United States sues New Zealand couple for $3.6 million in willful FBAR penalties
United States v. James L. Barribeau. NO. 1:25-CV-03888. District Court for the District of Columbia
The Justice Department seeks over $3.6 million from James Barribeau and Catherine Solomon for failing to report multiple overseas bank accounts from 2005 to 2012, alleging willful FBAR violations.
Holding
The United States filed suit in the District of Columbia to collect unpaid civil penalties under 31 U.S.C. §5321(a)(5). The complaint alleges both defendants willfully failed to report their foreign bank accounts in New Zealand, Australia, South Africa, and the U.K.
Why It Matters
Reflects continued DOJ enforcement of long-running offshore account reporting cases.
Demonstrates the government’s willingness to pursue U.S. citizens living abroad for FBAR noncompliance.
Highlights the scale of accumulated penalties over eight years of unreported accounts.
Reinforces that prior FBAR filings can establish knowledge and support a willfulness finding.
Timeline
1977: Barribeau and Solomon marry in New York.
1984–1991: Couple resides in South Africa; later relocates to New Zealand.
2003: Both obtain New Zealand citizenship but retain U.S. citizenship.
2005–2012: Maintain numerous foreign bank and investment accounts exceeding $10,000 aggregate balance.
2014: First FBAR filed after years of non-filing.
Nov 2023: Treasury assesses $1.11 million in penalties against Barribeau and $2.52 million against Solomon.
Nov 2025: U.S. files complaint in D.C. federal court to collect.
Key Facts
Both defendants are U.S. citizens residing in Christchurch, New Zealand.
Each held individual and joint accounts at ANZ Bank, Kiwibank, Macquarie Private Wealth, Forsyth Barr, and others.
Aggregate balances exceeded $10,000 each year, triggering FBAR reporting.
Barribeau had previously filed an FBAR in 2001, evidencing awareness of the requirement.
Solomon’s accounts were largely joint; she shared accountants and financial advisors with Barribeau.
Statutory or Regulatory Framework
31 U.S.C. §5314 requires U.S. citizens and residents to report financial interests in foreign accounts.
31 C.F.R. §1010.350 and §1010.306 implement annual FBAR filing obligations, due June 30 for the prior year.
31 U.S.C. §5321(a)(5) authorizes civil penalties for non-willful and willful violations, with willful penalties up to the greater of $100,000 or 50 percent of the account balance.
31 U.S.C. §3717 governs interest and late-payment charges on unpaid penalties.
Arguments
Government argued:
Both defendants willfully failed to file required FBARs despite knowledge of the reporting rules.
Barribeau’s prior 2001 FBAR filing and professional background show awareness of obligations.
Solomon’s joint control of accounts and shared advisors make ignorance implausible.
Penalties were properly assessed and noticed; full payment remains outstanding.
Defendants (anticipated):
May assert non-willful conduct or reliance on foreign residency and dual citizenship.
Could challenge the penalty calculations or claim procedural defects in assessment or notice.
Forward-Looking Implications
Reinforces the government’s intent to collect FBAR penalties against U.S. citizens abroad.
Signals that old tax years remain within reach if penalties were timely assessed.
Serves as a warning that dual citizenship and long-term foreign residence do not insulate from FBAR enforcement.
May influence settlement strategies for similarly situated expatriate taxpayers facing legacy FBAR exposure.
Result
The United States seeks judgment for $1,110,397 against James Barribeau and $2,521,909 against Catherine Solomon, plus statutory interest and costs.
The Takeaway
U.S. citizens living overseas remain subject to FBAR reporting and civil penalties for willful non-compliance, even decades after moving abroad.
The government continues to pursue such cases aggressively, particularly where prior filings show awareness of the rules.
Citations
31 U.S.C. §§5314, 5321(a)(5), 3717 – Foreign account reporting and penalty provisions.
31 C.F.R. §§1010.306, 1010.350 – FBAR filing regulations.
28 U.S.C. §§1331, 1345, 1355 – Federal jurisdiction over civil enforcement actions.