Cryptocurrency Executive Challenges IRS Over Access to Financial Records

News | June 24, 2024 By:

On Monday, June 10, 2024, Rowland Marcus Andrade and ABTC Corp. filed a brief asking a Texas federal court to reconsider its denial of their request to quash four IRS summonses for their financial records. Andrade and his company argued that the IRS failed to properly notify them about the summonses as required by law.

The brief claimed that the court erred in May when it determined the motion to quash was moot since the records had already been provided to the IRS. Andrade and ABTC asserted that the summonses were unlawful, and they were prevented from meaningfully challenging them before the agency received the bank records from JPMorgan Chase and Bank of America. Citing a 1992 Supreme Court case, they asked the court to order the IRS to destroy or return any copies it still possesses.

Further, the brief argued the IRS’s conduct warranted punitive damages of at least $100,000 plus legal fees due to a “high degree of reprehensibility.” Andrade said he was only indirectly notified in July 2023 about a broad request for documents from JPMorgan dating back to May 2020. Since then, his lawyers have received delayed responses while seeking proof of prior notices from the IRS. The agency additionally issued two summonses to Bank of America in September 2023 despite being informed two months prior that Andrade did not receive proper notification.

Andrade remains embroiled in legal issues stemming from a 2020 SEC civil enforcement action accusing him of violating securities laws in an initial coin offering. He pled not guilty in that ongoing case and contends the IRS summonses are unlawful due to a failure to adhere to notification requirements under the Right to Financial Privacy Act.

Please contact BlockTribune for access to a copy of this filing.