`

Former Carmel stock broker pleads guilty to fraud

September 12, 2018

A former Carmel resident pleaded guilty Wednesday to evading taxes on more than $1.2 million in income related to the multimillion sale of a rare painting.

Brian Gimelson, 48, who lived in Carmel from 2012 to 2015, pleaded guilty in Indianapolis to two counts of attempting to evade or defeat a tax before U.S. District Judge Tanya Walton Pratt of the Southern District of Indiana.

Gimelson, who now lives in Lawrenceville, New Jersey, is scheduled to be sentenced Feb. 1 by Pratt.

According to the indictment, Gimelson worked as a stock broker and investment broker for nearly 20 years. In February 2012, he formed Green Moss Partners LLC as a personal business.

Court papers said Green Moss in October 2012 facilitated a $15 million purchase of a 400-plus-year-old painting called "David With the Head of Goliath," by Italian artist Michelangelo Merisi da Caravaggio.

The money came in a promissory note that was guaranteed by Southport Lane Management LLC of New York City.

On the same day, Southport acquired Green Moss' interest in the painting for $38.5 million in exchange for a secured note due in January 2018.

From October 2012 to October 2015, Southport made periodic payments to Green Moss totaling $2.8 million. Over that time, Green Moss paid the Carvaggio Trust $1.57 million—a difference of $1.23 million.

Investigators say Gimelson did not pay taxes on the $1.23 million.

 

ADVERTISEMENT

Recent Articles by IBJ Staff

Comments powered by Disqus