Billionaire Robert F. Smith to settle $ 140 million federal tax evasion case

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Topline

Billionaire Robert F. Smith, founder of Vista Equity Partners and America’s richest black man, will settle a four-year federal tax crime investigation for $ 140 million, according to a report released Wednesday by Bloomberg.

Highlights

Smith would not be sued, but as part of the settlement the billionaire must admit wrongdoing and help with other ongoing federal tax investigations, according to Bloomberg.

The $ 140 million figure is believed to come from back taxes, penalties and interest, and could be made public as early as Thursday.

In August, it was reported that Smith was under investigation by the Department of Justice for failing to pay US taxes on approximately $ 200 million in assets that were transferred from the first private equity fund. from Vista to offshore entities.

The $ 200 million was part of a $ 1 billion investment by Robert Brockman, CEO of software firm Reynolds and Reynolds and someone who is connected to Smith through various offshore entities, trusts and foundations.

According to the August report, some of the funds were transferred to a charity supervised by Smith called Fund II Foundation.

Large number

$ 5.2 billion. This is Smith’s estimated net worth, according to Forbes, making him the 125th richest person in the United States. He founded Vista in 2000, which now has more than $ 50 billion in assets.

Tangent

Smith has been recognized for his charitable work. In 2017, he became the first black person to sign the Giving Pledge, committing half of his net worth to causes that support equal opportunity for black Americans as well as environmental protection. In 2019, during an opening speech at Morehouse College, Smith pledged to pay off the student debt of the entire class.

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