TOPLINE
Billionaire investor and philanthropist Robert F. Smith, the richest Black man in America and founder of Vista Equity Partners, has been investigated for possible tax crimes, according to a Bloomberg study.
Robert F. Smith will provide the starting address during Morehouse College on May 19, 2019 … [+]
KEY FACTS
Federal authorities have reportedly spent four years investigating whether Smith failed to pay U.S. taxes on about $ 200 million in assets transferred from Vista’s first private equity fund through offshore entities, sources familiar with the situation said. Bloomberg.
Some of that money was later transferred to a charity led by Smith in the United States, Fund II Foundation, which was created to direct the assets of a reserve that was established during the fund to public purposes, according to its website.
Whether Smith was charged with a crime may ultimately depend on whether he was the beneficial owner of the entities in the Caribbean that received proceeds from the fund.
According to Bloomberg, it is possible that if the funds had always been intended for charity, Smith would not have been considered the “beneficial owner,” and by extension, she would not have been on the hook for U.S. taxes; Vista Equity Partners did not immediately return a request for comment.
Smith hopes to persuade the Justice Department to resolve the matter with a civil settlement instead of a criminal conviction that could result in a jail sentence and force him to be fired from Vista, which manages $ 65 billion in assets, the report says.
Smith has reportedly asked for linearity in exchange for collaborating on multiple investigations, including one related to Robert Brockman, who hosts projects with Smith that include offshore entities, trusts and foundations, Bloomberg said.
large number
$ 5.2 billion. That’s how much Smith is currently worth, according to Forbes.
key background
Smith is the founder of Vista Equity Partners, a private equity firm specializing in software and technology companies. Smith founded the company in 2000 after a stint at Goldman Sachs, where he first worked in the merger and acquisition department and eventually led business systems and storage, according to a 2018 report. Forbes profile.
tangens
Smith has extensively supported Black causes in his philanthropic efforts. Through Fund II Foundation, Smith has focused money on preserving African-American experiences and culture and protecting the environment. When Smith signed the Giving Pledge in 2017 and became the first Black tycoon to do so, he proposed spending half of his net weight on causes that include “equality of opportunity for African Americans” and ecological protection. support.
surprising fact
Bloomberg notes that when federal prosecutors finally decide to prosecute Smith or Brockman, their cases could be one of the most notable cases of billionaire tax evasion of decades. Ty Warner, owner of maker Beanie Babies, Ty Inc., escaped prison after pleading guilty in 2013 to evading at least $ 5.6 million in U.S. taxes through a secret account in Switzerland.
further reading
Billionaire Robert Smith Fighting US Criminal Tax Inquiry (Bloomberg)
Robert Smith’s way of repaying the loans of Morehouse graduates began with his own graduate speaker (Forbes)
‘Heartbreaking And Painful’: Billionaire Robert F. Smith discusses George Floyd’s Death In Staff Memo (Forbes)
Billionaire Robert Smith urges companies to take ‘action’ for departments (Forbes)
Court of Appeals decides Beanie Babies Billionaire Tax Evader Ty Warner will not go to jail (Forbes)
