$2 Billion Dollar Offshore Fraud
Robert T. Brockman, a Houston based Texas billionaire, allegedly conspired to defraud the U.S. Government out of $2 billion dollars in an offshore tax scheme that continued twenty years. This is one of the largest tax evasion crimes brought against an individual in the United States.
Offshore Tax Evasion in Bermuda, Nevis and Switzerland
Brockman was indicted on October 1, 2020 on several counts including, but not limited to, conspiracy to defraud the United States, Tax Evasion, Wire Fraud, Money Laundering, Evidence Tampering and Destruction of Evidence. Allegedly, Brockman began the tax evasion scheme in the 1990s using a series of offshore entities, bank accounts and networks in Bermuda, Nevis, Switzerland and the U.S. Purportedly, some of the U.S. based entities involved a combination of corporations, limited liability companies, trusts and partnerships, based in Texas, Ohio and Delaware.
Unreported Capital Gains
The indictment alleges that the objective of the conspiracy was that from 1999 through 2019, Brockman concealed from the IRS capital gain income he earned as a result of his investments in various funds. Brockman supposedly deposited those gains in unreported foreign bank accounts for the purpose of evading U.S. federal income taxes. The Bank Secrecy Act requires certain disclosures and reporting to the United States Treasury regarding bank accounts held in foreign countries on an annual basis on accounts which exceed $10,000. In order to conceal the transactions, Brockman allegedly created false paper trails regarding his offshore structure, including filing materially false U.S. Individual Income Tax Returns to give the appearance that Brockman did not own or control the respective entities, gains or bank accounts, when, in reality, Brockman did. Allegedly, the offshore and U.S. entities, and the false paper trails that followed, gave the appearance of being completely independent entities but were actually controlled by Brockman who retained full dominion over the network scheme to defraud the U.S. Government out of over $2 billion dollars.
Defrauding Investors
In addition to hiding taxable income, Brockman ostensibly used these entities to implement a series of mergers, acquisitions, debt and equity transactions to swindle millions of dollars from unsuspecting investors. Again, Brockman allegedly transferred these funds from U.S. accounts to offshore accounts, namely in Switzerland and Bermuda. In order to effectuate this mass conspiracy and fraudulent scheme, allegedly, Brockman hired individuals to “independently” manage the offshore and U.S. entities, trusts and bank accounts, when in fact, these individuals were compensated and employed by Brockman and subject to Brockman’s complete control. Brockman supposedly used encrypted emails and code names to manage the offshore structures and foreign entities.
Obstruction of Justice
Worse, Brockman allegedly engaged in obstruction of justice by destroying evidence himself and instructing others to destroy evidence in attempt to prevent law enforcement from learning about the true relationship and network between the offshore and U.S. entities and bank accounts. Supposedly, Brockman used shredders, hammers to alter, destroy or mutilate documents and computer information to eviscerate any evidence that may be used against him in an official proceeding.
Avoiding Accountability?
The indictment alleges serious felonious allegations and appears to be well founded with facts, evidence and supporting witnesses. Now that trial is looming, Brockman argues he cannot stand trial due to declining health. However, due to the 2020-2021 COVID shutdown, Courts implement methods for parties and witnesses to appear electronically, without having to physically be present at trial. Brockman could stand trial remotely. Is Brockman’s health argument legitimate or a ploy to avoid being held accountable? The trial court will decide.
Criminal Defense
If you have been indicted white collar crimes, the Spencer Law Firm can assist you. We assist clients who intentionally or unintentionally found themselves in felonious situations. Everyone deserves diligent and effective defense counsel. Give us a call at 713-961-7770 or contact us by email so that we can discuss your case.