The 39-count lawsuit – filed earlier this month in the Northern California District and not concealed this week – reads for hours like a screen: Allegations against Brockman include running a complex web of foreign companies and bank accounts; using unreported taxable income to buy an expensive yacht called “Chaos;”; creates an encrypted email system to communicate with employees using code names such as “Bonefish” and “Snapper;” requesting a money manager to attend a “money laundering meeting” under the presumed identity; and encourage both money managers to destroy documents and electronic media using shredders and hammers.
“The dollar value aside, I have not seen this pattern of greed or hiding and covering up my 25+ years as a special agent,” Jim Lee, head of the IRS Criminal Investigation Unit, told a press conference.
“We look forward to defending her against these charges,” Kathryn Keneally, counsel for Brockman, said in a statement to CNN Business. Keneally is a former Assistant Attorney General of the US Department of Justice Tax Division.
A spokesman for Reynolds & Reynolds said the allegations in the accusation focused on activities Brockman was doing “outside of his professional responsibilities with Reynolds & Reynolds,” according to a statement issued to CNN Business. “The company is not said to have done anything wrong, and we are confident in the integrity and strength of our business.”
The accusation also alleges that Brockman took steps such as asking employees to backdate records and use encrypted communications to hide the alleged scheme. Brockman is also suspected of fraudulently buying nearly $ 68 million of security software from his software company, while maintaining insider information about the company.
If convicted, Brockman faces “a significant period of incarceration,” authorities said, as well as the payment and disappearance of the criminal.
Smith, of Vista Equity Partners, accepted responsibility for his role in the alleged tax evasion schedule and agreed to a non-prosecution agreement, officials said. Vista Equity Partners declined to comment.
Officials said Smith, 57, hid money in offshore accounts in Belize and Nevis. Smith used his unsecured income to buy a vacation home in Sonoma, ski properties in the French Alps and to make charitable donations including maintaining a Colorado home for children in the city and wounded veteran, authorities said. As part of an agreement with the Department of Justice, Smith will pay $ 139 million in taxes and penalties, leave his $ 182 million protection claim in refund and pay interest, but avoid prosecution.
“It’s not too late to tell the truth. Smith committed serious crimes, but he also agreed to cooperate,” said U.S. Attorney David Anderson. “Smith’s agreement to cooperate put him on a path, far from complaining.”