New report details decades of Brockman transactions leading to U.S. criminal tax charges

The U.S. authorities’s tax fraud case in opposition to former Reynolds and Reynolds Co. CEO Bob Brockman has hyperlinks to a lawsuit introduced by some former salesmen greater than two decades in the past, in accordance to a media report.

The salesmen claimed in a lawsuit that Brockman had not paid commissions and as an alternative diverted some quantity of prospects’ funds to an entity within the Cayman Islands, The Wall Street Journal reported Wednesday. That case was settled in 2001, in accordance to the newspaper.

But the lawsuit could have been the beginning of IRS consideration on Brockman, the newspaper reported.

Brockman, 79, was indicted in October and charged with federal tax evasion and wire fraud in what prosecutors say was a scheme lasting two decades to keep away from paying taxes on $2 billion in revenue. He has pleaded not responsible.

The case is pending in federal court docket in Houston after being transferred there in January from San Francisco, the place the charges initially had been filed.

A competency listening to to decide whether or not Brockman can help together with his protection has been scheduled for June 29. His attorneys have argued in court docket filings that Brockman has a analysis indicative of Parkinson’s illness or Lewy physique dementia that’s progressive and has affected his potential to course of and retain data.

Prosecutors contend {that a} competency listening to is warranted, however have stated Brockman’s actions — together with persevering with to lead Reynolds and Reynolds as its chairman and CEO till after he was charged — increase questions about the defense’s competency claims. The authorities additionally famous in court docket filings that Brockman’s docs all have ties to the Baylor College of Medicine in Texas, to which Brockman has given tens of tens of millions of {dollars}.

The Wall Street Journal interviewed former staff and relations of Brockman. His brother, Dave Brockman, informed the newspaper that his brother “went out to make something of himself” after rising up in Florida and that the 2 haven’t been in shut contact for years. Brockman would begin Universal Computer Systems, which merged with dealership administration system supplier Reynolds and Reynolds in 2006.

Brockman was described as intently concerned with the company he ran and hiring staff, in accordance to The Wall Street Journal.

He was identified to fireplace staff at random, a former govt, Bobby Tyson, informed the newspaper. Tyson informed the newspaper he remembered Brockman asking him, “When was the last time you shot somebody between the eyes?” which was a reference to such an motion. Tyson, who stated he admires Brockman, stated he had participated in a random firing, although reluctantly, in accordance to the newspaper.

The Wall Street Journal reported that Brockman’s attorneys didn’t reply to questions for the story. His attorneys didn’t instantly reply to an emailed message searching for remark Wednesday from Automotive News.

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