Despite arguments of incompetence from his defense attorneys, former Reynolds & Reynolds CEO Bob Brockman has been ordered to stand trial in a historic tax evasion case, the largest in U.S. history, according to a Bloomberg report. Brockman has been accused of evading taxes on $2.1 billion of income.
The 80-year-old Brockman has been under investigation by the United States Justice Department for five years, leading to his indictment on 39 counts of tax evasion and money laundering. He has been accused of hiding $2 billion in the Caribbean over a two-decade period.
In response to the charges, Brockman’s attorneys asserted that dementia, related to both Parkinson’s disease and Alzheimer’s disease, made him incapable of assisting in his own defense.
U.S. District Judge George C. Hanks Jr. ordered an eight-day competency hearing that saw defense witnesses present neuroimaging studies as evidence of moderate dementia and prosecution witnesses arguing that he was malingering and leading a double life, “presenting to select doctors as severely cognitively impaired, while simultaneously leading a normal, unimpaired life.”
In a strange twist, Automotive News reports that the proceedings included the testimony of “UK lawyer, Evatt Tamine, who oversaw Brockman’s offshore holdings for more than a decade. Tamine signed an immunity deal with U.S. prosecutors in 2018. Tamine testified he believed Brockman is innocent of tax evasion and money-laundering charges, while acknowledging he faces his own probes in Bermuda and Switzerland.”
Upon consideration of all of the evidence, on May 23, 2022, Hanks ruled that Brockman was competent, writing, “The court finds that despite Brockman’s recent health problems, the government has met its burden of establishing that Brockman is competent to stand trial.”
Hanks’s assessment continued, noting that the octogenarian has been “exaggerating his symptoms of severe dementia and his cognitive abilities are not as poor as reflected by his cognitive test results.”
The judge went on to note that, “Brockman is also an extremely intelligent person with both a high cognitive reserve and history of malingering for secondary gain. The government has introduced compelling evidence showing that Brockman exaggerated his cognitive symptoms when he was being examined by medical professionals in the past, and Brockman’s performance on validity tests – some of them administered by his own neuropsychological expert – indicates that he continues to exaggerate impairment.”
Prosecutors had presented an array of evidence that showed that he had continued to work at a high capacity for his automotive dealership management software company following his indictment.
Though prosecutors did not deny that Brockman had shown some signs of cognitive decline, they also presented testimony from Tommy Barras, who moved up from president and COO of the company to CEO after Brockman stepped down. Barras testified that Brockman had continued to play a significant role in all major decisions involving the company and that he had no doubts about the former CEO’s competence.
The case against Brockman revolves around an investment in Vista Equity Partners that he made in the year 2000. That investment grew to at least $1 billion on which he failed to pay taxes, instead establishing a complex charitable trust structure in Switzerland, Bermuda, and Nevis as a tax shelter. Brockman’s efforts at hiding his money included falsifying documents and encrypting communications. He is also accused of buying back his company’s debt illegally.
While Mr. Brockman’s case is unusual, it is important that every taxpayer remains in compliance with U.S. laws. If you need assistance, consult with your own tax professional today.
If you are interested in learning more about this already groundbreaking tax evasion trial, the case number is U.S. v. Brockman, 21-cr-09, U.S. District Court, Southern District of Texas (Houston).
About Rebekah Barton
Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.
Outside of work, Rebekah can be found doing yoga, shopping, watching the Indianapolis Colts, or spending time with her two young daughters. A lifelong Disney and Star Wars fan, she alternates between wishing she lived in Beast's castle or was making the Kessel Run in the Millennium Falcon.
