BROCKMAN CHARGED

Houston billionaire charged in largest tax fraud case in U.S. history

The feds have charged Robert Brockman with the largest-ever fraud case in history. Photo viaBrockman Foundation

Federal prosecutors charged Houston-area billionaire Robert Brockman on Thursday, October 15 with a $2 billion tax fraud scheme in what they say is the largest such case against an American.

Department of Justice officials said at a news conference in San Francisco that Brockman, 79, hid the money over 20 years through complicated schemes including filing false returns and setting up secret accounts all over the world to hide and launder money. They also charged him with investor fraud.

Brockman is CEO of Reynolds and Reynolds Co. of Dayton, Ohio.

Prosecutors also announced that Robert Smith, founder and chairman of investment firm Vista Equity Partners, will cooperate in the investigation and pay $139 million to settle a tax probe.

"Complexity will not hide crime from law enforcement. Sophistication is not a defense to federal criminal charges," said David L. Anderson, U.S. attorney for the Northern District of California. "We will not hesitate to prosecute the smartest guys in the room," he said.

The indictment was unsealed Thursday and Brockman is scheduled to make an appearance in San Francisco.

A spokeswoman for Reynolds and Reynolds told the New York Times that the company "is not alleged to have engaged in any wrongdoing, and we are confident in the integrity and strength of our business," and noted that Brockman's actions occurred "outside of his professional responsibilities."

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Building Houston

 
 

A new report finds that energy shortages could be coming this summer for the majority of North America. Photo via Getty Images

The North American Electric Reliability Council issued a statement in its 2023 Summer Reliability Assessment earlier this month warning that energy shortages could be coming this summer for two-thirds of North America if temperatures spike higher than normal.

“Increased, rapid deployment of wind, solar and batteries have made a positive impact,” Mark Olson, NERC’s manager of reliability assessments, says in a news release. “However, generator retirements continue to increase the risks associated with extreme summer temperatures, which factors into potential supply shortages in the western two-thirds of North America if summer temperatures spike.”

For Texans, the combined risk of drought and higher than normal temperatures could stress ERCOT system resources, especially in a case of reduced wind. But before there’s a mad rush on generators, keep in mind, electricity consumers can take simple actions to minimize the possibility of widespread shortfalls.

Electricity demand begins rising daily around 2 pm in the summer and peaks in the final hours of daylight. These hours are generally not only the warmest hours of the day, but also the busiest. People return from work to their homes, crank down the air conditioner, turn on TVs, run a load of wash, and prepare meals using multiple electric-powered appliances.

In light of NERC's findings, Americans are recommended to take s one or two small steps to avoid unnecessary stress on the grid in the hours after coming home from work, we can prevent energy shortfalls. Modify routines now to get into the habit of running the dishwasher overnight, using the washer and dryer before noon or after 8 pm and pulling the shades down in the bright afternoon hours of the day. Delaying powering up devices – including EVs – until after dark and turning off and unplug items to avoid sapping electricity when items are not in use is also recommended, in addition to turning up thermostats a couple of degrees.

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