October 15, 2020

Robert F. Smith, who formed and beneficially owned Belize entity the Excelsior Trust and Nevis entity Flash Holdings, has entered into a non-prosecution agreement, agreeing to pay $139 million, to resolve claims that between 2000 and 2015 he unlawfully used the offshore entities and their offshore bank accounts to conceal income earned by him on private equity investments and evade millions in taxes.  Using the offshore trust accounts, Smith willfully did not report to the IRS over $200 million of partnership income.  In addition, he unlawfully failed to report his ownership of foreign bank accounts in BVI and Switzerland.  The $139 million settlement consists of $56 million in taxes and penalties on unreported income and $82 million in penalties stemming from his failure to report his offshore bank accounts.  In addition, Smith agreed to abandon a $182 million refund claim based on alleged charitable contributions in 2018 and 2019.  DOJ; USAO ND Cal

Tagged in: Abusive Tax Shelters, Criminal Proceedings, Financial and Investment Fraud, Tax Fraud,