There are two certainties in life, death and taxes.
So when I was sifting through SEC filings and went down a rabbit hole — and found out how a Texas billionaire tried to hide a whopping $2 billion from the tax folk…
I just had to tell you about it.
That said, let me show you what this crook was up to and how he tried to hide his income…
And why it’s so important to follow these greedy players.
$2 Billion Scheme Ends In Fiery Flames
Nothing irks people more than the rich escaping Uncle Sam…. So get ready to celebrate!
This Texas Billionaire may be the king of crooks that screwed the government.
A software company CEO who hid almost $2 billion worth of income from the taxman. Thereafter, he took lengthy measures to destroy evidence when he discovered that the feds were onto him.
And guess what?
This is a buy one, get one free catch for the feds. That’s right, two Texas billionaires for the price of one.
Robert T. Brockman is something of a legend. A Texas billionaire who started to make a name for himself back when he worked in sales at IBM. In 1969, he was named No. 1 Salesman of the year.
Now, Brockman sits at the head of a Texas software company, Reynolds and Reynolds as CEO and Chairman.
Too bad Reynold & Reynolds’ innovative software couldn’t help them see this chaotic storm coming.
Brockman’s clean record was shattered when the CEO received a staggering 39 count indictment from the DOJ.
It turns out Brockman had some nasty habits that included ── Tax evasion. Wire fraud. Money laundering. And much MUCH more.
How This CEO Got Nabbed
Uncle Sam is claiming that Brockman hid nearly $2 billion in income from the IRS. A move that was part of a much bigger scheme to defraud the Reynolds & Reynolds’ debt securities investors.
In a lengthy 42-page indictment, the feds claim Brockman has been hammering away at this scheme since the late 90s.
Between 1999 and 2019, the CEO supposedly had a web of offshore entities at his disposal stretching from Nevis to Bermuda. These nooks and crannies were used to hide income earned from certain investments managed at a San Francisco-based firm.
This sly dog would then move these fat UNTAXED gains to secret bank accounts in Switzerland and Bermuda.
Brockman took many measures to ensure his nasty behavior was never discovered.
And it worked…. for 20 years.
He backdated records and created his own encryption to communicate with a soon to be exposed co-conspirator.
The cherry on top Brockman sh*t sandwich is a doozy.
From 2008 to 2010 the CEO supposedly was part of an extravagant scheme to obtain…. Cough cough steal $67.8 million from Reynold & Reynolds’ debt securities.
See the strings attached to Brockman’s plush position as CEO meant he contractually could NOT buy Reynold & Reynolds’ debt securities without giving notice. He also was demanded to disclose and amend linked credit agreements fully.
The indictment also claims that the CEO got down and dirty with a third-party to dance around these demands. This special helper aided him in buying Reynold & Reynolds’ debt securities and hiding valuable economics data from sellers.
Allegedly he used non-public info about Rey & Rey to make these moves…. Which people on the street call insider trading.
Brockman’s last move was to mess with, destroy, and flat out murder evidence.
According to the indictment, the reason was purely to stop it from becoming evidence in the grand jury investigation.
Who can we thank for this explosive information? Another Texas billionaire!
Robert F. Smith who just and I mean JUST reached a $140 settlement with the DOJ.
A conclusion to a hefty 4-year criminal TAX investigation.
Smith, known for being a famed all-around good guy…. Seriously, he is the guy who swore to pay all student loan debt for Morehouse college students.
But only a year later, Smith was fingered for not paying taxes on nearly $200 million in assets. Assets that had been moved to offshore accounts.
Sound familiar? You betcha! These accounts were tied to Brockman.
Turns out Smith in exchange for not being criminally charged has flipped on Brockman. And now is fully adding the feds in their case against the software CEO.
Listen, if you think shady activity only goes on in private companies…
Then I hate to break it to you, but you’re mistaken.
I put together this important training guide to show you just how much shady activity is going on in the options market… and how you can develop the necessary skills to level the playing field.
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