Celebrity Tax Attorney's $100M Offshore Scheme for DJs and Models

In the world of high finance and celebrity tax evasion, one name stands out: Frank Butselaar, a European tax advisor who allegedly helped his international DJ and model clientele hide over $100 million in income from U.S. tax authorities. Butselaar, a shareholder at a major U.S.-based international law firm, employed a complex array of illegal offshore tax vehicles and trust structures to help his clients avoid paying U.S. taxes.

Butselaar's scheme involved creating offshore entities that his clients, such as world-renowned DJs Tiesto and Afrojack, beneficially owned and effectively controlled. These entities were held by trusts established by the clients on Butselaar's advice. To conceal the income held within the offshore structures from the IRS, Butselaar and his co-conspirators created a fraudulent scheme using straw beneficiaries. This involved using intermediaries to hold the income, making it appear as if the clients did not have beneficial ownership. For certain fashion industry clients, Butselaar and his co-conspirators devised a scheme involving fraudulent transfers of the clients' overseas companies to family members, knowing that the clients would maintain beneficial ownership of the overseas companies and the income derived from them.

These strategies were effective in evading U.S. taxes for several years, with unreported income exceeding $70 million. However, the investigation exposed these offshore structures and trust arrangements, leading to Butselaar's guilty plea and admission of his role in the scheme. Butselaar's actions had a significant impact on the financial and legal standing of his clients, particularly the DJs and models involved. By failing to declare their offshore income, the clients were in violation of U.S. tax laws, which could result in substantial financial penalties and potential jail time.

The investigation into Butselaar's actions was led by the Internal Revenue Service-Criminal Investigation (IRS-CI) and the international collaborative efforts of the Joint Chiefs of Global Tax Enforcement. The case was also supported by Italy's judicial enforcement agencies and Interpol-Rome. 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.

In conclusion, Frank Butselaar's actions as a celebrity tax attorney had a significant impact on the financial and legal standing of his high-profile clients. By employing a complex array of illegal offshore tax vehicles and trust structures, he helped his clients hide millions of dollars in income from U.S. tax authorities. The investigation exposed these offshore structures and trust arrangements, leading to Butselaar's guilty plea and admission of his role in the scheme. The international collaboration between law enforcement agencies and the prosecution efforts aim to hold those responsible accountable for their misconduct.