The musician, 46, whose real name is Earl Simmons, is accused of a failing to pay taxes due on his earnings as a recording artist, performer and actor from 2002 to 2005.
Simmons was arrested in July on 14 counts of tax fraud, including allegations he hid millions of dollars of income from the Internal Revenue Service (IRS) and evaded $1.7m (£1.32m, €1.43m) on earnings from his famous songs, concerts, and television appearances.
He pleaded not guilty in his first appearance in court in New York, and after a night in prison was released on a $500,000 bail.
Simmons was then confined to his suburban New York City home by US District Judge Jed Rakoff, who said he repeatedly violated bail conditions on tax fraud charges. The judge ordered him to wear an electronic bracelet and ask permission at least a week in advance if he wants to travel.
However, after failing multiple drug tests, Judge Rakoff decided to end the rapper’s house arrest as long as he enters rehab.
The case
Prosecutors say DMX moved hundreds of thousands of dollars in music royalty income into his managers’ bank accounts, letting them pay him in cash so he could hide it from the IRS.
During the period from 2010 to 2015, the documents allege Simmons earned over $2.3m but did not file a single personal income tax return.
Instead, “he orchestrated a scheme to evade payment of his outstanding tax liabilities, largely by maintaining a cash lifestyle, avoiding the use of a personal bank account, and using the bank accounts of nominees, including his business managers, to pay personal expenses.”
The papers also allege he took other steps to conceal his fortune, telling a bankruptcy court that his income was “unknown” for the years 2011 and 2012, and just $10,000 in 2013.
The rapper has had numerous stints in jail for offences including drug and firearm possession, reckless driving, animal cruelty, and failure to pay child support.
