Billionaire pays IRS $52 million in back taxes screams the headline in this morning’s Orange County Register. Igor Olenicoff, a member of the Forbes 400 (the 400 wealthiest Americans) and owner of Olen Properties, used offshore bank accounts to hide income and assets from the IRS and other creditors; he accepted a plea agreement and will likely serve a few months at ClubFed. Forbes estimates that Mr. Olenicoff is worth $1.7 Billion.
Mr. Olenicoff’s story was at first a version of the true American dream. He came to the United States as a Russian refugee at age 15; his family had almost no assets. He built Olen Properties into a huge force in commercial and apartment properties; the company owns over 60 commercial properties in Orange County and over 11,000 apartments and many residential communities primarily in Las Vegas and Florida.
However, his plea agreement notes that he moved $346 million to overseas accounts from 1998 to 2004. (He will repatriate all those funds as part of his plea agreement.) Mr. Olenicoff had told Forbes that “…was actually owned by offshore companies in which he had no interest.”
Mr. Olenicoff pleaded guilty to one county of filing a false tax return. While he could receive up to three years at ClubFed based on his plea agreement he will likely spend just a short stay there.
However, Mr. Olenicoff’s tax troubles may continue. As Forbes notes, California is next in line. During his plea hearing, Mr. Olenicoff stated that he was a resident of California in 2002. The Franchise Tax Board will likely soon be knocking on Mr. Olenicoff’s door.
News Stories: Forbes, Orange County Register
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