Family Member of Barneys Heir Accuses Family of Evading $20 Million in New York Taxes Through False Palm Beach Residency Claim for Late Mother
In a shocking turn of events, Bob Pressman, the jilted heir to the Barneys luxury dynasty, has filed a lawsuit against his late mother Phyllis Pressman and siblings, accusing them of orchestrating an elaborate tax fraud scheme worth up to $50 million.
The lawsuit, filed in New York State Supreme Court, alleges that the family defrauded New York State out of $20 million in estate and income taxes by falsely claiming that Phyllis Pressman, who passed away in 2024, was a Florida resident, while she actually lived in New York for the last six years of her life.
According to the complaint, Phyllis lived in her oceanfront mansion in Southampton, NY, from around 2018 until her death. However, she was declared a Florida resident in the estate's legal documents, a move that allowed the family to avoid New York's higher estate taxes.
Evidence cited in the lawsuit includes prescriptions filled at a local Southampton pharmacy, regular use of the landline at the mansion, and the presence of aides at the New York residence.
The Pressman siblings, Gene, Elizabeth, and Nancy, are said to have orchestrated this scheme by moving Phyllis into hospice care in Florida only late in 2023 and transferring the Southampton home to an LLC to conceal the estate's true tax liability.
Bob Pressman was cut out of his mother's will after years of family squabbling, capped by his refusal to participate in the alleged scheme. He is now seeking up to $50 million in back taxes and penalties, and under the New York False Claims Act, he could be entitled to 30% of any recovery from the case.
As a whistleblower under the New York False Claims Act, Bob stands to gain a substantial percentage if successful. The largest individual settlement under this act was for $105 million, paid in 2021 by Swedish hedge fund manager Thomas Sandell.
The current status of the lawsuit indicates that it is active, but no final judgment or settlement has been reported as of August 2025.
Interestingly, Bob Pressman had been working on an as-yet unpublished manuscript for an incendiary tell-all book that blames his family for Barney's demise. The book also accuses his brother Eugene Pressman of running Barneys into the ground with lavish spending projects.
Meanwhile, some of Phyllis Pressman's jewelry and artwork are slated for auction this fall by Freeman's-Hindman. The 2.3-acre, oceanfront spread at 346 Meadow Ln. in Southampton that belonged to Phyllis Pressman is currently on the block for $38.5 million.
In a separate legal matter, a New York judge awarded Bob's sisters Elizabeth and Nancy $11.3 million in 2002 in a lawsuit against Bob.
This developing story will undoubtedly captivate the attention of many, as the outcome of the lawsuit could set a precedent in the realm of tax fraud and estate disputes.
- The developing lawsuit filed by Bob Pressman against his siblings alleges a tax fraud scheme in business and finance that involves the Barneys luxury dynasty, potentially worth up to $50 million.
- The scandal, unfolding in the general-news sector, suggests that Phyllis Pressman's family defrauded New York State out of $20 million in estate and income taxes by hiding her residency status to avoid New York's higher taxes.
- As the case progresses under the New York False Claims Act, Bob Pressman, acting as a whistleblower, stands to receive a substantial percentage of any recovery in the case – a claim that mirrors the largest individual settlement under this act, which was for $105 million in 2021.
