This may be a part of a Voluntary Disclosure, which should prevent him from being federally prosecuted and from jail time?
“It is never too late to do the right thing,” said U.S. Attorney Anderson. “It is never too late to tell the truth. Smith committed serious crimes, but he also agreed to cooperate. Smith’s agreement to cooperate has put him on a path away from indictment.” Could this have been part of a Voluntary Disclosure, which would prevent him from being federally prosecuted and from jail time?
According to the agreement,
- Smith, a resident of Austin, Texas, formed the Excelsior Trust in Belize, and a shell company, Flash Holdings, in Nevis in 2000.
- Smith used third-parties to conceal his beneficial ownership and control of the Excelsior Trust and Flash Holdings.
- In reality, Smith controlled both offshore structures and made all substantive decisions regarding Flash Holdings’ operations, transactions, income, investments and assets.
- Smith used the Excelsior Trust to conceal his ultimate ownership and control over Flash Holdings.
- He further used Flash Holdings to hide his interest in private equity investments.
As a result of the overall scheme,
- Smith willfully did not report to the IRS over $200 million of partnership income.
- Smith also failed to report his ownership of his foreign bank accounts in BVI and Switzerland as required by law.
- Smith admits that, in 2005, he used approximately $2.5 million in untaxed funds to purchase and renovate a vacation home in Sonoma, California.
- In 2010, Smith again used untaxed funds to purchase two ski properties and a piece of commercial property in France.
- In 2011 and 2012, Smith used approximately $13 million of untaxed funds to build and make improvement to a residence in Colorado and to fund charitable activities at the property.
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