How did a Florida man afford 27 Ferraris and a yacht? A $22 million tax fraud
As some fully employed people found their Social Security contributions were '$0' for recent years, a Stuart man and his wife luxuriated in a 7,700-square-foot three-bedroom, eight-bathroom house with a small dock and cove.
The missing money and the house connect through Matthew Brown and his $22.4 million tax fraud.
Brown, 51, soon will be relocating from that home to federal prison after being sentenced in Fort Pierce federal court to 50 months of incarceration and two years of supervised release. He also was fined $200,000 and ordered to pay $22,401,585 in restitution.
Brown pleaded guilty to failure to account for and pay over trust fund tax and assisting in the filing of a false tax return, crimes he committed through Matthew Brown & Associates, which did business as Elite Payroll Solutions. Elite Payroll handled payroll functions, employee benefits and tax services for several businesses from Miami-Dade to St. Lucie counties.
Some of those functions included paying payroll taxes.
How the tax fraud worked
Starting in 2014, the Justice Department said, Brown worked a pretty simple tax scam on his business clients. He told them how much they owed in taxes, and they paid him the full amount. Then, he understated the employment tax obligation to the IRS. Brown kept the difference.
Brown's admission of facts says he did this to a Miami private security company in the business quarter that ended June 30, 2021. He understated the security company's tax by $150,000 in a false quarterly filing to the IRS. He did this to several companies over eight years or 32 quarters.
'On multiple occasions, the IRS sent Brown and the EPS clients notices that it had detected underreporting for a specific quarter,' his admission said. 'Brown sent correspondence to the IRS and to the EPS Clients claiming any underreporting was the result of an Elite Payroll error and offered to pay any balance and interest due for that quarter. Brown knew this to be false and did so to avoid further scrutiny from the IRS and EPS clients.'
Instead of paying the payroll taxes, Brown bought a home in 2016 for $1.2 million (current market value in county property records: $3.7 million), commercial properties, a Valhalla 55 Sport Yacht, a Falcon 50 jet, and a fleet of cars that included Porsches, Rolls-Royces, and 27 Ferraris.
Here's a list of companies included in Brown's restitution and the unpaid employment taxes that went into his pocket:
▪ Miami's Gruber Saks Construction, $695,118.
▪ Davis Brothers, LLC, $2,113,984
▪ Factory Direct Supply WPB, LLC, $1,992,692
▪ Miami's Haynes Security Services, $1,509,015
▪ Palm City's VM Iron Work and Structural Steel Corp., $648,811
And three companies partially-owned by Brown
▪ Palm City's Propane Services, Inc., $1,297,823
▪ AC Care Heat and Air, Inc., $382,315
▪ Matthew Brown & Associates, Inc., $13,761,827
An employee at one of Brown's companies sent a victim impact email to the court before Brown's sentencing:
'One day, a colleague urged me to check my Social Security records. To my shock, my SSA contributions for three years were listed as $0 — despite full-time employment. It took months of persistence during the COVID shutdown to have this corrected. Afterward, I encouraged others to review their records, and many found the same issue.'
This was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Michael Porter and Trial Attorney Andrew Ascencio.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
32 minutes ago
- Yahoo
I'm a boomer living on $4,996 monthly. My houseboat saves me money and keeps me young.
Cheryl Fellenz, 81, swapped her home for a houseboat in 2009 to cut expenses. Fellenz lives on $4,996 monthly from Social Security and a teacher's pension. She said the houseboat gives her close access to nature and a sense of adventure in retirement. This as-told-to essay is based on a conversation with Cheryl Fellenz, 81, a retiree who lives on a houseboat off the coast of southern Maryland. She is one of thousands of older Americans who have shared their financial, career, and retirement stories with Business Insider. This interview has been edited for length and clarity. The idea of living on a houseboat felt like serendipity. I retired at 51 from my teaching career as a reading specialist. I had never been a boater or a boat captain or anything, but one day in 2009, a couple of friends were in my living room talking about this funky Washington DC boat yard down M Street. My spirit was attracted to that. When I drove down by the water and saw those boats at the marinas, I was like "oh, yeah, I'm doing this." Soon after, I sold my house, paid off the mortgage, bought my houseboat in cash, and then started my adventure. It was right after the market crash, so I sold my house — which I had been living in for 15 years — at a loss, but I was able to buy the houseboat for roughly $84,000. I knew the decision to move would cut my living expenses and I no longer have a mortgage. Lucky for me, if you have a pension, you don't even have to think about a 401(k). I don't have any savings, but my Social Security and teacher's pension add up to $4,996 a month, which is comfortable for me to live on. I keep an accounting book and I write down all my expenses — the fee to dock my houseboat is $275 a month, then I need to afford groceries and utilities. Praise God, I'm in excellent health. If something happens, I put it on my credit card, then I pay it off. I am disciplined with that. I'm paying toward my next financial goal: to be totally debt free. Boats can have more expenses than houses sometimes. After I got settled here, I had to pay several thousand dollars to fix the roof, air conditioner, and electricity. I paid for those repairs with my credit cards, and I'm hoping to have it down to zero by the end of this year. Once that's done, I'll have an extra $2,000 a month of spending money. I live an alternative lifestyle. I don't have children and I'm not married. But I have my routine: I go to the gym, I fill up a few gallons of fresh water at a natural spring off Route 488, I cook on my hot plate or grill, and I run my errands. I also teach a few local children how to read. I don't charge the families anything, but it gives me a sense of purpose. Even though I'm at this later stage of my life, I still can say, "oh, I have something to do today." I don't feel lonely. In my early years, I was the ultimate party girl. I loved to go to bars, listen to music, and go dancing. Now that I'm a little older, I wind it down a bit. I talk to friends, I go to social events held by my boating association, and I go once a week to a nearby jazz club. I would tell anyone planning to retire: be open to new experiences. Cultivate your imagination. Ask yourself: "Gee, where would I want to live? What's important to me?" The houseboat has absolutely been an adventure for me. When I moved in all those years ago, the DC-area had a giant snowstorm. It was like a foot above my knees. I had to shovel the dock, about the length of a football field, but I felt so proud of myself. I felt so alive. I literally think living here keeps me young. I'm happy with how my life is and the people in it. From my childhood, I've always loved nature. I see eagles, ospreys, gray and blue herons, and little turtles on the boat everyday. This is my dream come true. Do you have a story to share? If so, reach out to this reporter at allisonkelly@ or via Signal at alliekelly.10 Read the original article on Business Insider
Time Business News
an hour ago
- Time Business News
How the U.S. Uses Foreign TINs to Track Citizens Living Abroad
VANCOUVER, BC — In 2025, American citizens living abroad are under closer financial surveillance than ever before. While many expats believe their move overseas shields them from the Internal Revenue Service (IRS), one critical detail ensures they remain visible: their foreign Tax Identification Numbers (TINs). These numbers, assigned by foreign governments for local tax purposes, are now the digital breadcrumbs used by the U.S. government to track, audit, and penalize American citizens, regardless of their location. Amicus International Consulting, a global leader in legal identity change, second citizenship services, and international compliance solutions, reveals how the U.S. uses foreign Taxpayer Identification Numbers (TINs) to track its citizens overseas. This press release explores the evolving role of FATCA, international banking agreements, and TIN-linked data in transnational enforcement. The Foreign TIN: What Is It and Why Does It Matter? A country's tax authority assigns a Tax Identification Number (TIN) to individuals and legal entities for reporting and taxation purposes. Examples include: NIF in Spain in Spain SIN in Canada in Canada CPF in Brazil in Brazil USt-IdNr. in Germany in Germany AFM in Greece When an American citizen opens a bank account, rents property, applies for a mortgage, or declares income in a foreign country, they are often assigned a local Taxpayer Identification Number (TIN). These foreign TINs are increasingly shared with the U.S. under global transparency agreements. FATCA: The Engine of U.S. Global Tax Surveillance The Foreign Account Tax Compliance Act (FATCA), enacted in 2010, remains the most powerful financial surveillance tool the U.S. government has ever created. FATCA requires all foreign financial institutions (FFIs) to: Identify account holders with U.S. citizenship or U.S. indicia Collect and report personal details, including foreign TINs Share account balances, transactions, and identifying data with the IRS More than 110 countries have signed Intergovernmental Agreements (IGAs) under the Foreign Account Tax Compliance Act (FATCA), making compliance mandatory. The result? Foreign TINs of American expats are now tied directly to IRS databases. How the IRS Uses Foreign TINs The IRS cross-references foreign TINs with U.S. tax records to: Confirm foreign income and assets are properly declared Detect undisclosed offshore accounts Enforce Foreign Bank Account Report (FBAR) compliance compliance Track dual citizens with undeclared foreign residency Audit Americans who claim the Foreign Earned Income Exclusion (FEIE) or Foreign Tax Credit (FTC) In essence, the foreign TIN acts as a fiscal tracer, providing the IRS with a second, non-U.S. data point to verify or challenge expatriate tax filings. Case Study: The U.S. Teacher in Germany In 2024, a U.S. citizen working at an international school in Berlin registered with German tax authorities and received an Identifikationsnummer (IdNr). She opened a German bank account, reported her local salary, and filed German taxes. Despite filing U.S. tax returns with the Foreign Earned Income Exclusion (FEIE), she failed to include her foreign Taxpayer Identification Number (TIN) or file an FBAR disclosing the German account. Under FATCA, her German bank automatically reported her ID number, account balance, and address to the IRS. Result: a $10,000 FBAR penalty and a triggered IRS audit for three years of filings. The Role of CRS in Supporting U.S. Surveillance Although the U.S. is not a direct participant in the OECD Common Reporting Standard (CRS), it benefits from overlapping data flows. Many CRS-participating countries also have FATCA IGAs, meaning dual compliance results in foreign TIN and account information being shared with the U.S., even indirectly. This is especially relevant for: Dual nationals using a foreign passport to open accounts using a foreign passport to open accounts Green card holders abroad who claim non-U.S. residency abroad who claim non-U.S. residency Expats who assume foreign income is out of the IRS's reach Foreign TINs submitted to local banks are now matched against U.S. records, enhancing IRS enforcement. TIN Matching and Biometric KYC in 2025 By 2025, most foreign financial institutions are expected to utilize biometric KYC tools in conjunction with TIN verification. When a U.S. citizen provides: A local TIN A U.S. passport or green card A U.S. phone number or address … the system triggers a compliance alert under the Foreign Account Tax Compliance Act (FATCA). These digital onboarding systems now: Automatically log foreign TINs with IRS-mandated data Connect biometric records to known U.S. tax filers Track dual usage of TINs and passports across accounts U.S. citizens living abroad are often unaware of this, mistakenly believing their 'foreign status' gives them privacy or exemption. It does not. Multi-TIN Dilemma: When Two Numbers Create Double Exposure U.S. citizens living abroad often hold: A U.S. SSN A foreign TIN in their country of residence Both numbers are now required in most tax and bank filings. However, improper or incomplete reporting can result in: Double taxation CRS/FATCA data mismatch alerts Frozen accounts or denied access to local services IRS audits due to 'undeclared residency' suspicion Amicus International specializes in TIN harmonization, helping clients legally reconcile and manage multi-TIN obligations across borders. Case Study: The Digital Nomad Flagged in Two Jurisdictions A dual U.S.-French citizen opened a freelance income account with a bank in Lisbon using a French passport and TIN. The bank flagged the account due to U.S. indicia (a U.S. mailing address), triggering FATCA compliance. The U.S. IRS received his foreign TIN, account data, and declared residency—none of which were disclosed on his U.S. tax filings. The IRS initiated an audit for unreported income and foreign accounts. Amicus intervened, assisted in amending tax returns, and coordinated filings under the IRS Streamlined Foreign Offshore Procedure to avoid criminal exposure. Penalties for Failing to Declare Foreign TINs The IRS has grown aggressive in enforcing reporting obligations. U.S. citizens who fail to declare accounts, foreign TINs, or foreign income face: $10,000+ FBAR penalties per account, per year per account, per year Foreign Account Compliance Act violations Civil and criminal fraud penalties Loss of eligibility for foreign income exclusions In rare cases, loss of passport under IRC § 7345 (Revocation of Passport in Case of Certain Tax Delinquencies) The burden is on the citizen, not the IRS, to ensure foreign TINs and accounts are properly declared. Amicus Solutions: TIN Strategy for American Expats Amicus International offers tailored solutions for U.S. citizens abroad who seek to protect themselves from: Regulatory overreach IRS audits and penalties Unwarranted data exposure TIN mismanagement or duplication Services include: Legal second citizenship that may allow renunciation of U.S. citizenship that may allow renunciation of U.S. citizenship TIN harmonization to align U.S. and foreign filings to align U.S. and foreign filings Multi-jurisdictional audit defence and voluntary disclosure navigation and voluntary disclosure navigation Cross-border estate and tax planning using compliant foreign structures using compliant foreign structures Secure identity transition services for whistleblowers or politically exposed individuals Amicus does not assist with tax evasion or illegal offshore structuring. All strategies comply with U.S. and international law. Can You Avoid FATCA Reporting by Refusing a Foreign TIN? No. FATCA compliance is built into the onboarding systems of most global banks. If you do not provide a valid local TIN: The bank may refuse to open your account The account may be frozen or closed You may be labelled 'recalcitrant' and reported anyway U.S. fines or enforcement may be applied regardless of your location TIN transparency is now a non-negotiable element of financial participation in the international system. Final Word: The TIN Tells the IRS Where You Are—Even If You Don't In 2025, foreign TINs will be how the U.S. IRS finds, profiles, and penalizes citizens abroad. The illusion of offshore privacy has evaporated. Every financial institution you deal with—from Dubai to Dublin—now collects, verifies, and shares your TIN if you're an American. But there are legal, strategic ways to navigate this new world: Restructure your legal residency Declare your foreign assets properly Consider second citizenship if appropriate Align your U.S. and foreign TINs with professional help Amicus International Consulting helps clients worldwide protect their identities, remain compliant, and preserve their financial freedom in the face of growing U.S. extraterritorial surveillance. Contact InformationPhone: +1 (604) 200-5402Email: info@ Website:
Yahoo
4 hours ago
- Yahoo
Growthpoint Properties (JSE:GRT) shareholders YoY returns are lagging the company's 298% one-year earnings growth
We believe investing is smart because history shows that stock markets go higher in the long term. But if when you choose to buy stocks, some of them will be below average performers. For example, the Growthpoint Properties Limited (JSE:GRT), share price is up over the last year, but its gain of 11% trails the market return. The longer term returns have not been as good, with the stock price only 1.1% higher than it was three years ago. Since the long term performance has been good but there's been a recent pullback of 3.2%, let's check if the fundamentals match the share price. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During the last year Growthpoint Properties grew its earnings per share (EPS) by 298%. It's fair to say that the share price gain of 11% did not keep pace with the EPS growth. Therefore, it seems the market isn't as excited about Growthpoint Properties as it was before. This could be an opportunity. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). We know that Growthpoint Properties has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Growthpoint Properties will grow revenue in the future. It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Growthpoint Properties the TSR over the last 1 year was 22%, which is better than the share price return mentioned above. This is largely a result of its dividend payments! Growthpoint Properties shareholders are up 22% for the year (even including dividends). Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it's actually better than the average return of 8% over half a decade This suggests the company might be improving over time. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Growthpoint Properties (of which 1 shouldn't be ignored!) you should know about. For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on South African exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
