Tax cheat Robert F. Smith bought ranch, ski condos, nightclub with hidden money: report – New York Post | Vette Leader

Billionaire Robert F. Smith has put his girlfriend up in a Manhattan apartment and bought expensive homes in California, Colorado and France with untaxed income, according to a leaked court document offering a glimpse into the private equity honcho’s illicit spending .

Smith, 59, was embroiled in the largest tax bankruptcy in US history in 2020, but escaped prosecution by agreeing to testify against his business partner, former Reynolds & Reynolds CEO Robert Brockman, who was accused of Hiding $2 billion from the IRS. Brockman died earlier this month.

The Vista Equities chief — who, according to Forbes, is the richest black man in the country with a net worth of $8 billion — was fined $139 million for his admitted tax evasion and filed a series of court motions to seek evidence against to seal him in case.

Despite his efforts to keep details of his expenses secret, an affidavit by a Treasury Department special agent related to the case against Smith and Brockman’s accountant detailed how Smith hid money from Uncle Sam and spent it lavishly, according to The Daily Mail.

According to Forbes, Robert F. Smith is the richest black person in the United States with a net worth of $8 billion.
Bloomberg via Getty Images
Robert Smith and Robert Brockman seen in conversation.
Smith is seen speaking to his late business partner Robert Brockman, who has been accused of hiding $2 billion from the IRS.
Bloomberg via Getty Images
A copy of a June 3 affidavit written by a Treasury Department special agent.
A court document describes Smith’s allegedly lavish real estate spending with money hidden from the government.
USA v. Kepke IRS Affidavit

The affidavit includes information from a private investigator hired by Smith’s ex-wife Suzanne McFayden during their acrimonious divorce.

“Smith had his company pay for the rent of a luxury apartment in New York City and Smith’s then-girlfriend’s living expenses and treat them as business-related expenses,” Special Agent Trista Merz reportedly wrote in the 2018 affidavit.

According to the outlet, the written statement also listed properties the billionaire bought with offshore funds hidden from the government.

Smith bought Boulder River Ranch in Black Hawk, Colorado in lots between 2009 and 2013 with $12 million in untaxed funds and spent another $22 million on renovations, the British tabloid reported.

The 6,600-square-foot riverfront home sits on 300 acres and features a pool, tennis court and fishing lake, according to the article.

Smith also bought two ski condos and a restaurant/nightclub called The White Pearl in the French Alps city of Megève for more than $5 million and set them up with offshore accounts, the affidavit said.

He allegedly paid rent for her to his own company to try to throw him off track with tax investigations, his disgruntled ex reportedly told officials.

An aerial view of Smith's massive Colorado Boulder River ranch.
An aerial view of Smith’s massive Boulder River Ranch in Colorado.
Google Earth

Although McFayden claimed the properties as a business expense, he claimed he used them “as a weekend and holiday getaway where her kids were learning to ski,” according to the article.

Another $7.5 million in untaxed money was used to purchase and renovate a “second home” in Sonoma, California, the court document said.

According to the report, Smith also housed an unidentified girlfriend in a Manhattan apartment in 2013 through a business account. The affidavit doesn’t specify which apartment, but Smith owns several homes in the city, including a $59 million penthouse in Chelsea that he bought in 2018.

A ski condo in the French Alps bought by Smith.
A French ski condo Smith allegedly bought with untaxed funds.
Google Maps

In 2020, Smith also reportedly bought two homes in North Palm Beach, Florida for a total of $48 million.

Smith and his accountant Carlos Kepke set up foreign trusts in Nevis, Belize, Bermuda and the British Virgin Islands, Agent Merz reportedly claimed.

“Smith used this structure to hide from the IRS approximately $150 million in taxable income he earned from various Vista private equity funds,” the affidavit reads.

According to the article, as the government’s prosecution of Kepke continued, it was unclear what Brockman’s death would mean for the future of the IRS’s tax case against him.

Robert Smith delivers the commencement speech at Morehouse College.
In 2019, Smith vowed to pay off Morehouse College’s senior student loan debt.

Smith had been on a charitable gifting tour in the years prior to working with the FBI, notably pledging to pay back $34 million in student loans for Morehouse College’s Class of 2019.

He had also insinuated himself to Trump administration insiders, had once-daily phone calls with former Treasury Secretary Steve Mnuchin, and had reportedly joined Ivanka Trump’s White House Advisory Panel on Jobs.

Leave a Comment