Fort Worth, Texas (Aug. 1, 2002) -- Federal authorities in Fort Worth reportedly have filed a complaint to seize a property owned by a fugitive who owes back taxes and is accused of scamming $10 million in an investment sham.Sheikh Yakub Al-Sheikh Ibrahim is accused of swindling a New Zealand man out of $10 million in a high-yield investment plan, the Star-Telegram reported. Court records say Ibrahim earned millions in the past seven years and that he conducted this and other alleged scams while living in North Texas until last year, the report said.

Ibrahim reportedly failed to pay his property taxes for the home, purchased in 1997, and owes $12,684 in delinquent taxes and penalties.

Ibrahim was indicted by a federal grand jury in Dallas last month on charges of wire fraud, money laundering and income tax evasion, the Star-Telegram said. A federal agent's affidavit described Ibrahim's and his partners' business deals as a maze of shell accounts, brokerage and overseas accounts set up to move and split up funds. Ibrahim reportedly used the proceeds of those schemes for personal use, including the purchase of the Southlake, Texas residence.

Ibrahim also reportedly falsely represented himself as a member of the Saudi Arabian royal family and claimed to be heir to a multibillion-dollar fortune with an inheritance tied up in a family trust in Europe. According to the report, Ibrahim wrote a letter to the IRS in last year stating that he doesn't owe any taxes and denying any money-earning investments, according to the indictment.

"All I do is receive monies as gifts and loans from my family in another part of the world, and I do not have to work at a job nor do I have investments that make money," the letter reportedly said. "There are no 1099s or W2s for me in your possession because I obviously am no one's employee or agent." That letter earned him another charge of making false statements to the IRS.

-- Electronic Accountant Newswire staff

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access