Financial Times Quotes Matt Mueller On Largest Tax Evasion Case In U.S. History

Shareholder Matt Mueller recently discussed with the Financial Times a case that has been billed as the largest tax evasion case in United States’ history.  Billionaire Robert Brockman has been charged with numerous federal crimes including tax evasion, money laundering, and wire fraud stemming from allegations that he hid $2 billion in income from the IRS using a web of offshore entities and secret bank accounts.  Another billionaire, Robert Smith, was allegedly involved in the offshore tax evasion discussed in the Brockman indictment, but was able to secure a non-prosecution agreement in exchange for his cooperation and agreement to pay substantial sums of taxes and penalties to the IRS ($139 million paid and $182 million in tax refund claims abandoned).

Excerpts from the article below:

“You could look at it as chutzpah, or you could look at it as a proactive defence strategy,” Matthew Mueller, a former DoJ tax prosecutor now in private practice at Wiand Guerra King, said of the claims filed by Mr Smith.

He noted that one of the factors prosecutors weigh in bringing criminal tax evasion cases is whether they can prove that the target owes the government money. Tax refund claims in excess of any liabilities can be a useful defence.

Mr Smith gave up the claims as part of his deal with the DoJ that also requires him to cooperate. “He may actually be entitled to make those deductions, but clearly it was worth it to walk away from them to avoid prosecution,” said Mr Mueller.

For the full article, please visit the Financial Times’ website (subscription required).

For more information, please contact Matt Mueller at mmueller@wiandlaw.com or 813.347.5142.   Matt is a former federal prosecutor in Tampa and Washington D.C. focusing his practice on the defense of white collar matters, including criminal and civil tax cases.