Now according to Law360, the U.S. District Court ruled on June 9, 2022 Isac Schwarzbaum, a dual U.S.-German citizen, fighting nearly $18 million in tax liabilities for hiding his foreign bank accounts cannot wait for his appeal to be decided before repatriating his assets to a U.S. bank account.
While Isac Schwarzbaum argued that repatriation would force him to liquidate his securities and cause him to realize significant transaction costs and capital gains, U.S. District Judge Beth Bloom said the mere possibility of those costs is not enough to constitute the irreparable harm Schwarzbaum needs to prove to be granted a stay.
Schwarzbaum also failed to provide the court with an affidavit supporting the veracity of the costs he believed he would incur by transferring his overseas assets to a U.S. bank, Judge Bloom said in her order.
Schwarzbaum asked for a stay in April, but Judge Bloom said that not only did Schwarzbaum fail to show he would be irreparably harmed by moving his money to a U.S. bank, but also failed to show that the U.S. government wouldn't be harmed by it.
While Schwarzbaum argued a stay would be brief and did not risk assets being lost, the government countered that a stay without bond would leave it "exposed to a complete and irreparable loss," according to the order. The government also told the court that Schwarzbaum's foreign holdings have decreased by $12 million since 2019, which Schwarzbaum attributed to the economic effects of the pandemic.
Judge Bloom said she agreed with the government that granting a stay without bond would leave the U.S. exposed.
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