John McAfee, the founder of the antivirus software company is charged with tax evasion after he failed to report income made from cryptocurrencies, did consulting and, took up speaking engagements. He also sold the rights of his life story for a documentary.
McAfee charged with tax evasion and willful failure to file tax returns from 2014 to 2018
On Monday, a June indictment that charged McAfee with evading taxes and willfully failing to file tax returns was unsealed in the federal court in Memphis. His arrest was carried out in Spain, with extradition to the US still pending, said the US attorney’s office in a new statement.
Presently, it is unclear if McAfee has a lawyer to speak on his behalf. The indictment states that McAfee has failed to file tax returns from 2014 to 2018 even though he has received substantial income from various sources. Though, it does not claim that McAfee received income or had any connection with the antivirus firm having his name during that time, said prosecutors.
Assets like real estate property, vehicle, and yacht hidden from the Internet Revenue Service
McAfee directed his income into bank accounts and cryptocurrency exchange accounts in the name of others to evade taxes. He hid his assets from the Internet Revenue Service that include real estate property, a yacht, and a vehicle, which was in the name of others. The charges were announced after the US Securities and Exchange Commission disclosed that it had charged McAfee with tax evasion.
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It alleged that McAfee made over $23 million between 2017 and 2018 by using his fame to recommend seven cryptocurrency offerings, which allegedly turned out to be worthless. He failed to disclose that he was paid to recommend the same.
SEC seeks a permanent ban on McAfee after charges of tax evasion
The SEC is looking to charge him with a civil penalty to expel him of any alleged ill-gotten gains with interest. It also wants to impose a permanent ban on him so that he will not be able to work as an officer or director of any listed company or any company that reports to the SEC. The SEC has also charge Jimmy Watson, McAfee’s bodyguard with helping in the sale of digital currencies. Both McAfee and Watson have not responded publicly to any of these charges.
If convicted of the charges, McAfee faces 30 years in prison. In July 2019, he was released from detention in the Dominican Republic after he along with five others were suspected of traveling with premium quality weapons, ammunition, and military gear, on a yacht.