Seggerman Pleads Guilty to Conspiracy in Tax Evasion Case

Henry Seggerman, accused with other family members of hiding from federal authorities millions of dollars in his father’s estate, pleaded guilty in Manhattan federal court to conspiracy and tax crimes.

The U.S. claimed Seggerman’s father, Harry G.A. Seggerman, a New York businessman who died in 2001, left a $24 million estate, more than half of which was held in undeclared Swiss accounts. Henry Seggerman, 60, is listed on the website of his father’s hedge fund management firm, International Investment Advisors LLC, as the chief investment officer.

Henry Seggerman pleaded guilty today to conspiracy and two counts related to the filing of false tax returns. He faces as long as 11 years in prison. Three of Seggerman’s siblings, Suzanne Seggerman, Yvonne Seggerman and Edmund Seggerman have previously pleaded guilty to conspiracy and tax crimes.

Their father was a pioneer in investing in Asia, according to a May 2001 story about his death in the New York Times

Henry Seggerman is expected to testify on behalf of the government in the trial of Michael Little, a lawyer who was one of the family’s advisers, Assistant U.S. Attorney Stanley Okula told U.S. Magistrate Judge James C. Francis at the plea hearing.

Making Amends

“I deeply regret my participation in these activities and intend to make amends for my conduct,” he said at the hearing.

Little, whose trial date hasn’t been set, was charged with participating in an 11-year conspiracy to defraud the U.S. Internal Revenue Service using Swiss bank accounts and sham mortgage transactions. He has pleaded not guilty.

A message left at the Seggerman’s firm wasn’t returned. Seggerman is free on a $100,000 bond. Under a plea deal, he agreed to pay a $600,000 in restitution at the time of his sentencing, which hasn’t been scheduled, according to prosecutors.

“Henry Seggerman and three of his siblings inherited and continued a family tax fraud scheme. Now, four members of this family stand convicted of tax crimes,” Manhattan U.S. Attorney Preet Bharara said in a statement. “We will continue to aggressively investigate and prosecute U.S. taxpayers, and those that assist them, in evading their obligations by hiding money in secret offshore accounts.”

The case is U.S. v. Seggerman, 13-cr-00174, U.S. District Court, Southern District of New York (Manhattan).

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