USA tycoon who pledged millions for Black students admits tax fraud

  • USA tycoon who pledged millions for Black students admits tax fraud

USA tycoon who pledged millions for Black students admits tax fraud

Brockman was alleged to have dedicated crimes together with tax evasion, wire fraud, and cash laundering.

"This non-prosecution agreement underscores the importance of cooperation with a federal criminal investigation", Mr. Anderson said. Reynolds and Reynolds, which is headquartered in OH, gives provides, software program merchandise and consulting to vehicle dealerships nationwide.

"The allegation of a $2 billion tax fraud is the largest ever tax charge against an individual in the United States", said U.S. Attorney David L. Anderson during a Thursday news conference.

Vista did not immediately respond to a request for comment.

Smith's settlement includes a non-prosecution agreement that says he failed to pay about $30 million in taxes, with penalties and interest making up the remainder of the expected payout, according to a person familiar with a call that Smith conducted Wednesday. Mr. Brockman for years directed investments of tens of millions of dollars into Vista's funds, according to the indictment.

Smith, 57, stunned a senior class past year when he promised to wipe out the student loan debt of the entire graduating class at Morehouse, a historically Black all-male college.

Brockman, 79, is a resident of both Houston, Texas and Pitkin County, Colorado.

"The allegation of a US$2 billion tax fraud is the largest-ever tax charge against an individual in the United States", David Anderson, the USA attorney in San Francisco, said at a news conference.

Mr Smith is a founder of Vista Equity Partners in San Francisco, and is the richest African-American investor in the U.S., according to Forbes. Smith hid more than $200 million in income from the IRS in offshore business holdings, using the money to invest in real estate.

Bloomberg News first reported the tax investigation into Smith in August. "We is not going to hesitate to prosecute the neatest guys within the room".

To keep up the scheme, Brockman used secret, encrypted email systems to coordinate with offshore money handlers, according to the indictment.

While little known on Wall Street, Mr. Brockman helped launch the career of Mr. Smith, who has become the wealthiest Black person in the US and one of the private-equity industry's most prominent figures, thanks to his firm's high returns and unique strategy for turning around software companies - as well as his own splashy philanthropy. However, in exchange for his cooperation in the Brockman case and other related probes, the DOJ allowed Smith to sign a non-prosecution agreement. This amounted to an estimated $40 million.

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

Would you rather have money or be poor and have a good family?

"Smith committed serious crimes, but he also agreed to cooperate", he said.

"It's by no means too late to do the best factor", Anderson mentioned about Smith throughout Thursday's information convention. Smith founded it in 2000.

While some of the money in the offshore entity ultimately went into Fund II Foundation, a charity Mr. Smith created in 2014, he withdrew untaxed funds for his personal benefit from 2005 to 2013, according to a statement he signed with prosecutors on October 9. Prosecutors said Mr. Smith used the money to purchase ski properties in the French Alps and a vacation home in Sonoma, California.

-Laura Saunders contributed to this article.