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Former Business Professor Pays $100 Million Penalty in Tax Fraud Case

Technicians checking servers with laptop

Technicians checking servers with laptop

A 71 years old US, UK and Israeli citizen Dan Horsky pleaded guilty to his role in a financial fraud conspiracy involving a foreign bank account containing more than $200 million.  As part of his plea agreement, Horsky paid a civil penalty of $100 million to the U.S. Treasury for failing to file and filing false Foreign Bank and Financial Accounts.

According to the statement of facts filed with the plea agreement, Horsky was employed for over 30 years as a professor of business administration at a university in New York.  In approximately 1995, Horsky began investing in numerous start-up businesses through financial accounts at various offshore banks, including one bank in Zurich, Switzerland.  One of these start-up businesses was Company A.  Horsky’s investments in Company A ultimately resulted in approximately $80 million in net proceeds from the sale of Company A’s stock.  However, Horsky only disclosed and paid taxes on approximately $7 million.  By 2008, Horsky’s account contained nearly $200 million.  From 2008 through 2014, Horsky filed false individual income tax returns and failed to disclose his income from, beneficial interest in, and control over his Zurich-based bank accounts.

Horsky faces a maximum penalty of five years in prison when sentenced on Feb. 10, 2017.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Original Story at US Department of Justice.