WASHINGTON, July 27 -- The U.S. Department of Justice's Criminal Division issued the following news release:
A Cayman resident who renounced his U.S. citizenship was sentenced today to 37 months in prison for tax evasion.
According to court documents and statements made in court, Justin Ryan Schmidt, formerly of Austin, managed a hedge fund focused on cryptocurrency investments. Over a period of several years, Schmidt earned a total of at least $7 million from his hedge fund but did not report any of this income on his 2020, 2021 or 2022 tax returns. Instead, Schmidt falsely reported earning income of $5,000 or less during each of those years. At the same time, he held millions of dollars in foreign bank accounts that he failed to disclos...