Michael Gordon, the founder of hair-care brand Bumble and bumble, who was briefly arrested on charges of tax evasion late last week, reappeared on Monday with a determination to carry on.
This story first appeared in the November 20, 2012 issue of WWD. Subscribe Today.
A clearly exhausted Gordon had one statement to make about his stint in jail. “This too shall pass,” he told WWD Monday. He declined further comment on the matter. However, Gordon managed to summon the confidence to talk about the future, including the development of products inspired by his classic Bumble and bumble Surf Spray, a 2000 hit.
His legal troubles date back to September 2006, when Gordon received $29.6 million for selling his stake in Bumble and bumble to the Estée Lauder Cos. Inc. Internal Revenue Service agent Eric Nieves obtained the hairdresser’s U.S. Individual Income Tax Returns to find the sale price not reflected on the return, according to the complaint filed by IRS. Gordon reported that his adjusted gross income was $1,350,883, his taxable income was $1,124,844 and the state owed him a refund in the amount of $39,298.
According to the affidavit, Nieves obtained information from a confidential source that had personally known Gordon for the past seven years. According to the affidavit, which drew upon information from the informant, Gordon allegedly sought ways to hide the money from the IRS, including sending it overseas to avoid paying taxes on that income.