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On October 15, 2020, a federal grand jury in San Francisco, California, returned a 39 count indictment,[1] charging Robert T. Brockman, the Chief Executive Officer (CEO) of an Ohio-based software company with hiding $2 billion dollars worth in income in what the Internal Revenue Service and U.S. Attorney David L. Anderson characterized as the largest tax evasion case in U.S. history.[2] On the same day the Justice Department (DOJ) announced that Robert F. Smith, the Chairman and CEO of a San-Francisco based private equity company, entered into a Non-Prosecution Agreement (NPA) with DOJ for his involvement from 2000 through 2015 in an illegal scheme to conceal income and evade millions in taxes by using an offshore trust structure and offshore bank accounts.[3] Smith worked with Brockman and will cooperate through his NPA in the prosecution of Brockman.
[1] United States v. Robert T. Brockman., U.S. Dist. Court, N.D. Cal., CASE NO. 3:20-cr-00371 WHA
Indictment, Oct. 1, 2020 https://www.justice.gov/usao-ndca/press-release/file/1327926/download.
[2] U.S. Department of Justice, CEO of Multibillion-Dollar Software Company Indicted for Decades-Long Tax Evasion and Wire Fraud Schemes, Press Rel., Oct. 15, 2020; Michael Levenson, U.S. Brings ‘Largest Ever Tax Charge’ Against Tech Executive, N.Y. Times, Oct. 15, 2020.
[3] U.S. Department of Justice, Private Equity CEO Enters Into Non-Prosecution Agreement on International Tax Fraud Scheme and Agrees to Pay $39 Million, to Abandon $182 Million in Charitable Contribution Deductions, and to Cooperate with Government Investigations, DOJ Press Rel. Tax 20-1102, Oct. 15, 2020.