Bob Brockman, who faces federal charges of tax evasion and wire fraud, has stepped down as CEO and chairman of Reynolds and Reynolds Co., the company said Friday.
Tommy Barras, who in June was promoted to president and COO, will take over immediately as CEO of the privately held dealership management system giant, Reynolds said. Barras, 61, will keep the president and COO titles.
A chairman has not yet been named, a Reynolds spokesman said.
“I am both humbled and excited by the opportunity to lead this company,” Barras said in a news release. “I have the benefit of the most talented senior executive leadership team with decades of automotive experience to lean on. We also have talented associates who are passionate about the business. That’s an unbeatable combination and the future looks very bright.”
The company did not release a statement from Brockman.Attorneys for Brockman could not immediately be reached for comment Friday.
Brockman last month was indicted in what the federal government is calling the “largest-ever tax charge against an individual in the United States.” Prosecutors allege Brockman created an elaborate offshore scheme over two decades to evade taxes on $2 billion in income from private equity investments, including using business representatives to move money. He also faces charges of evidence tampering and destruction of evidence.
Brockman, 79, pleaded not guilty to the charges and is free on bail. A court appearance is scheduled for next week to review his bail conditions.
Brockman is dealing with significant health issues, including Parkinson’s disease and a heart condition, and has faced two rounds of cancer, his attorneys said in an Oct. 15 hearing to set conditions for his release, according to a transcript of the proceedings.
A federal prosecutor said during that hearing that Brockman has received a salary of at least $1 million per month for years and has the means to flee prosecution.
Reynolds and Reynolds, of Dayton, Ohio, has not been accused of wrongdoing in the government’s case. he charges against Brockman have raised questions about what the future may hold for the company, which is one of the two largest U.S. DMS providers.
This is the first CEO change since then-publicly traded Reynolds and Reynolds merged with Brockman’s Universal Computer Systems Inc. in 2006. Brockman became chairman and CEO of the merged company.
He is a self-taught computer programmer who founded UCS in 1970. Brockman has preferred to stay behind the scenes, including during his tenure at Reynolds.
