Italian prosecutor accuses Tom Barrack of $190M tax fraud

Allegation is over the sale of luxury Sardinian properties to Qatar Holding

TRD LOS ANGELES /
Jun.June 02, 2017 02:00 PM
Tom Barrack (Getty Images)

An Italian prosecutor has accused billionaire investor Tom Barrack of conspiring to evade $190 million in taxes when he sold several luxury properties in Sardinia.

Barrack, chairman of L.A.-based Colony NorthStar who also led President Trump’s inaugural committee, denied the allegations this week.

The prosecutor filed a report earlier this month saying the real estate investor led the tax scheme, Bloomberg reported.

Neither Barrack nor the 32 other individuals and companies named by the prosecutor have been charged with any crime. The filing marks the final stage before the prosecutor can request any formal indictments, according to Bloomberg.

The investigation centers around Colony’s sale of four hotels, a golf course, a marina and some undeveloped land on Sardinia’s Costa Smeralda to Qatar Holding LLC, the investment arm of the country’s sovereign-wealth fund.

The prosecutor alleges Barrack and others used a Luxembourg company to artificially load the Sardinia firm with debt to reduce taxes due from the 2012 transaction.

Barrack and Colony Capital’s attorney Daniel Petrocelli of O’Melveny & Myers said the investment firm Colony used for the sale paid all taxes owed under Luxembourg and European Union law. [Bloomberg]Subrina Hudson


Related Articles

arrow_forward_ios
2201 Rosecrans Ave in El Segundo

Continental snags $55M refi on El Segundo office portfolio

From left: Gavin Newsom and David Chiu (Credit: Getty Images and iStock)

Will rent control dent the multifamily market? Lenders, investors weigh in

From left: Jose Huizar, Huang Wei, Mohamed Hadid, Robert Herscu, Raymond Chan, and Arman Gabay, with Los Angeles City Hall (Credit: iStock and Getty Images)

Real estate’s role in LA corruption scandals

From left: Governor Gavin Newsom, Assemblymember David Chiu, Senator Holly Mitchell, and Senator Nancy Skinner (Credit: Getty Images)

Here are the key housing and rent control bills state lawmakers are debating

From left: Colony Capital's Tom Barrack, 8250 Milliken Avenue and Lincoln Property Co.'s David Binswanger (Credit: Getty Images, Google Maps)

Tom Barrack’s Colony Capital looks to part with $5B portfolio amid other massive industrial deals

East LA Community Corporation President Isela Gracian, CIT Bank President Robert Rubino and the two projects

East LA Community Corp. lands $55M in loans for affordable housing projects

Acres Capital CEO Mark Fogel with a rendering of project

Chateau Group scores $44M bridge loan to build Marriott-branded hotel in Arcadia

Colony Capital's Thomas Barrack

Tom Barrack’s Colony Capital snags $1.7B refi on healthcare properties

arrow_forward_ios