AUSTIN (KXAN) — Earlier this year, hedge fund manager Justin Ryan Schmidt, who previously lived in Austin, was arrested and pleaded guilty to evading millions of dollars in federal taxes after concealing income and foreign bank accounts. This week, he was sentenced to serve 37 months in prison.
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Assistant Special Agent in Charge Troy Caldron of the IRS Criminal Investigation’s Texas Field Office said Schmidt had “lived a lavish lifestyle,” and lied about it to the federal government.
Caldron said the IRS investigation revealed that Schmidt owned properties in a ski resort town in Colorado, kept millions of dollars in foreign bank accounts unreported to the IRS, and held millions of dollars in properties and assets in the Cayman Islands.
“The honest paying taxpayers like you and I who work every day and pay our taxes so that we can have the roads and highways and things like that that be able to live in this wonderful country that we have, we’re the ones that are affected by it,” Caldron said. “While we pay what we owe, we have someone here who has almost $3 million of income tax that should have been paid over that was never paid.”…