Italian prosecutor accuses Tom Barrack of $190M tax fraud

Los Angeles /
Jun.June 02, 2017 02:00 PM

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
Combined Properties Chairman Ronald Haft, AECOM Capital CEO Warren Wachsberger and Pendry West Hollywood
AECOM JV lands $500M loan on boutique hotel-condo
AECOM JV lands $500M loan on boutique hotel-condo
Renderings of the Little Tokyo Service Center (KoningEizenberg) 
$275M approved for LA affordable housing projects
$275M approved for LA affordable housing projects
Josh Zegen and rendering of 21555 Oxnard Street (iStock, Google Maps)
Madison Realty Capital provides $34M loan-on-loan for Warner Center redevelopment
Madison Realty Capital provides $34M loan-on-loan for Warner Center redevelopment
From left: Robert Zangrillo, Geoff Palmer, Tom Barrack and President Donald Trump (Getty, iStock)
Trump’s people claim Geoff Palmer and Tom Barrack backed Zangrillo pardon
Trump’s people claim Geoff Palmer and Tom Barrack backed Zangrillo pardon
Michael Jackson’s “Neverland Ranch” has found a buyer: Billionaire investor Ron Burkle (Getty, Redfin)
Ron Burkle buys Michael Jackson’s “Neverland Ranch” for $22M
Ron Burkle buys Michael Jackson’s “Neverland Ranch” for $22M
Brookfield CEO Brian Kingston and 725 South Figueroa Street (Google Maps)
Brookfield lands $305M refi for Ernst & Young Plaza in DTLA
Brookfield lands $305M refi for Ernst & Young Plaza in DTLA
Colony’s Tom Barrack,, One California Plaza, and Rising CEO Christopher Rising (Credit: TM/Bauer-Griffin/GC Images via Getty Images, Tiffany Rose/Getty Images)
Here’s what tenants pay at Colony Capital & Rising Realty’s One California Plaza
Here’s what tenants pay at Colony Capital & Rising Realty’s One California Plaza
Los Angeles apartments (Credit: iStock)
Expanded unemployment has kept California renters afloat. But that’s set to expire
Expanded unemployment has kept California renters afloat. But that’s set to expire
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...