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Texas Billionaire Robert Brockman Facing Charges Over Alleged $2 Billion Tax Fraud Scheme

Brockman is pleading not guilty to all accusations, in contrast to Robert Smith, who is collaborating with law enforcement and agreeing to pay back around $140 million to resolve the tax investigation against him.

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Robert F. Smith is not the only billionaire having significant tax issues with US authorities, it turns out. Texas billionaire Robert Brockman, who is known as the man whose family trust provided Smith with the initial funds needed to launch his Vista Equity Partners, is facing even more serious allegations of tax evasion, with authorities charging him with a $2 billion tax fraud scheme that they say is the largest ever such case against an American citizen.

Brockman is entering a not guilty plea to all allegations, in contrast to Smith, who is collaborating with law enforcement and agreed to repay around $140 million to end the tax investigation against him. According to The Associated Press, he is suspected of using multiple corporate organizations with addresses in areas like Bermuda and Switzerland to conceal billions of dollars in capital gains from the government. The method was intricate and, for at least 20 years, successful, but US Attorney David L. Anderson of the Northern District of California claims that complexity isn’t always a good way to evade the law:

“Complexity won’t make crime harder for law enforcement to find. Complexity is not an effective defense against federal criminal accusations… The smartest men in the room will be prosecuted without hesitation.”

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Brockman used Zoom to appear in federal court, entered a not guilty plea, and was then “released” on a $1 million bond. Brockman is accused of using a number of strategies, including encrypted communications with codenames like “Permit,” “Snapper,” “Redfish,” and “Steelhead” to direct the deletion or alteration of evidence, to conceal his financial holdings from taxation. They also disclosed details on what Brockman allegedly did with some of his untaxed money, which included the $2.5 million purchase and substantial improvement of a vacation home in Sonoma, California, and the $13 million contribution to real estate and charitable endeavors in Colorado.

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A total of 39 counts, including ones for tax evasion, wire fraud, money laundering, and other offenses, are included in the indictment against Brockman.

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