Dan Horsky, 71, a citizen of the United States, the United Kingdom and Israel, pleaded guilty ON November 4, 2016 to his role in a financial fraud conspiracy involving a foreign bank account containing more than $200 million. As part of his plea agreement, Horsky paid a civil penalty of $100 million to the U.S. Treasury for failing to file and filing false Foreign Bank and Financial Accounts.
“You can’t hide from the IRS,” said U.S. Attorney Boente. “Horsky went to great lengths to hide assets in secret accounts overseas in order to avoid paying his share of taxes to the IRS.
Today’s plea shows that we will continue to prosecute those who engage in this criminal activity.
According to the statement of facts filed with the plea agreement, Horsky was employed for over 30 years as a professor of business administration at a university in New York. In approximately 1995, Horsky began investing in numerous start-up businesses through financial accounts at various offshore banks, including one bank in Zurich, Switzerland.
One of these start-up businesses was Company A. Horsky’s investments in Company A ultimately resulted in approximately $80 million in net proceeds from the sale of Company A’s stock. However, Horsky only disclosed and paid taxes on approximately $7 million. By 2008, Horsky’s account contained nearly $200 million. From 2008 through 2014, Horsky filed false individual income tax returns and failed to disclose his income from, beneficial interest in, and control over his Zurich-based bank accounts.
“Despite his extraordinary wealth, Mr. Horsky concealed funds offshore, failed to report substantial income, conspired to submit false expatriation documents to cover up his fraudulent scheme, and evaded paying his fair share of tax,” said Principal Deputy Assistant Attorney General Ciraolo.
“The Department and its partners within the IRS are receiving a tremendous amount of information from a wide variety of sources, and we are using that information to pursue and prosecute individuals like Mr. Horsky, who violate our nation’s tax laws.
Today’s guilty plea proves, once again, that taxpayers will pay a heavy price when they choose to secrete funds in foreign bank accounts and evade tax and reporting obligations.”
“Federal income tax compliance should be equally shared among all Americans,” said Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation. “Conspiring to defraud the government with an elaborate scheme to underreport taxable income is unlawful. Mr. Horsky’s plea today serves as an important reminder that IRS-CI is committed to bringing to justice those who shirk their federal income tax responsibilities.”
Horsky faces a maximum penalty of five years in prison when sentenced on Feb. 10, 2017. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
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People familiar with the matter identified Credit Suisse Group AG as the swiss bank who held these funds and ratted out Mr. Horsky.ReplyDelete