Billionaire’s Illness May Delay U.S. Tax-Fraud Case Against Him

The biggest ever U.S. tax-fraud case may face a setback after indicted billionaire Robert Brockman was admitted to a Houston hospital following an unspecified medical event.

Brockman, 79, was hospitalized for five days in mid-March, at a time when he was submitting to neurological tests by the government, according to a court filing Wednesday. A federal judge in Houston had ordered Brockman to undergo neurological and psychiatric tests after his defense lawyers argued he is mentally incapacitated and unable to aid in his defense. Prosecutors dispute the claim.

Billionaire’s Illness May Delay U.S. Tax-Fraud Case Against Him

Brockman, the former chief executive of Reynolds & Reynolds, fell ill on March 14, two days after sitting for a positron emission tomography (PET) scan, the filing shows. He was taken to an emergency room and admitted to the neurosensory center.

The filing redacted the precise nature of his illness, but an attorney for Brockman asked a judge to extend the testing deadline by approximately 45 days. The court had previously given the parties until mid-August to file papers on Brockman’s competency.

Brockman was charged in October with using a web of Caribbean entities to hide $2 billion in income in what prosecutors described as the largest U.S. tax evasion case ever against an individual. The defendant has denied wrongdoing and is seeking to have the 39-count case against him dismissed.

©2021 Bloomberg L.P.

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