A professor at the University of Rochester, Dan Horsky pleaded guilty to conspiracy and had to pay a record $100 million penalty to the IRS for failing to disclose off-shore accounts.
Horsky amassed approximately $200 million by investing in start-up companies and held the funds in accounts in a bank in Zurich. He didn’t disclose the funds to the IRS, or pay the required taxes on them.
Owners of offshore accounts are required to file a Foreign Bank Account Report (FBAR) with the government. Failure to file an FBAR can result in a penalty of up to 50% of the offshore account balance. Horsky’s penalty is the largest FBAR penalty to date.
Horsky faces a possible prison sentence and additional monetary fines. His sentencing hearing is scheduled for this month.