California grand jury submits 39-count indictment against CEO of Dayton-based software company

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DAYTON, Ohio (WDTN) — A federal grand jury in San Francisco, Calif., returned a 39 count indictment charging Robert Brockman, CEO of Reynolds and Reynolds, with tax evasion, wire fraud, money laundering and other offenses.

Reynolds and Reynolds provides software and support for that software to car dealerships.

The charges stem from an alleged decades-long scheme to conceal approximately $2 billion in income from the IRS as well as a scheme to defraud investors in the software company’s debt securities.

“Today’s indictment reflects the Department of Justice’s commitment to finding and prosecuting the costliest and most sophisticated tax crimes in the United States,” said Principal Deputy Assistant Attorney General of he Tax Division Richard E. Zuckerman.

According to the indictment, Brockman used a web of offshore entities based in Bermuda and Nevis to hide income earned on his investments in private equity funds from the IRS. As part of the alleged scheme, Brockman directed untaxed capital gains income to secret bank accounts in Bermuda and Switzerland.

The indictment further alleges that to execute the fraud, between 1999 and 2019, Brockman took measures like backdating records and using encrypted communications and code words to communicate with a co-conspirator.

In addition to the tax offenses, the indictment alleges that, between 2008 and 2010, Brockman engaged in a fraudulent scheme to obtain approximately $67.8 million in the software company’s debt securities.

Brockman is scheduled to make his initial federal court appearance Thursday, Oct. 15.


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