Dutch superstar DJ Tiësto's former attorney will appear in court this week over $28m concealed from the IRS using illegal offshore accounts.
Frank Butselaar was sentenced to 30 months in prison in February after being charged with helping wealthy clients conceal tens of millions of dollars from the IRS.
He led what US prosecutors in Manhattan called a “long-running, international fraud scheme” that benefited clients including DJs and fashion models.
Butselaar is serving the final six months of his sentence, having pleaded guilty in November last year to one count of aiding or assisting in the filing of a false or fraudulent tax return.
However, the IRS is now seeking the return of millions hidden on behalf of Tiësto. Business Insider reports that Butselaar’s defence team is planning to argue that Tiësto, not Butselaar, should pay the sum back.
The publication reports that prosecutors have not sought charges against Tiësto, real name Tijs Michiel Verwest, as he was not aware of his former lawyer’s activities.
Court documents reportedly indicate that the US District Attorney “capped” the amount Tiësto was required to pay back to the IRS at $9,467,085 — which he paid “voluntarily.” He has not been accused of any wrongdoing.
However, as prosecutors have called Butselaar back to court to demand he pay the remaining $19,250,845, his defence attorneys are reportedly planning to argue that he cannot afford the sum, and that Tiësto should pay instead.
In a statement to Business Insider, Butselaar said through a representative: “Mr Butselaar was paid an hourly rate to help his clients. If anyone is held liable to pay taxes on the millions of dollars in income it should be the artists who earned it, not Mr. Butselaar.”
In a court filing on 3 March, prosecutors said they were willing to lower the sum to $15.5 million as long as the funds are paid quickly, and without appeal.
Prosecutors wrote: “Butselaar's efforts to escape his restitution obligations are unpersuasive, unsupported by law, and contrary to the plea agreement that both he and his lawyers signed.”
The case will be put before a New York District Attorney judge on Thursday (13 March).
Additional reporting by Reuters
