How do you hide $2 billion? (Apparently you don't)
Robert Brockman, the CEO of software company Reynolds and Reynolds Co., was charged with tax evasion, wire fraud, money laundering, and other offenses after it was discovered he hid $2 billion in capital gains income for decades through various offshore entities in Nevis1 and Bermuda. He also maintained secret bank accounts in Bermuda and Switzerland. This is the largest-ever tax charge against an individual in the United States.2
Initially, Brockman was cooperating with the investigation. But in December 2020, Brockman's attorneys announced that despite the fact that he was running a multibillion dollar software company up until November 2020, he is suffering from extreme dementia which prevents him from standing trial.3
They argue that his condition has weakened his intelligence to the point that he recently scored an 87 on an IQ test. They also allege that he suffers from hallucinations, and as evidence they recounted a story where Brockman saw an insect on the floor that no one else saw.
Prosecutors are skeptical. They note that the claims of dementia align with the timeline of the investigation, and the doctors he saw regarding the dementia diagnosis were part of Baylor College of Medicine (to which he has donated tens of millions of dollars). One of Brockman's associates told him about a Baylor doctor whom he described as "a strong barrier against an attack from the IRS."
The investigation into Brockman stemmed from allegations that he evaded taxes on the profits from investments in private-equity funds managed by Vista Equity Partners, billionaire Robert Smith's firm. Smith recently paid $139 million in back taxes to avoid prosecution for evading tax from 2005 through 2014.
1 It's next to Saint Kitts