A former Carmel resident who pleaded guilty to evading taxes on more than $1.2 million in income related to the multimillion sale of a rare painting was sentenced on Friday to 18 months in federal prison.
Brian Gimelson, 48, who lived in Carmel from 2012 to 2015 before moving to New Jersey, will be required to spend three years of supervised release after he gets out of prison.
U.S. District Judge Tanya Walton Pratt of the Southern District of Indiana also ordered Gimelson to pay $432,456 in restitution.
Brian Gimelson pleaded guilty in Indianapolis in September to two counts of attempting to evade or defeat a tax.
According to his 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.