Bob Brockman, who while chairman and CEO of Reynolds and Reynolds Co. was indicted on federal charges of tax evasion and wire fraud, no longer is at the helm of the dealership management system giant.
Brockman, 79, stepped down from both roles, the company said Friday, Nov. 6. Privately held Reynolds, of Dayton, Ohio, said Tommy Barras, who was promoted to president and COO, will take over immediately as CEO. The chairman role is vacant for now, a Reynolds spokesman said via email.
The change comes on the heels of a 39-count federal indictment against Brockman last month. Prosecutors allege Brockman created an elaborate offshore scheme over two decades to evade taxes on $2 billion in income. He also faces charges related to evidence tampering.
Brockman has pleaded not guilty to the charges and is free on a $1 million bond. A court appearance is scheduled for Thursday, Nov. 12, to review his bail conditions.
Brockman's lawyers did not immediately respond to a request for comment on the leadership change. Reynolds did not issue a statement from Brockman.
Brockman has significant health issues, including Parkinson's disease and a heart condition, and has faced two rounds of cancer, his lawyers said last month in a court hearing, according to a transcript of the proceeding. A federal prosecutor during that hearing said Brockman has received a salary of at least $1 million per month for years and has the means to flee prosecution.
Bloomberg reported Friday, Nov. 6, that Swiss prosecutors have frozen more than $1 billion contained in bank accounts belonging to Brockman.
Reynolds has not been accused of wrongdoing in the government's case.
Barras, 61, joined Reynolds in 1976, the company said. Before his June promotion, he was Reynolds' executive vice president of software development. In a statement released by Reynolds, Barras said he is "both humbled and excited by the opportunity to lead this company."
