Local hedge fund executives reportedly agree to massive tax settlement
Executives of the East Setauket-based hedge fund, Renaissance Technologies, have agreed to settle up to $7 billion in a tax dispute with the Internal Revenue Service, according to reports from The Wall Street Journal and The New York Times.
The long-running dispute reportedly arose following a Senate investigation indicating the firm used complex financial instruments as tax avoidance measures between 2005 and 2015. The agreement may be one of the largest in U.S. history.
Included in the settlement are founder and philanthropist James Simons, of East Setauket, and former co-managing director Robert Mercer, of Head of the Harbor. Both men have been political donors.
According to the Times, Simons will make a payment of $670 million in addition to his obligation to pay further sums along with Mercer and others.
Simons founded the hedge fund in 1982. He was a codebreaker in the 1960s and is a former chairman of Stony Brook University’s Department of Mathematics.
Simons stepped down from active involvement in Renaissance in 2010, while Mercer resigned as co-CEO at the end
TBR News Media was unable to obtain comment from Renaissance Technologies by press time.