Reynolds & Reynolds CEO Bob Brockman has been charged with tax evasion, wire fraud, money laundering, and other offences, according to a news release from The United States Department of Justice (DOJ).
Brockman was indicted by a federal grand jury in San Francisco, California on 39 counts. The charges against him are rooted in an alleged decades-long tax evasion and wire fraud scheme to allegedly conceal approximately $2 billion in income from the U.S. Internal Revenue Service (IRS), and obtain approximately $67.8 million from the company’s debt securities.
“As alleged, Mr. Brockman is responsible for carrying out an approximately two billion dollar tax evasion scheme,” said Jim Lee, Chief of IRS Criminal Investigation. “IRS Criminal Investigation aggressively pursues tax cheats domestically and abroad.”
According to the DOJ, Brockman used “a web of offshore entities” (allegedly using secret Swiss and Bermudian bank accounts) based in Bermuda and Nevis to hide income earned on his investments in private equity funds.
“The allegations made by the Department of Justice focus on activities Robert Brockman engaged in outside of his professional responsibilities with Reynolds & Reynolds,” said a company spokesperson, in response to an inquiry from Canadian auto dealer. “The Company is not alleged to have engaged in any wrongdoing, and we are confident in the integrity and strength of our business.”
According to the company the indictment will have no effect on its business or ability to continue to work with its customers.
The DOJ is looking at a period of between 1999 and 2019 for the tax offences, where Brockman allegedly backdated records and used encrypted communications and code words to communicate with a co-conspirator, among other things. The indictment also places the fraud schemes between 2008 and 2010.
Brockman has held the position of Chairman and CEO of Reynolds & Reynolds since October 2006. He attended his first federal court appearance on October 15.
