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

Christian Fernsby |
Houston billionaire Robert Brockman was charged in a $2 billion tax evasion scheme.

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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.

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