A former Carmel resident pleaded guilty to two counts of attempting to evade or defeat a tax for fees he earned related to the sale of a famous Italian painting.
Brian Gimelson, a New Jersey resident who lived in Carmel from 2012 to 2013 and in Westfield from 2013 to 2015, signed a plea agreement Sept. 12 that outlines his tax evasion scheme.
Court documents state that Green Moss Partners, which was managed by Gimelson’s wife, according to its formation papers, was involved in October 2012 in the purchase and sale of 400-year-old painting, “David With the Head of Goliath,” by Italian artist Michelangelo Caravaggio.
Green Moss received more than $1.2 million as a fee for its role in the transaction, the documents state, but taxes were never paid.
“Brian Gimelson evaded the tax assessment of the income received from the Caravaggio painting transaction by creating Green Moss as his alter ego and having his wife serve as the nominee managing member of the company,” the plea agreement states.
It also states that Gimelson “maintained complete control over Green Moss and its assets” despite not being an authorized holder or user of the accounts. It states he instructed his wife to make frequent substantial cash withdrawals from Green Moss accounts, which he used to purchase collectibles, precious metals and other items.
Gimelson could face up to 10 years in prison, a $100,000 fine and restitution payments.