UBS executive Raoul Weil was indicted by a federal grand jury on November 6 for conspiring to defraud the U.S. from 2002 to 2007, earning $200 million in annual revenue for the bank while helping thousands of wealthy Americans evade an estimated $300 million a year in US taxes by hiding their assets from the Internal Revenue Service. Weil faces up to five years and $250,000 in fines--a piddling sanction for such a serious allegation, especially since the Swiss do not tend to extradite their citizens to face criminal charges abroad. The case is U.S. v. Weil, 08-60322, U.S. District Court for the Southern District of Florida. The Department of Justice press release is available here, and indictment is available on BNA at this link.
This is not a case of a bank inadvertently assisting with tax evasion. The Times article (see below) notes that the Times reviewed letters making it clear that senior executives knew at least three years ago about the problem. Furthermore, the bank apparently actively marketed its comparative advantages in tax evasion services, claiming "that UBS had 'better lobbying possibilities in the United States' and 'would not be pressured' to disclose clients' identities."
For reporting, see:
Ryan Donmoyer and Carlyn Kolker, UBS Executive Weil Charged in U.S. Tax Conspiracy, Bloomberg.com, Nov. 12, 2008.
Martha Brannigan, Fort Lauderdale Jury Indicts UBS Official in Tax Scheme, Miami Herald, Nov. 12, 2008
Curt Anderson (AP), Exec with Swiss Bank UBS Indicted in Tax Probe, KansasCity Star, Nov 12, 2008
Jason Ryan, UBS Exec indicated in Tax Evasion Probe, ABC News, Nov. 12, 2008
Lynn Brownley, Swiss Bank Executive Indicted in US Inquiry, NY Times, Nov. 12, 2008
Recent Comments