Defendant: Robert Edward Cone
Banks: Royal Bank of Canada Jersey Islands)
Entities: Yes (Jomach Limited, a BVI entity)
High Balance: ? [See below]
FBAR Penalty: ? [See below]
High Balance: Unknown
Count of Plea: Tax perjury, Section 7206(1) with 3 year max sentence
Tax Loss: $282,691 (agreed as "relevant conduct" tax loss because it was a 2001 liability and the plea count of conviction was for 2006)
Restitution: $939,917 (contractual restitution for the year 2001, consisting of the tax, apparently the civil fraud penalty and tax on each).
5K1 Departure Possibility: No
Court: SD TX
Judge: Ewing Werlein (Wikipedia entry here)
Mr. Cone received compensation of $1,000,000 in 2001 which he directed into a foreign trust which deposited the money into Royal Bank of Canada's Jersey Islands branch. That bank account was held in the name of a BVI company. The money was thereafter wired into the U.S. for Mr. Cones benefit, directly or indirectly.
Mr. Cone pleaded guilty to tax obstruction with respect to the 2006 year. The obstruction to which he pled was failing to advise the return preparer about the foreign account and hence reporting a no answer to the Schedule B question. The admission is:
( 6) Between on or about October 16, 2006 and October 23, 2006, Cone signed and filed with the Internal Revenue Service a federal income tax return in which he falsely stated that he did not at any time during 2005 have an interest in or a signature or other authority over a financial account in a foreign country when he had, in fact, caused two transfers in the approximate amount of $5,000 each to be made from the Jomach Account to an account in the United States during that year. In violation of Title 26, United States Code Section 7212(a).
ADDENDUM 11/1/12: Because of an inquiry about relevant conduct in the plea agreement and at sentencing, I have posted a new blog entry on relevant conduct: Relevant Conduct in Tax Cases (11/1/12), here.