Swiss Bankers Charged With Hiding More Than $1 Billion From The IRS

Three Swiss bankers were charged Tuesday with hiding more than $1.2 billion in U.S. taxpayer accounts from the IRS, by Preet Bharar, the Manhattan U.S. Attorney.

Michael Berlinka, Urs Frei And Roger Keller allegedly conspired with some U.S. taxpayers and others to hide Swiss bank accounts and the income generated from them while working as client advisers for a Swiss bank, according to a press release from Bharar's office. The three worked on dozens of undeclared bank accounts in 2008 and 2009 in an effort to scoop up business lost by UBS and another Swiss bank following reports that UBS was helping U.S. account holders evade taxes, according to the press release.

The case has been assigned to Judge Jed Rakoff, according to the release.

The three bankers allegedly helped U.S. clients open using sham corporation names in other countries as well as used code names and numbers on undeclared accounts to minimize references to the clients' actual names, according to the press release. In addition, they allegedly made sure that any mail related to the accounts wasn't sent to clients at their U.S. addresses and communicated using their personal email accounts to avoid detection, among other allegations, according to the release.

The charges come as tensions between Switzerland and the U.S. are rising over Swiss bank secrecy -- a result of a Swiss law that prevents Swiss bankers from revealing client information, according to Reuters. Swiss banks hold an estimated $2 trillion in offshore wealth and the U.S. Justice Department is investigating 11 Swiss banks suspected of helping wealthy Americans evade through Swiss accounts.

Comments

[NC1165]

07:29 PM on 06/15/2012

They say $1.2 billion like it is actually worth something. Sure, I would love to have that much money. But in an economy where an IPO can be valued at $100 billion, that is just the tip of the iceberg. More than likely foisted to assuage the chest beating masses and make the U.S. Attorney's office look productive. Keep digging and when you see Chinese faces, let me know.

[Billy Jack]

05:52 PM on 01/04/2012

Still think the wealthy don't pay their share? Poor people don't open Swiss Bank accounts

[tosc]

11:15 AM on 01/04/2012

so there is where all that money went to....I knew you put it somewhere safe.....oh, you forgot to pay the taxes on that money? woops.....pay up you tax evading trickle-down business men! the tax on that money, calculated over the years might help ease the deficit...don't ya think?

[nypapajoe]

08:45 AM on 01/04/2012

These Swiss financiers AKA Bankers make the Mafias across the world seem like bafoones! These people are masters of the banking game that specializes in keeping all transactions secret! We will never know the truth!

[lowrodiay65]

08:34 AM on 01/04/2012

Amazing, the americans complaining about taxes are the same people who cheered the destruction and rebuilding of Iraq and afghanistan and cheer about giving more foreign aid.

[lowrodiay65]

08:32 AM on 01/04/2012

If the job creators have to pay taxes like the rest of us who is going to create the jobs that they aren't creating now.

[kemcha]

08:54 AM on 01/04/2012

What are you talking about, they have never created jobs in the first place. Republicans have conned Americans into thinking that sending U.S. jobs overseas helps create jobs in the United States, which is an utter and complete fallacy.

[uniquindividual]

09:00 AM on 01/04/2012

This issue has been researched. It is a fantasy. Researchers can't find a 1%er who will change there plans regarding domestic investment if their taxes are raised to pre Bush tax cuts rates.

You have been had.

Oh, and the earth revolves around the sun.

[robodawa]

08:02 AM on 01/04/2012

The Swiss were the pawnbrokers for the Nazis. A nation that says it is a neutral state and then deliberately makes fortune after fortune from war and the needs of desperate minorities is to be shunned and despised. It's hard to respect a country that has a cultured and sophisticated front and then does trade that puts the mob to shame.

[uniquindividual]

09:01 AM on 01/04/2012

Opportunists and elitists.

[GOP Lie Detector]

06:56 AM on 01/04/2012

This is good news, and hopefully it will result in the seizure of all the illegal accounts.

[Molly D]

03:39 AM on 01/04/2012

Surprise, surprise, surprise! And they sure gave the case to the right judge.

[JAT3]

03:24 AM on 01/04/2012

WOW! Ashame... But doesn't seem like there will be any changes unless the Swiss decide on being a good role player in all this.

[Steve Rockett]

01:53 AM on 01/04/2012

Great job Obama administration. Get all the crooks.

[Mister Grumpy]

01:22 PM on 01/04/2012

He'd better hurry....... the GOP is sure to stop this if and when they get control.........

[RitaS]

01:28 AM on 01/04/2012

Come on, this HIDING has been going on for decades...

Bigger question, WTF are they REALLY going to do about it once & for all???

[Billy Jack]

05:53 PM on 01/04/2012

shoot them

[RitaS]

11:56 PM on 01/04/2012

If that was legal, I'd be in the crowd cheering it on....

[nopilikia]

01:10 AM on 01/04/2012

Now maybe there will be some real justice. Judge Rakoff will show those banksters were the dog died.

[Maymae]

12:43 AM on 01/04/2012

Send in our troops who just left Iraq. Invade Switzerland and take back our wealth, NOW!

[Marcus01]

10:36 AM on 01/04/2012

Good luck with that fantasy. There are reasons no one has tried to invade Switzerland in the last 500 years.

http://www.youtube.com/watch?v=0ufkwTM82e4

[moneyman1]

11:46 AM on 01/04/2012

Yeah, because all the crooked leaders, including some of our US "stars" put some of their money in numbered Swiss accounts just in case......... Let's hope we actually get an accounting of who these people are by starting with Phil Gramm (former US senator from Texas and once and former UBS vice chairman)....... also close friend and accomplice to Bushes.

[lipps]

11:51 PM on 01/03/2012

None ever stops to think that maybe taxes are too high here? The country was built on freedom and is slowly being destroyed by the IRS and Democrat spending.

[Cold in Michigan]

12:19 AM on 01/04/2012

Give it a rest. Taxes have never been lower. When you figure out how to run a country with zero taxes ...run for office, write a book, become a historian for the banks. Until then understand that repeating words you hear on Fox Entertainment are empty and offer no solutions.

[nopilikia]

01:11 AM on 01/04/2012

2nd that.

[bgofca]

01:18 AM on 01/04/2012

the taxes for the rich are much lower than they've ever been. every democratic president has left the budget in good shape when they left office (carter balanced the budget and had a very small trade deficit; reagan and bush 1 put our country in lots of debt with their tax cuts and deregulation, clinton left office with a huge surplus, bush2 spent all of the surplus plus sold us to the chinese so that he could give huge tax cuts to the wealthy and big business. bush also got rid of regulations on investment bankers which let to the collapse of our economy in 2008) The republicans always blame the democrats for spending, but it is always the republicans that put our country into huge debt. the democrats spend money helping out regular people and communities, the republicans only believe in corporate welfare.