Dutch Tax Expert Sentenced for Fraud, May Face Restitution for Clients
Frank Butselaar, a Dutch tax attorney known as "Taxman to the Stars," was sentenced to 30 months in prison on Thursday for tax fraud. Prosecutors allege that Butselaar hid $100 million in income for his clients, including notable DJs Tiesto and Afrojack.
Butselaar, a former partner at Greenberg Traurig's Amsterdam office, is now facing a potential restitution demand of $19.25 million for allegedly saving the DJs significant taxes through offshore shelters.
Despite being named in the allegations, neither Tiesto nor Afrojack have faced charges. Prosecutors claim the DJs were unaware of Butselaar's fraudulent activities. Lawrence, Butselaar's attorney, maintains that his client should not be held responsible for the taxes, as he was not the taxpayer.
Tiesto, renowned as the "Godfather of EDM," and Afrojack have reportedly settled their tax issues with the IRS at a discounted rate. Both DJs are Dutch citizens and have not been charged in the tax-shelter scheme.
According to court documents, prosecutors allege that Butselaar diverted his clients' foreign earnings to shell corporations and trusts in Cyprus and Guernsey to conceal their income. Prosecutors further assert that Butselaar filed false tax returns for Afrojack and Tiesto during the years 2013 to 2017.
Butselaar initially contested his indictment, claiming that the foreign trusts and holding companies he established for his clients were not improper. However, he eventually accepted a plea deal, admitting to aiding in the filing of a false tax return.
Butselaar has served 21 months in pretrial detention and is expected to be released in approximately six months. Lawrence criticized the lack of charges against other individuals allegedly involved in the scheme, while Butselaar has taken sole responsibility.
US District Judge Cathy Seibel will determine the restitution amount within 90 days, considering the arguments presented by both the prosecution and the defense.