Civil Plaintiff
Hedge Fund Founder Pays $105M to Settle New York Tax Fraud Claim
Hedge fund founder Thomas Sandell on Tuesday paid a whopping $105 million to settle claims that he fraudulently evaded New York city and state taxes on more than $450 million on fees he earned, officials said.
The settlement — of which a whistleblower will receive more than $22 million in reward — is the largest recovery in New York state history under the False Claims Act.
That state law was amended more than a decade ago to allow claims related to purposefully evaded taxes.
The Sweden-born billionaire Sandell, who did not admit wrongdoing, tried to dodge his liability for tens of millions of dollars worth of taxes owed to the city and state for those fees earned in 2017 through his firm, Sandell Asset Management Corp., officials said.
