Tax Advisor Admits Role in Concealing $70 Million in Offshore Income for Celebrity Clients
A Dutch tax advisor has pled guilty to assisting in a fraudulent tax scheme that concealed over $70 million in income for a roster of high-profile clients. This case exposes the lengths to which some advisors and clients go to avoid paying their fair share. The guilty plea marks a significant victory for the U.S. government in its crackdown on offshore tax evasion.
The High-Profile Clientele
The advisor catered to an exclusive list of clients, including:
- DJ Tiësto (Tijs Verwest): A globally recognized electronic music DJ and producer.
- DJ Afrojack (Nick van de Wall): Another celebrated DJ and music producer.
- Patricia van der Vliet: A renowned fashion model.
- Daria Strokous: A supermodel and actress with international acclaim.
These individuals, while successful in their fields, became entangled in fraudulent activities orchestrated by the advisor. The scheme primarily targeted their substantial earnings in the U.S. and abroad.
How the Fraud Worked
The advisor and his collaborators at a U.S.-based management firm created complex offshore structures to hide their clients’ income. These structures used nominee owners to falsely claim ownership of offshore accounts. These nominees, often family members living outside the United States, made it appear that the income didn’t belong to the clients.
However, the reality was different. The clients retained full control over their offshore accounts. They accessed the funds freely and directed how the money was used. Despite the paper trail suggesting otherwise, the income rightfully belonged to the clients and should have been reported on U.S. tax returns.
The fraudulent omissions exceeded $70 million in total unreported income.
Ignoring Warnings
The advisor didn’t act in ignorance. Over the years, six separate professionals—including CPAs and U.S. tax attorneys—warned him that the income being concealed offshore was reportable to the IRS. Despite these clear warnings, the advisor actively worked with his co-conspirators to hide the truth.
He misled his clients, concealed crucial information, and continued to file false returns. His deliberate actions ensured that millions of dollars escaped taxation, depriving the U.S. government of substantial revenue.
Legal Consequences
The advisor pled guilty to aiding in the filing of a fraudulent tax return for DJ Afrojack’s 2013 taxes. This charge carries a maximum sentence of three years in prison.
Sentencing is set for February 13, 2025, by U.S. District Judge Cathy Seibel. While the statutory maximum sentence is three years, the judge will consider various factors, including the extent of the fraud and the advisor’s role in the scheme.
Broader Implications
This case underscores the risks of offshore tax evasion. High-profile individuals often rely on trusted advisors to handle their financial affairs. However, unethical advisors can lead their clients into illegal territory, resulting in severe consequences for all parties involved.
Tax professionals are reminded to adhere to ethical standards and prioritize compliance over profit. Clients should also ensure their advisors operate transparently and within the law.
Conclusion
The guilty plea of this advisor sends a strong message: No one is above the law, and the U.S. government remains vigilant in pursuing tax evasion cases. Taxpayers and advisors alike should view this case as a cautionary tale, emphasizing the importance of honesty and compliance in financial matters.
With sentencing just months away, this high-profile case serves as a stark reminder of the consequences of fraudulent tax schemes.
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