Court Pauses Bahama Trust Transfers Over $28 Million Tax Fight

A Florida federal court limited a family’s ability to transfer assets out of several trusts it holds in the Bahamas, as the government seeks to compel one member to repatriate assets over a $27.8 million tax debt.

The US District Court for the Southern District of Florida on Monday granted the Justice Department a preliminary injunction barring movement of funds out of the trusts connected to Burt Kroner, who incurred liabilities from 2005 to 2007 after he transferred cash to offshore trusts, where they remain.

• The government filed for a preliminary injunction in August, concerned that Kroner might be able ...