Federal prosecutors' allegations that Reynolds and Reynolds Co. CEO Bob Brockman evaded taxes on $2 billion in income raise questions about whether the company he has led for more than a decade will have to navigate any fallout.
Reynolds is not accused of wrongdoing in a 39-count federal indictment unsealed this month that charges Brockman, 79, with tax evasion and wire fraud. Representatives for the Dayton, Ohio, dealership management system giant say company leaders remain focused on operating the business and supporting customers.
Yet the industry will be closely watching as the government's case unfolds against Brockman, who last week continued in his roles as Reynolds' chairman and chief executive. Key questions about Reynolds' future touch on how Brockman's leadership — perhaps even his ownership — of the company will evolve and how customers and competitors will react to the criminal case.