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Robert Smith makes deal in exchange for informing on business partner, Austin company in disarray

Following disclosure last week that Austin billionaire Robert F. Smith had reached a $140 million tax evasion settlement, more information has emerged from federal authorities and other sources.
Smith is Chairman and CEO of Vista Equity Partners, a $58 billion private equity firm with 400 direct employees and thousands more working in its portfolio companies. Perched on top of Austin's Frost Bank Tower, Vista's Austin office was founded in 2011 and is one of five offices throughout the U.S.
Smith, 57, lives in Austin's Westlake area, overlooking Lake Austin. The son of two Colorado school teachers, his net worth is estimated by Forbes to be more than $5 billion. He is regarded as the country's wealthiest Black person.
Smith is cooperating with federal investigators in exchange for non-prosecution
Smith is assisting federal authorities in their investigation of Houston resident Robert Brockman, 79. Charged with hiding $2 billion in income over 20 years in the nation's largest-ever personal tax fraud case, the feds say Brockman filed false tax returns and concealed overseas cash.
Brockman was the original investor who funded Smith's creation of Vista.
At a Thursday press conference, at which Smith's behavior was called "egregious," the U.S. Attorney for the Northern District of California David Anderson announced Brockman's indictment and Smith's cooperation agreement. Anderson said that Smith will be responsible for the following:
- Providing complete and truthful information
- Continuing work with federal prosecutors
- Attending meetings and providing documents
- Testifying before a grand jury
Money in offshore accounts was used for Smith's extravagant personal real estate
A copy of Smith's signed Oct. 7 settlement letter with the government reveals that Smith routed untaxed gains through offshore partnerships and bank accounts in Belize, Nevis, the British Virgin Islands, the Cayman Islands and Switzerland.
Smith admitted to concealing more than $200 million in income and evading subsequent taxes during a 15-year period, from 2000 to 2015.
While much of the money was routed to Smith's charitable trust, the settlement letter states that substantial funds were withdrawn for personal use in real estate acquisitions and remodeling projects, including:
- A home in Sonoma County, California that he owned with his then-wife
- A Colorado ranch property that he used personally and at which he hosted events for disadvantaged youth and wounded war veterans
- Two ski chalets in the French Alps used by Smith and his family
- A European industrial property
Smith's settlement is larger than originally stated
According to documents signed by Smith, he has agreed to:
- Pay $139 million in taxes and penalties
- Abandon a $182 million tax refund claim
- Pay interest on taxes owed
Cloudy reports at Vista
Axios reports that Smith held a call with top Vista executives last week, in which he discussed his tax settlement and disclosed that his longtime billionaire associate, Vista co-founder and president Brian N. Sheth, would be leaving the company. Axios referred to a "breakdown in the two men's relationship."
Vista's situation is unclear as investors are alarmed and the SEC, according to Axios, is poised to investigate whether Smith will be allowed to continue to run the firm.
Authorities deny that Smith's connections were a factor
U.S. Attorney Anderson specifically denied, in response to a direct question, that Smith's charitable involvements and political connections were a factor in the decision not to prosecute him.
Smith famously repaid student loans last year for all graduates of Atlanta's Morehouse College. His list of philanthropic efforts is extensive, and in 2019 he was awarded the Carnegie Medal of Philanthropy.
During the investigation period, Smith had cultivated relationships with people close to President Donald Trump, including Treasury Secretary Steven Mnuchin and the president's daughter, Ivanka, according to various reports.
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Popular
Austin FC kept rival FC Dallas to a draw Saturday night as it pulled off a 2-2 comeback. (Austin FC/Twitter)
Despite a 2-0 deficit, there was a pot of gold for Austin FC after all as it celebrated its annual Pride Night with rainbows and a 2-2 comeback draw to FC Dallas Saturday night.
After three FC Dallas losses last season, the Dallas derby draw marks the first time Austin FC has tied against its Copa Texas rival. Austin continues to edge over FC Dallas as it sits at 3rd in the MLS West.
Here are the biggest takeaways from the match:
A somber start
¡Ya Basta! Enough! End Gun Violence. #uvaldestrong
— Los Verdes (@LosVerdesATX) June 26, 2022
📷 @arubiophotos pic.twitter.com/3PiVdTPtik
Decked out in colorful hues for LBGTQ+ Pride, Verde fans started the match on a somber note as they held up banners to take a stand against gun violence before the match.
As the national anthem began, fans held up banners with the names of each child that was killed in the Uvalde school shooting and a plea to "end gun violence."
The supporters' section was also dotted with Pride flags and a "Bans off Our Bodies" banner in protest of the Supreme Court's decision to overturn Roe v. Wade.
(Claire Partain/Austonia)
(Claire Partain/Austonia)
FC Dallas earns a 2-0 lead
Paul Arriola is there to put it away and put @FCDallas ahead! pic.twitter.com/Z4AMmM6lp3
— Major League Soccer (@MLS) June 26, 2022
That sober tone continued onto the pitch. With midfielder Daniel Pereira's absence due to a red card, the Verde and Black lost two goals to FC Dallas by the 70th minute of play.
FC Dallas played it sneaky for the first half of the match, giving Austin FC plenty of room to hold possession as it waited to strike on a Verde error. That mentality proved dangerous for Austin as Dallas' Paul Arriola took advantage of Brad Stuver's deflection to score the first goal of the night in the 57th minute of play.
Dallas struck once more as Brandon Servant pushed past the Verde line to score the second goal of the match.
#DTID double their lead!
— Major League Soccer (@MLS) June 26, 2022
The substitute Brandon Servania with a fine finish within five minutes of coming on. 💥 pic.twitter.com/IZm0YsPxG5
Austin FC strikes back
Sebastián Driussi pulls one back!#AustinFC are still in this one. 👀 pic.twitter.com/Yoi0x768jb
— Major League Soccer (@MLS) June 26, 2022
But energy quickly returned to Austin's favor thanks to Designated Player Sebastian Driussi, who scooted past several FC Dallas defenders alongside Moussa Djitte to snag an unlikely first goal for Austin.
A full Verde comeback
Late drama in this Texas Derby!@AustinFC ties it up, Danny Hoesen with the diving header. 😱 pic.twitter.com/Jk2f4fIEXG
— Major League Soccer (@MLS) June 26, 2022
Austin's subs proved deadly as momentum returned to the home team toward the end of the match. A well-placed cross from Nick Lima—and a diving header from a fresh-legged Danny Hoesen—helped the team secure the draw with a second Verde goal in the 84th minute of play.
Hoesen, who was Austin's first starting striker last season, has now scored two goals with the team after a yearlong injury stuck him on the bench.
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(Bob Daemmrich)
Hours following the U.S. Supreme Court's ruling to overturn Roe v. Wade, the landmark ruling that guaranteed a constitutional right to an abortion, on Friday, about 1,000 people gathered in Republic Square with signs calling for change.
The rally, organized by the group Rise Up 4 Abortion Rights Texas, started at the federal courthouse on Republic Square on Friday at 5 p.m. before the crowd marched to the Texas Capitol. More protests are expected to ensue over the weekend.
People showed up with all types of signs like Mindy Moffa holding up, "Keep your filthy laws off my silky drawers."
Austin joined cities across the country that saw protests for a women's right to an abortion after the ruling.
According to a recent UT poll, 78% of Texas voters support abortion access in most cases.
Sabrina Talghade and Sofia Pellegrini held up signs directed at Texas laws. A Texas trigger law will ban all abortions from the moment of fertilization, starting 30 days after the ruling. When state legislators passed the trigger law last summer, it also passed laws for more protection of firearms, including the right to open carry without a permit.
Lili Enthal of Austin yells as around 1,000 Texans marched to the Texas Capitol.
From the Texas Capitol, Zoe Webb lets her voice be heard against the Supreme Court ruling.
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