named for Brockman's late father. Reynolds and Reynolds, which is headquartered in OH, provides supplies, software products and consulting to automobile dealerships nationwide.

He faces seven counts of tax evasion, six counts of failing to file reports disclosing foreign bank accounts, and numerous other counts including wire fraud, money laundering and evidence tampering.

He will pay $140 million to tax authorities as part of the arrangement, the Justice Department said in a statement Thursday.

According to U.S. media reports, Smith cooperated with authorities in Brockman's case.

Brockman, 79, is a resident of both Houston, Texas and Pitkin County, Colorado. "We look forward to defending him against these charges", said his attorney, Kathryn Keneally of Jones Day.

In response to the DOJ, Brockman is charged with conspiracy, 7 counts of tax evasion, 6 counts of failing to file global checking account experiences, 20 counts of wire fraud affecting a monetary establishment, 2 counts of concealment cash laundering, and 1 rely every of worldwide concealment cash laundering, proof tampering, and destruction of proof.

As part of the agreement, Smith agreed to pay over $139 million in taxes and penalties.

Mr. Brockman set up a complex network of offshore companies and trusts created to hide $2 billion in gains earned from investments in Vista's private-equity funds, according to the indictment.

A spokesman for Smith could not be reached immediately for comment.

Messrs. Brockman's and Smith's alleged tax evasion was "brazen, intentional and significant", said Jim Lee, chief of criminal investigations for the Internal Revenue Service.

According to the indictment, Brockman gave an unnamed individual detailed instructions regarding the proposed gift to the college, including talking points, and directed the person to threaten to pull out if his demands were not met.

"Complexity will not hide crime from law enforcement".

Prosecutors said Mr Smith admitted to using a nominee trustee and corporate manager to his involvement in four offshore firms.

"In some ways, it does kind of conflate the message of whether bad deeds can go away with the payment of a lot of money and you can avoid the criminal justice system", said Mr. Neiman, now a partner at Marcus, Neiman Rashbaum & Pineiro LLP.

But Mr. Anderson said that Mr. Smith "has accepted responsibility and provided "complete and truthful cooperation".

"It's by no means too late to do the best factor", Anderson mentioned about Smith throughout Thursday's information convention.

Mr. Smith, 57, whose net worth Forbes has estimated at more than $5 billion, founded Vista in 2000 with $1 billion from a charitable trust established by Mr. Brockman's family. Prosecutors said Mr. Smith used the money to purchase ski properties in the French Alps and a vacation home in Sonoma, California. "That's the message we intend to send".



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