Super Rich Tax Cheats Outed by Bank Clerk

ABC News:

Hundreds of super-rich American tax cheats have, in effect, turned themselves in to the IRS after a bank computer technician in the tiny European country of Liechtenstein came forward with the names of US citizens who had set up secret accounts there, according to Washington lawyers investigating the scheme.

The bank clerk, Heinrich Kieber, has been branded a thief by the government of Liechtenstein for violating the country's bank secrecy laws.

He is now in hiding but scheduled to testify to the Senate's Permanent Subcommittee on Investigations Thursday via a video statement from a secret location, according to Congressional investigators.

Read the whole story: ABC News

Comments

[treetracker]

I will laugh til I drop if Cindy McCain's name is on that list. Anyone found a link to the names published in Italy?

[Gatormouth]

ABC News and Wall Street Journal. The story won't die. But notice: Phil Gramm's name isn't mentioned in either! Must not be "newsworthy", huh?

"ABC News
Day of Reckoning? Super Rich Tax Cheats Outed by Bank Clerk
Technician in Liechtenstein Turns Over Names of Americans With Secret Bank Accounts
By BRIAN ROSS and RHONDA SCHWARTZ

July 15, 2008—

Hundreds of super-rich American tax cheats have, in effect, turned themselves in to the IRS after a bank computer technician in the tiny European country of Liechtenstein came forward with the names of US citizens who had set up secret accounts there, according to Washington lawyers investigating the scheme.

The bank clerk, Heinrich Kieber, has been branded a thief by the government of Liechtenstein for violating the country's bank secrecy laws.

He is now in hiding but scheduled to testify to the Senate's Permanent Subcommittee on Investigations Thursday via a video statement from a secret location, according to Congressional investigators."

[vippy]

The German Government paid 5 million Euros for the CD of this employee, where he has all the names, he sold one to the US and to Britain as well. Germany sort of published the names or
their businesses who hid their money in Liechtenstein. One of the government officials in charge
of the post office has already resigned. More names were mentioned who work in the Bundestag,
their government, along with other bankers and textile manufacturers, who already have millions.
The Germans also gave him a new identity and relocated this man.

[Gatormouth]

from The Wall Street Journal

Four Face Senate Inquiry Over Tax Haven
By EVAN PEREZ
July 16, 2008; Page C3

"WASHINGTON -- The tax strategies of four wealthy people are expected to be a focus of a Senate subcommittee hearing Thursday, as legislators join the burgeoning probe of alleged tax-evasion services marketed by UBS AG and other banks."

The Senate subcommittee, chaired by Sen. Carl Levin (D., Mich.), has asked four Americans to testify at Thursday's hearing: Peter Lowy, of Beverly Hills, Calif., whose family controls Australian shopping-mall developer Westfield Group; Steven Greenfield, of New York; Shannon Marsh, of Fort Lauderdale, Fla.; and William Wu, of Forest Hills, N.Y.

Also on the list is Martin Liechti, a senior UBS private-banking official, who has been detained by U.S. authorities on a material-witness warrant. That requires him to remain in the U.S. to possibly aid in the government's criminal investigation."

For "fun" read this. It makes me P.O.d, though.

[WrongwayFeldman]

FYI - The Italian "list" can be found here:

http://www.finanzaonline.com/forum/showthread.php?t=899240

If the US Senate has sat on this story for 5 long years you can bet the American list will never see the light of day......or until after the election.......

[itolduso]

My bank sells my personal information every day to insurance companies, telemarketers, and their own affiliated financial products companies. So do all of my utility companies. For the past 7 years, the thugs in charge have decimated ordinary citizen's rights to privacy, allowing agents to investigate library records, financial transactions, phone records, and internet use, all without a warrant. Do the rich really think they're immune? We need to demand the list and 'out' the criminals.

[Ramirez]

Do you feel a bank has the right to keep personal information about its customers secret from foreign governments?

[paixa3]

You are asking the wrong question. The USA law states that all income, regardless of the source country may be taxable for income tax.

I hope the list GET PUBLISHED publically and the culprits go to jail. I pay my taxes, they can pay theirs.

[itolduso]

I believe banks have a responsibility to report suspicious transactions and unlawful activity (which U.S. and many foreign banks are required by law to do), I believe governments have a right to information regarding their own citizen's unlawful activities in foreign nations, and I also believe the government has a responsibility to it's citizens to lawfully attempt to recover taxes owed and to prosecute the leeches who are sucking our nation dry.

[Gatormouth]

They only have a right to try.

[truthynesslover]

sure as lond as they arent breaking the law,thats the difference.sorry you cant see that!

[markusmarkus]

The privacy laws in this country are not the same as those in other countries. Heinrich Kieber, the tech who SOLD the names et al to governments should be prosecuted under the laws of Liechtenstein.
We bitch and moan about boooosh not adhereing to the laws of this country. Why should our standards be any different when it comes to someone who breaks the laws of his respective country.

[Gatormouth]

Of course the whistle blower could be prosecuted if brought into Liechtenstein' jurisdiction. But do you really think that any country that has been screwed over by these banking practices is going to allow extradition? As much as some would like to "kill the messenger" he probably is going to become a wealthy hero. Hard cheese.

[vippy]

The man had guts. In exchange he received 5 million Euros from German Government
and a new identity. The Brits and the USA also got their list, mind you it dates back to
February 2008. So this article finally came to light, wonder why?
This man should be given a medal, he jeopardized his life.

[Troubledwawa]

Just pay your taxes...

Stop the whining, already.

[theyak]

I want prosecutions. Under RICO if possible. It's time to set an example that the laws apply to everyone, not just those that need public defenders. Tax, plus interest, plus penalties and a whole new crop of fresh meat in general prison population. Yes, I am vindictive.

[Ramirez]

Do you think that personal information stolen from a foreign bank and sold to the US government should be allowed as evidence in a US court?

[paixa3]

Are you on the list??????­??????????­??????????­??????????­??/

[paixa3]

Give it up already...­..........­..please. Do you copy and paste this for every poste.

Get a brain. Please.

[markusmarkus]

It's "poison fruit," in legal terms. Ergo, all evidence and proceedings resulting from that poison fruit is verboten.

[LeftCoaster64]

Yes I do! Bring all those whining fat-cats to court and make them pay just like us poor folk going through a mental recession.

[Bettysdad]

Exactly how many liberal Democrats will be on the list?

Zero?

Minus 6?

Absolute zero?

[Merckx]

Do you mean because you think there are no liberal Democrats with that kind of money?
There are many.
Or do you think it because liberal Democrats pay their taxes?

[TRocks]

Here is a much better source. Fun to read as well. Yet not so much to ponder about...
http://www.spiegel.de/international/business/0,1518,537640,00.html

[Gatormouth]

Your article is from Spiegle on Line and dated Feb. 25th., 2008. It gives good background on the informant, and casts doubt upon his character and this probably explains why the story took so long to develop in the U,S.press. The newer articles are from June, 2008 and later and show that there is much substance to the story beyond the (hoped for) validity of the data discs themselves, especially the Phil Gramm involvement. As they say, the story now has legs. I am not having "fun" reading these articles. Don't attempt to trivialize this situation. This is not a case for "Move along, nothing to see".

[thisoldbroad]

PLEASE let them release the names to the media!!!!!!!!!!!!

OH PLEASE!!!!!!!!!!!

[paixa3]

I agree. We need to publish people's identity that conscieneously break the law. In fact, why not try them at one trial like they had in Iowa for the illegal aliens.........

March them in and proclaim..­..........­.guilty.

[Gatormouth]

Tax evasion took out Capone. Maybe this is what we finally need to put awar Gramm and his lovely wife..

For UBS, and for confidential banking, the future now rests on the outcome of the US election in five months. UBS's links to the US financial establishment centre on its vice-president, Phil Gramm. Gramm, a former Texas senator who is co-chairman of John McCain's campaign, is tipped to be his choice for Treasury Secretary if he is elected.

http://www.guardian.co.uk/business/2008/jun/29/ubs.banking

[Marcee]

Thanks for the interesting link about the Swiss owned UBS bank fraud. What a mess it is!

After reading this article, one really has to wonder about Mc Bush's judgment and common sense. How in the world could McBush be so naive to keep Phil Gramm on as economic advisor, even before Gramm's fatal comments that the recession is "mental" and that we are a "nation of whiners." The campaign had to know that this complex UBS banking and securities fraud was pending. It was common knowledge that Phil Gramm served as chairman of UBS Securities, the Swiss bank’s investment banking arm. In the past Gramm had even lobbied Congress on behalf of UBS. Perhaps this article tells us clearly why Gramm and McBush favor less government regulation.

[paixa3]

McBush has no common sense nor good judgement, why wonder about this?

[Gatormouth]

Anotyer source:

New York Times

Wealthy Americans Under Scrutiny in UBS Case
By LYNNLEY BROWNING
Published: June 6, 2008

"The case could turn into an embarrassment for Marcel Rohner, the chief executive of UBS and the former head of its private bank, as well as for Phil Gramm, the former Republican senator from Texas who is now the vice chairman of UBS Securities, the Swiss bank’s investment banking arm. It also comes at a difficult time for UBS, which is reeling from $37 billion in bad investments, many of them linked to risky American mortgages."

http://www.nytimes.com/2008/06/06/business/worldbusiness/06tax.html?scp=1&sq=gramm+and+wealthy+americans&st=nyt

[sheila]

ok, but it has taken 5 years for congress to come out with this? kinda makes you wonder who, exactly, they were blackmailing into saying or voting exactly for what? Rockefeller hiding torture, Colin Powell selling out, Lieberman going all fascist, etc.

makes ya wonder...

[Birdman]

I do not wonder you have to remember 3 of those 5 have been under republican rule. We all know how the republicans prefer to hob nob and do favors for the rich so is it surprizing? I wonder how long it will take for the republicans to put a stop to this investigation by simply not showing up to the hearings, or other foot dragging techniques.

[Ramirez]

From The Daily Caveat:
****

Wednesday, February 27, 2008
Codename: Henry - Heinrich Kieber is the German Tax Informant After All

Although the FT seemed to cast some doubt that Henirich Kieber - codenamed Henry - was indeed the informant behind Germany's recent series of tax evasion busts, the consensus seems to be that Heinrich is in fact, the man. Now, how a convicted real estate fraudster (in Spain) ended up working for super-secret Liechtenstein bank, LGT, I'll never understand. Isn't that what Interpol is for?

But I digress...

The German secret service reportedly spent millions of Euros to purchase four DVDs worth of LGT banking records from Kieber. The files revealed all manner of funds scurried away in Liechtenstein's secretive banks not just by 600 German citizens, but also 800 more from Great Britain, Canada, France, Spain, Italy, Denmark, Finland, Sweden, the U.S. and Australia.

Many of these countries have begun their own investigations. ...
-snip-

And if you're looking for more meat on the story but have so far skipped over all the links above, at least make a point of checking out this Speigel article on Heinrich Kieber. It is without question the best and most exhaustive account you'll find anywhere.

--MDT
http://www.michaeldavidthomas.com/dailycaveat/2008/02/codename-henry-heinrich-kieber-german.html

[letsgetsmart]

You can't be serious? Every under cover is given a verifiable rap sheet because the crooks have other people in law enforcement on their pay rolls to verify for them. This may or may not be the case here but it wouldn't surprise me if it was. Law enforcement work on investigations for years and you have no idea if they started one on this group years ago.

[Ramirez]

from Spiegel:
****

Tax Whistleblower Sold Data to the US
By SPIEGEL Staff

The shadowy informant who blew the whistle on German tax cheats also sold data to US authorities, SPIEGEL has learned. The man, who was paid almost 5 million euros for DVDs full of information, has now been given a new identity by German intelligence.

-snip-

Part 2: 'The BND Did Everything Correctly'

Spanish investigators were after Kieber for a 1996 fraudulent real estate deal in Barcelona, which had earned Kieber 600,000 Swiss francs ($553,000). He apparently fled to Argentina before returning to Liechtenstein, where he began working for LGT Bank in April 2001. No one at LGT was familiar with his past history in Barcelona.

read the whole story at:
http://www.spiegel.de/international/business/0,1518,537640,00.html

[Ramirez]

Bad link above. Sorry.

SPIEGEL has the most complete story on Kieber. Here's another try at the link.

http://www.spiegel.de/international/business/0,1518,537640,00.html

[truthynesslover]

so a crook worked for crooks!your point is?

[Krikkit]

I couldn't find the list on the internet. Apparently, Italy has removed it and it wasn't picked up and diseminated. Too bad. I sure would like to know who those 100 or so Americans are who are on that list.

The only way to fight corruption of this scale is to drag it into the light. But of course, the conservative status quo doesn't want that. It would crimp their style.

Is anyone naive enough to wonder why it is that so many European countries are balking at what this one man has done? At least Germany sees the benefit of not allowing their super-rich to profit at the expense of their country. Will we do the same, or will the super rich get off with another "Martha Stewart" wrist slap? Do I even need to ask that question?