UBS admits they helped US citizens defraud the IRS - 19,000 had an offshore account with them

On Thursday the shareholders of UBS gathered to here a litany of woe from their Directors - not least that the world’s biggest wealth manager was bowing (they claim) to Governments pressures to release the names of an unspecified number of American customers who may have committed tax fraud in having their affairs handled by the financial wizards of the bank’s Geneva, Zurich and Lugano offices

This admission is seen by observers that the approximately 19,000 US citizens who held offshore accounts indicates a settlement in the long-running investigations into alleged tax evasion may be imminent. Peter Kurer (see pic) UBS chairman had to admit that such fraud that, “Our investigations have uncovered a limited number of cases of tax fraud under both U.S. and Swiss law.” (NYT) See Sunday, July 20, 2008Massive UBS scheme to help US taxpayers to defraud IRS of tax on at least US$18 Bn.

The US department of Justic (DOJ) is claiming that the "limited number" of cases is in the region of 17,000 of their American clients who have evaded US $300 million a year in taxes through hidden offshore accounts.

Raoul Weil, who as Chairman and CEO of Global Wealth Management & Business Banking oversaw UBS’s well organised and systematic illegal cross-border private banking operations until 2007, was indicted this month by an American grand jury in Florida on a charge of conspiracy.

The indictment provides details and alleges the bank trained desk heads and bankers evading detection by U. S. authorities, for example, by changing hotels and using encrypted laptop computers. It says the bank reminded clients that it had a record since 1939 of concealing client identities from the United States - many of whom had been recruited as clients at the Art Basel Miami Beach, a major annual arts fair in Miami Beach.

Mr. Weil faces a maximum of five years in prison and a fine of $250,000 if convicted on all counts.

Bradley Birkenfeld, 43 , a former UBS banker pleaded guilty in June to helping billionaire real estate developer Igor M. Olenicoff from Orange County, CA evade U.S. taxes on $200 million hidden in Swiss and Liechtenstein bank accounts (his Olen Properties Corp., in Newport Beach, Calif., owns 11,000 residential units and 6.25 million square feet of commercial space in California, Nevada, Florida and Chicago - The Billionaire With The Empty Pockets) . Birkenfeld also agreed to 'fess up and to "co-operate with investigators".

Birkenfield has been released on a $100,000 secured bond, and a $2 million personal surety bond, surrendered his passport and is subject to electronic monitoring. Another defendant, Mario Staggl, 43, a Liechtenstein citizen and resident, remains at large, the government said.

According to the indictment, Staggl was the owner of New Haven Trust Company Ltd., a Liechtenstein trustee of accounts used to hide Olenicoff's ownership of assets and he "devised, marketed and implemented tax evasion schemes for United States clients."

It may be of interest to some citizens that Page 9 para 28 of the Indictment states ..

28. On or about December 17,2001,I.O. caused to be wire transferred approximately$89.4 million from the Bahamas branch of the large bank based in London bank account to anaccount at the Swiss Bank.
Filings in federal court in Santa Ana, Calif., show the real estate magnate had accounts with Barclays Bank in the Bahamas for which Olenicoff was a signatory. (see IRS - Examples of Corporate Fraud Investigations FY2008)

Who wants the Government as a major shareholder in their bank ?