A film producer and an Australian accountant were indicted by a federal grand jury yesterday for crimes related to their roles in a multi-decade conspiracy to defraud the United States by concealing the movie producer’s income and assets offshore.
According to the indictment, Nigel Sinclair is a film producer who founded several successful movie production companies, and Anthony Stewart is an accountant in Australia. In 2000, Sinclair allegedly co-owned Intermedia, a film production company he co-founded. He allegedly held half of his Intermedia shares in the name of a Maltese nominee entity that he controlled. When the company was listed on a foreign stock exchange, Sinclair allegedly caused his shares held by the Maltese company to be sold for approximately $25 million. He and Stewart then conspired with others to conceal these proceeds by depositing them into nominee bank accounts in Switzerland. Over the years, Sinclair allegedly used these proceeds to fly on private jets, purchase an $800,000 guitar owned by a famous rock musician, fund his next production company and build himself an 8,000 square foot vacation home in the Jackson Hole area of Wyoming. Stewart and others allegedly used corporate entities and created fake documents to disguise the true ownership and source of the funds Sinclair used.
In 2004, one of Sinclair’s co-conspirators was allegedly arrested in Australia and his laptop seized. The laptop allegedly contained files related to Sinclair and other individuals’ offshore financial dealings. According to the indictment, this seizure was the impetus for a significant tax evasion investigation in Australia, code-named Project Wickenby. As the investigation progressed, concerned about a possible IRS inquiry as well, Sinclair, Stewart and their co-conspirators allegedly took steps to avoid detection by authorities including moving Sinclair’s assets into new nominees' names, destroying potentially incriminating documents by flushing them down toilets, talking in code and communicating on burner phones.
In 2015, Sinclair allegedly tried to use the IRS’ Streamlined Domestic Offshore Procedures which offered taxpayers with undisclosed foreign assets an opportunity to make timely disclosures to resolve non-compliance issues while limiting criminal exposure. Allegedly under penalties of perjury that their failure was non-willful could pay significantly reduced penalties if they certified accurately; however during disclosure Sinclair made several false statements about his foreign assets' value which led him not reporting those bank accounts on Reports of Foreign Bank Account (FBARs) filed with U.S Treasury Department for both 2016 & 2017 despite admitting having such account(s).
Lastly,in2020,Sinclaire encouraged one co-conspirator tell false narrative U.S.authorities part grand jury investigation
Sinclair caused tax loss IRS more than$5million
Sinclair &Stewart charged conspiracy defraud US.Sinclair also charged filing false tax returns,false FBARs obstruction justice.If convicted face maximum penalty five years prison conspiracy.Sinclair faces maximum penalty three years each filing false return charge,five years each false FBAR charge twenty years obstruction charge
Acting Deputy Assistant Attorney General Stuart M.Goldberg Justice Department Tax Division made announcement
IRS Criminal Investigation investigating case.Assistance provided Joint Chiefs Global Tax Enforcement(J5) bringing together taxing authorities Australia Canada Netherlands United Kingdom United States
Trial Attorneys Peter J.Anthony Erika V.Suhr Assistant Chief Matthew Kluge Tax Division prosecuting case.Former Trial Attorney Christopher M.Magnani assisted investigation
An indictment merely allegation.All defendants presumed innocent until proven guilty beyond reasonable doubt court law
---