In a turn of events that spotlights the global tax evasion issue, Frank Butselaar, an international tax advisor, has entered a guilty plea to a charge of aiding the preparation of a fraudulent tax return. Butselaar’s decision to plead guilty came after seven days of potent trial testimony, which illustrated a complex scheme designed to hide income offshore for some very wealthy individuals, including world-known DJs and fashion models, according to information obtained by theDepartment of Justice.
The investigation exposed how Butselaar, who was a shareholder at the Amsterdam Office of a major U.S.-based international law firm, and his American accomplices generated offshore structures to help clients conceal earnings from U.S. tax authorities. These clients were not just any high rollers; they were celebrities in their respective fields, such as the DJs Tiesto, real name Tijs Verwest, and Afrojack, born Nick van de Wall. Fashion models Patricia van der Vliet and Daria Strokous were also named among Butselaar’s clientele. Damien Williams, theUnited States Attorney for the Southern District of New York, emphasized the diligence of his office, stating, Today s guilty plea, which comes after a rigorous investigation, demonstrates that this Office will stop at nothing to ensure that tax professionals who decide to cheat and lie are held to account for their misconduct.
The disclosed court documents revealed that the defendant, along with partners at a U.S.-based management firm referred to as Management Firm-1, filed U.S. tax returns for the clients and deliberately omitted their substantial offshore income. This deception reached a pinnacle when the said clients, specifically during the times they were U.S. tax residents, were led to believe that nothing substantive had changed in the ownership of their accumulated wealth. Despite the formalities that suggested otherwise, Butselaar alongside his collaborators allowed the clients to continue their financial activities as if they still owned their offshore entities. The span of these infractions covered several years with unreported income, exceeding $70 million.
What ultimately resulted in Butselaar’s admission of guilt was an overwhelming amount of evidence, including warnings from six professionals that the offshore income should rightfully be declared within U.S. tax filings. Ignoring these admonishments, Butselaar persisted in his misinformation campaign, ensnaring both his associates and his high-profile clients in a fiscal charade. His guilty plea specifically addresses his role in the sham 2013 tax return of Afrojack, for which he faces a maximum sentence of three years in prison, as decided by U.S. District Judge Cathy Seibel. The sentencing is set for February 13, 2025.
The case was propelled by commendable investigative exertion from the Internal Revenue Service-Criminal Investigation (IRS-CI) and the international collaborative efforts of the Joint Chiefs of Global Tax Enforcement. Assistance from Italy’s judicial enforcement agencies and Interpol-Rome was also acknowledged in the pursuit of global tax fraudsters. Assistant U.S. Attorneys Benjamin Klein, Shiva H. Logarajah, and David A. Markewitz are leading the prosecution efforts, aiming to cement precedence that financial manipulation of this scale and caliber will face stern justice.
Note: Thank you for visiting our website! We strive to keep you informed with the latest updates based on expected timelines, although please note that we are not affiliated with any official bodies. Our team is committed to ensuring accuracy and transparency in our reporting, verifying all information before publication. We aim to bring you reliable news, and if you have any questions or concerns about our content, feel free to reach out to us via email. We appreciate your trust and support!
Leave a Reply