Simon Guobadia Denies Federal Tax Charges, Cites Oil Industry Margins

Simon Guobadia is challenging a federal indictment that accuses him of underreporting millions of dollars in income. The entrepreneur faces two counts in U.S. District Court for the Northern District of Georgia for allegedly aiding in the preparation and filing of false tax returns. He has called the government's case grossly exaggerated, arguing that prosecutors misunderstand how his petroleum company operates.

Court documents filed on October 27 outline the specific discrepancies in his financial reporting. Prosecutors state that in March 2021, Guobadia reported zero dollars in taxable income while his company, Simcol Petroleum Limited, earned significantly more. By July of that same year, he reported $58,231 in taxable income despite the business listing nearly $31 million in gross sales. The indictment claims the total gross sales for Simcol Petroleum Limited exceeded $45 million during the period in question.

Guobadia, a former tax accountant and CPA, says he knows the weight of the charges but believes the Department of Justice made an error. He points to the nature of the oil industry to explain the gap between gross sales and taxable income. He noted that oil companies do not overstate the cost of goods sold or the federal taxes they collect and remit. He added that his deductions for these payments can be independently verified. He emphasized that anyone familiar with the sector knows profit margins are thin, which he says explains why high sales figures did not equal high profits.

The case adds a new layer to Guobadia's legal and personal troubles in Atlanta. He finalized his divorce from Porsha Williams in June 2025 after a contentious process. Williams had filed for divorce in February 2024, just 15 months after their November 2022 wedding. She secured their multimillion-dollar Atlanta mansion and a seven-figure settlement in the split.

Williams previously told PEOPLE that she divorced Guobadia due to issues with his immigration status and what she described as a pattern of dishonesty. She cited his detention by U.S. Immigration and Customs Enforcement and his subsequent deportation to Nigeria in 2025. Legal filings from the divorce noted that news reports of his alleged immigration fraud and threat of deportation affected her mental and emotional wellbeing. Her attorney argued that Guobadia failed to disclose his checkered immigration history and status to her during the marriage.

Guobadia offered a different account of the marriage's end. He maintained that the couple had no issues and that Williams was citing problems from his past. He stated that he has spent the better part of 35 years making up for those past circumstances. The federal tax charges remain pending, and his claims about his company's financial reporting have not yet been independently verified. An arrest warrant was issued for Guobadia, though it is unclear if he has been taken into custody.

The indictment follows a period where Guobadia could not legally re-enter the United States until further notice. His defense focuses on the technical aspects of tax law within the petroleum sector, contrasting with the narrative of deliberate concealment presented by federal prosecutors.