Oleg Tinkov, Tax Fraud, California 2019

Oleg Tinkov, the founder of a Russian bank, has been charged with tax fraud in California. Tinkov was arrested last week in London in connection with an indictment charging him with filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Tax Division, U.S. Attorney David L. Anderson for the Northern District of California, and Internal Revenue Service (IRS) Criminal Investigation, Special Agent in Charge Kareem Carter.

The indictment alleges that Tinkov, as the indirect majority shareholder of a branchless online bank, beneficially owned more than $1 billion worth of the bank’s shares after an initial public offering (IPO) on the London Stock Exchange in 2013. Three days after the IPO, Tinkov renounced his U.S. citizenship, a taxable event requiring him to report to the IRS the constructive sale of his worldwide assets, report the gain on the constructive sale of those assets to the IRS, and pay tax on such gain to the IRS.

However, the indictment charges that Tinkov filed a false 2013 tax return with the IRS that reported income of less than $206,000, and a false 2013 Initial and Annual Expatriation Statement reporting that his net worth was $300,000.

According to the indictment, if convicted, Tinkov faces a maximum sentence of three years in prison on each count. He also faces a period of supervised release, restitution, and monetary penalties.

An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.

The case is the result of an investigation by IRS–Criminal Investigation, with assistance from the Criminal Division’s Office of International Affairs of the Justice Department.

Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.

Oleg Tinkov, a Russian bank founder, faces serious charges of tax fraud in California. The indictment, unsealed on [September 26, 2019], alleges that Tinkov filed false tax returns, hiding his true income and net worth from the IRS. If convicted, he could face up to six years in prison and significant fines.