A federal grand jury has indicted a film producer and his accountant for concealing millions of dollars in earnings.
The prosecution alleged that film producer Nigel Sinclair and his accountant, Anthony Stewart, did not declare earnings to the IRS. These earnings allegedly cost the IRS $5m in earnings taxes.
IRS Criminal Investigation is investigating the case, with assistance from the Joint Chiefs of Global Tax Enforcement (J5), which is a concentrated effort by the tax authorities of Australia, Canada, the Netherlands, the United Kingdom, and the United States
Film producer and accountant gain the ire of the IRS
In 2000, Sinclair, a well-known film producer, owned Intermedia, but half of the shares in the company were held as a Maltese nominee entity that he also controlled. The company would eventually be listed on the foreign stock exchange, and Sinclair would sell the Maltese assets for $25m.
The Justice Department stated, “He (Sinclair) and Stewart then conspired with others to conceal these proceeds by depositing them into nominee bank accounts in Switzerland. Over the years, Sinclair allegedly used these proceeds to fly on private jets, purchase an $800,000 guitar owned by a famous rock musician, fund his next production company, and build himself an 8,000 square-foot vacation home in the Jackson Hole area of Wyoming.”
The Justice Department report alleges that Sinclair and Stweart fabricated information and sensitive documents to conceal their actions.
Both men have been charged with conspiracy to defraud the United States. Sinclair was individually charged with filing false tax returns, false FBARs, and obstruction of justice.
Both men face a maximum penalty of five years in prison for conspiracy. Sinclair faces a possible maximum penalty of three years in prison for each filing of a false tax return, a maximum penalty of five years in prison for each false FBAR charge, and a maximum penalty of 20 years in prison for the obstruction charge.
Image: Brian Morgan.
