In the Headlines
November 10, 2020

Attorney: Reynolds Likely Safe from Forfeiture in Case Against Ex-CEO

Dayton Daily News

Midwest White Collar Defense and Investigations Practice Leader Brian Hayes was cited in a Dayton Daily News article discussing the federal tax evasion case against former Reynolds & Reynolds CEO Bob Brockman and their potential effects on the company. Although Reynolds & Reynolds, an auto dealer software producer, was not charged with any wrongdoing in the 39-count federal indictment unsealed in October, it remains to be seen how the case will affect company leadership and how customers and competitors will react.

One question is whether the government could end up owning part of the company through forfeiture laws. Federal prosecutors filed two forfeiture allegations in their case against Brockman, and if he is convicted on those counts, he could be required to forfeit any property obtained from the alleged offenses. In addition, if this property cannot be recovered, the government can seek forfeiture of other property. Mr. Hayes explained that although "other property" could include ownership stakes in a company, the chances of the Reynolds & Reynolds itself being subject to forfeiture are low. 

"Criminal forfeiture is tied to the property of the defendant," he said. "So if the company is not a defendant in the criminal case, forfeiture could not be imposed against the company."

READ: Attorney: Reynolds Likely Safe from Forfeiture in Case Against Ex-CEO

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