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Houston billionaire Robert Brockman charged in $2b tax evasion scheme

Christian Fernsby ▼ | October 16, 2020
Houston billionaire Robert Brockman was charged in a $2 billion tax evasion scheme.
Robert Brockman
Houston   Robert Brockman
The U.S. Department of Justice officials unsealed an indictment charging Brockman with tax evasion, wire fraud, money laundering and other offenses. Federal prosecutors allege that Brockman orchestrated a decades-long scheme to hide approximately $2 billion in income from the Internal Revenue System.

Brockman, who serves as CEO of Ohio based Reynolds and Reynolds, is alleged to have used a network of secret accounts in Switzerland, Bermuda and Nevis to shield income earned on private equity investments into Austin-based Vista Equity Partners from the IRS.

According to the indictment, Brockman in 2000 committed $300 million to Vista Equity's first private equity fund. In 2004, Brockman's investment into Vista Equity increased to $1 billion. Ultimately, Brockman earned approximately $2 billion in capital gains through his investments in Vista funds, on which no U.S. federal income tax was paid, according to the indictment.