Tax cheat Robert F. Smith purchased ranch, ski condos, nightclub with hidden cash: report

0
66

Billionaire Robert F. Smith put his girlfriend up in a Manhattan condominium and acquired costly properties in California, Colorado and France with untaxed earnings, in response to a leaked court docket doc that provides a glimpse the non-public fairness honcho’s illicit spending.

Smith, 59, was ensnared within the largest tax bust in US historical past in 2020, however escaped fees by agreeing to testify towards his enterprise companion, former Reynolds & Reynolds CEO Robert Brockman, who was accused of hiding $2 billion from the IRS. Brockman died earlier this month.

The Vista Equities Chief — who’s the richest black man within the nation with a web value of $8 billion, in accordance to Forbes — was hit with $139 million in fines for his admitted tax evasion and filed a flurry of court docket motions to seal proof towards him within the case.

Regardless of his efforts to maintain particulars of his spending beneath wraps, a June affidavit from a Treasury Particular Agent linked to the case towards Smith and Brockman’s accountant laid out how Smith hid cash from Uncle Sam and spent it lavishly, in accordance to The Every day Mail.

Robert F. Smith is the richest black man within the US with a web wealth of $8 billion, in response to Forbes.
Bloomberg through Getty Pictures
Robert Smith and Robert Brockman seen talking.
Smith seen speaking along with his late enterprise companion Robert Brockman, who was accused of hiding $2 billion from the IRS.
Bloomberg through Getty Pictures
A copy of a June 3 affidavit written by a Treasury Special Agent.
A court docket doc element’s Smith’s alleged lavish actual property spending with cash hidden from the federal government.
US vs Kepke IRS Affidavit

The affidavit contains info from a personal investigator employed by Smith’s ex-wife Suzanne McFayden amid their bitter divorce.

“Smith had his enterprise pay for, and deal with as business-related bills, the rental of a luxurious New York Metropolis condominium and dwelling bills of Smith’s then-girlfriend,” Particular Agent Trista Merz reportedly wrote within the 2018 affidavit.

The written assertion additionally listed properties purchased by the billionaire utilizing offshore monies hidden from the federal government, in response to the outlet.

Smith purchased the Boulder River Ranch in Black Hawk, Colorado in parcels between 2009 and 2013 utilizing $12 million of untaxed funds and spent $22 million extra renovating it, the British tabloid reported.

The 6,600 sq. foot riverside house sits on 300 acres and boasts a pool, tennis court docket and fishing lake, in response to the article.

Smith additionally bought two ski condos and a restaurant/nightclub known as The White Pearl within the French Alps city of Megève for greater than $5 million and furnished them utilizing offshore accounts, the affidavit reportedly mentioned.

He allegedly paid lease on them to his personal firm to try to via tax investigators off his path, his disgruntled ex reportedly instructed officers.

An aerial view of Smith's massive Colorado Boulder River Ranch.
An aerial view of Smith’s huge Boulder River Ranch in Colorado.
Google Earth

Regardless of claiming the properties as a enterprise expense, McFayden claimed he used them “as a weekend and vacation getaway the place their kids realized ski,” in response to the article.

One other $7.5 million in untaxed cash went to purchase and renovate a “second house” in Sonoma, California, the court docket doc reportedly mentioned.

Smith additionally allegedly put an unidentified girlfriend up in a Manhattan condominium utilizing a enterprise account in 2013, in response to the report. The affidavit doesn’t specify what condominium, however Smith owns a number of properties within the metropolis together with a $59 million Chelsea penthouse that he purchased in 2018.

A French Alps ski condo purchased by Smith.
A French ski apartment bought by Smith, allegedly via untaxed funds.
Google Maps

In 2020, Smith reportedly additionally purchased two properties in North Palm Seaside, Florida for a mixed $48 million.

Smith and his accountant Carlos Kepke arrange international trusts in Nevis, Belize, Bermuda, and the British Virgin Islands, agent Merz reportedly alleged.

“Smith used this construction to hide from the IRS roughly $150 million of taxable earnings he earned from varied Vista Non-public Fairness Funds,” the affidavit mentioned.

As the federal government’s prosecution of Kepke continued, it was unclear what Brockman’s dying would imply for the way forward for the IRS’ tax case towards him, in response to the article.

Robert Smith delivers the commencement address at Morehouse College.
In 2019, Smith pledged to settle the coed mortgage money owed for the graduating class of Morehouse School.
AP

Smith had gone on a charitable gift-giving spree within the years previous to cooperating with the feds, most notably pledging to repay the $34 million value of pupil loans for Morehouse School’s Class of 2019.

He had additionally ingratiated himself with Trump administration insiders, at one level holding every day calls with former Treasury Secretary Steve Mnuchin, and becoming a member of Ivanka Trump’s White Home advisory board on jobs, in response to the report.


Supply hyperlink