ALEXANDRIA, Va. — Dan Horsky, 71, a triple citizen of the United States, the United Kingdom, and Israel, has pleaded guilty to a sweeping financial fraud conspiracy involving a secret Zurich bank account that ballooned to nearly $200 million. The former New York business professor admitted to hiding the vast majority of his offshore wealth, dodging millions in federal taxes while filing false income returns for years.
As part of a binding plea agreement, Horsky paid a civil penalty of $100 million to the U.S. Treasury—the largest such penalty in recent memory—for failing to file required Foreign Bank and Financial Accounts (FBAR) and for submitting fraudulent reports. Between 2008 and 2014, he systematically lied to the IRS, concealing income, beneficial ownership, and control over his foreign accounts, all while living a life of quiet academic prestige.
Horsky’s illicit fortune began in 1995 when he started investing through offshore banks, including one in Zurich, into a series of start-ups. One of those ventures, Company A, generated approximately $80 million in net proceeds from stock sales. Shockingly, Horsky reported and paid taxes on only $7 million. By 2008, his offshore account held close to $200 million—funds he never disclosed to U.S. authorities.
“You can’t hide from the IRS,” said U.S. Attorney Dana J. Boente. “Horsky went to great lengths to hide assets in secret accounts overseas in order to avoid paying his share of taxes to the IRS. Today’s plea shows that we will continue to prosecute those who engage in this criminal activity.” Boente credited IRS-Criminal Investigation and federal prosecutors for cracking the case.
Caroline D. Ciraolo, Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division, condemned Horsky’s actions as a calculated betrayal of public trust. “Despite his extraordinary wealth, Mr. Horsky concealed funds offshore, failed to report substantial income, conspired to submit false expatriation documents to cover up his fraudulent scheme, and evaded paying his fair share of tax,” she said. “Today’s guilty plea proves, once again, that taxpayers will pay a heavy price when they choose to secrete funds in foreign bank accounts.”
Horsky faces a maximum penalty of five years in prison when sentenced on Feb. 10, 2017. Senior U.S. District Judge T.S. Ellis, III accepted the plea. The case was prosecuted by Assistant U.S. Attorney Mark Lytle, Senior Litigation Counsel Mark F. Daly, and Trial Attorney Robert J. Boudreau of the Tax Division, with support from IRS-CI’s Washington D.C. Field Office. The message is clear: offshore secrecy is no shield against federal justice.
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Key Facts
- State: Virginia
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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