I’m not sure what to say at this point. Walt Anderson, bankroller of several emerging space companies (some of which I’ve worked for and with), has been arrested for tax evasion:

IRS Commissioner Mark Everson said the allegations mark the largest criminal tax case against an individual.

Anderson, 51, earned millions by dealing in telecommunications companies after the AT&T breakup and became a global figure about five years ago when he embarked on a mission to try to rescue the ailing Russian Mir space station.

I hadn’t talked to him since last June, at the first SS1 flight into space, in Mojave.

Without speaking to the merits of the case, it’s safe to say that this will put a severe crimp into the capability of the first dotcom millionaire who was putting his money where his mouth was to continue to support space entrepreneurs.

[Via NASA Watch]

[Update on Tuesday morning]

Here’s more from the New York Times:

The Justice Department said that Mr. Anderson was involved in starting long-distance telecommunications businesses as the industry was being deregulated, and that he realized in the early 1990’s that the merger of his first successful company, Mid-Atlantic Telecom, with another company would result in substantial taxable earnings.

To avoid paying those taxes, the department said, he formed an offshore corporation called Gold & Appel Transfer in the British Virgin Islands and hired a trust company to serve as Gold & Appel’s registered agent and sold director. Gold & Appel was owned by another British Virgin Islands company previously formed by Mr. Anderson, the department said.

Mr. Anderson structured his dealings so that he had complete, albeit hidden, control of the corporations, prosecutors said. They said he further obscured his holdings by forming another offshore corporation in Panama, transferring Gold & Appel shares to that entity and having the shares sent to a mail drop in Amsterdam that he had rented under an alias.

The indictment said Mr. Anderson concealed his illegal dealings from his accountants, repeatedly tried to thwart I.R.S. inquiries, sometimes used the alias “Mark Roth” and falsely proclaimed himself a citizen of the Dominican Republic when he opened accounts with a New Jersey bank.

Gold & Appel (prounounced “Golden Apple”) was the investment source for many of his investments, including Rotary Rocket, Mircorp, and others. I don’t know, but suspect that it also provided the seed funding and endowment for the FINDS fund.

Well, can’t have that money funding projects that could get us off the planet. Much better to sink it in that vast black hole known as the federal budget, of course.

[Update at 9:45 PM EST]

Here’s more (though for some unaccountable reason the NYT reporter consistently misspells Gold & Appel as “Gold and Appeal”):

Mr. Anderson has long attracted a certain level of public attention, especially when he tried to arrange a rescue of the Mir space station five years ago. He frequently flew in a private jet and made deals involving millions of dollars. At conferences on space travel he often spoke of his hatred of government…

…Gary Hudson of Redwood City, Calif., said that Mr. Anderson invested $30 million in his Rotary Rocket, the primary backing for a private rocket launching and recovery firm that ultimately failed.

“One condition of his investment was that we could not take any government money,” Mr. Hudson said in a telephone interview on Monday.

I guess that occasionally it’s possible to be a little too libertarian.

[Update at 11:20 AM EST]

Here’s one more, the longest piece on the story yet, from the WaPo.