UBS, Feds, Swiss Reach Deal in Huge Tax Case; Names Likely to Follow

[WSJ_law_blog]

This just in: In a major break in a massive tax-evasion investigation, UBS AG and the governments of Switzerland and the U.S. have reached a settlement that could force UBS to turn over identities of thousands of account holders, a Justice Department attorney told a U.S. District Court judge Friday morning. Click here for the WSJ story; Here for the NYT story; here, here and here for previous LB coverage.

Stuart Gibson, a Justice Department tax division attorney, didn’t detail the settlement in a conference call with Judge Alan Gold that included lawyers for UBS and the Swiss government.

A hearing scheduled for Monday in Miami was postponed until Aug. 10, at which point more details are expected to be released. The judge scheduled another conference call with parties in the case for next Friday.

The Internal Revenue Service has demanded the identities of 52,000 U.S. account holders at UBS. UBS and the Swiss government have claimed that turning over those names would violate Swiss bank secrecy provisions.

The settlement is the second break in the government’s case against UBS. The case has pierced the veil of decades of Swiss private banking. In February, UBS agreed to a $780 million criminal settlement and said it would turn over some 250 names. In a parallel civil case, the IRS has been seeking for a year the identities of UBS account holders who allegedly received aid from UBS in evading taxes.

The settlement is expected to result in UBS turning over account information, though likely not as many as 52,000 accounts. UBS and the Swiss government, which has been heavily involved in the settlement talks, are expected to cite violations of Swiss law as reasons why UBS can turn over the names and still not break Swiss bank-secrecy laws. Swiss laws don’t provide confidentiality if people engage in fraudulent activities such as setting up accounts with shell companies that lack business substance.

Some 7,000 accounts are expected to be the focus of the settlement because they are tied to offshore companies and trusts that are susceptible to fraud.

I wonder what the deal between UBS and the IRS will reveal about Swiss bank accounts. Stay tuned.

[forum_admin]

Timeline of tax-evasion probe against Swiss bank

Along with the 50 million Swiss francs (about $45 million) that UBS AG lost during the financial crisis, the bank’s admitted assistance to U.S. tax evaders seriously damaged the financial powerhouse’s reputation. Here is a timeline of the most important developments:


— May 2008: Authorities in the United States begin investigating the Switzerland-based services UBS offers to customers living in the United States. UBS manager Martin Liechti is detained as a witness in the United States.

— June 19, 2008: Former UBS client adviser Bradley Birkenfeld admits to a U.S. District Court in Fort Lauderdale, Florida, to assisting tax evasion.

— June 30, 2008: The U.S. Department of Justice applies to a U.S. court in Miami for the Internal Revenue Service to be allowed to issue a “John Doe” summons for the Swiss to provide information about American clients of UBS without singling them out by name. The court approves the request a day later.

— July 17, 2008: The Swiss government receives a formal request for assistance from the IRS to help uncover UBS clients involved in tax fraud. UBS manager Mark Branson apologizes to a U.S. Senate panel for the bank’s failings and announces that UBS will accelerate its withdrawal from the U.S. cross-border business.

— Nov. 12, 2008: A U.S. court in Miami charges senior UBS manager Raoul Weil with conspiracy to commit tax fraud.

— Feb. 18, 2009: UBS reaches a settlement with the Justice Department and the U.S. Securities and Exchange Commission in a U.S. District Court, agreeing to pay $780 million dollars in fines, penalties, interest and restitution. On the same day Swiss officials give U.S. authorities files on 255 American clients suspected by the U.S. of tax fraud without allowing for the right of appeal required under Switzerland’s banking secrecy law.

— Feb. 19, 2009: The IRS submits the John Doe summons in a civil lawsuit in Miami, asking for the details on 52,000 UBS clients to be handed over.

— March 13, 2009: Threatened with international sanctions, the Swiss government agrees to drop the distinction between tax fraud and tax evasion when dealing with foreign requests for legal assistance. Until then Switzerland had refused to provide information to other countries in cases of alleged tax evasion, which is an administrative offense in Switzerland but not a felony.

— June 18, 2009: Switzerland and the United States agree on a new double taxation accord to increase Swiss cooperation in U.S. tax evasion probes.

— July 2009: UBS freezes the accounts of U.S. offshore clients who failed to act on a letter asking them to close their accounts or transfer funds to a U.S.-supervised unit of the bank.

— July 7, 2009: The Swiss government announces that it may seize UBS customer files to prevent them from being handed over to the United States.

— July 8, 2009: Federal Judge Alan Gold in Miami asks the U.S. government whether it would consider seizing the U.S. assets of UBS in order to enforce the outcome of the case.

— July 13, 2009: Judge Gold postpones until Aug. 3 the trial at the request of the U.S. and Swiss government and UBS in order to give the governments more time to negotiate a settlement.

— July 31, 2009: The U.S. and Swiss governments say they have agreed on most major disputes in the U.S. effort to get names of thousands of wealthy Americans suspected of evading taxes by hiding billions in assets with UBS. The trial is postponed.

Madoff and Stanford. will spend the rest of their lives in prison.
At least this is a start . Yet what about the “ Bankers.” who have caused people to lose their savings ,pensions , jobs , houses and in some cases their lives .Yet they continue to live in luxury.


Pictet & Cie.- claim they are the “Rolls Royce”of Swiss banks.

Swiss Banks or more correctly Swizz banks.

Swizz. ---- “ a great disappointment.” or a “ fraud.”

Fraud. ---“ an intentional deception or dishonesty.”— “a crime.”

Crime. ---“ an act committed or omitted in violation of a law.”

Serious Crimes .

Conspiring to pervert the Course of Justice.
Perverting the Course of Justice.
Contempt of Court.


The Establishment “ Cover up crimes”.

The ‘Doyens’ of the establishment.’ ( Ivan Pictet and Monty Raphael.)

Ivan Pictet.
Managing partner in Pictet & Cie Bank .--- Switzerland.
President of the Geneva Financial Centre.
World Bank.committee member.
United Nations. Investment Committee member,
Vice President – Global Humanitarian Forum.
Member of the Henokiens.
Blackstone Group --- Board Member.
Past- President – Geneva Private Bankers association.
Past –President – Geneva Chamber of Commerce and Industry.


Monty Raphael.
Quote.” ---- Doyen of U.K. Fraud lawyers.
Consultant & Head of Fraud and Regulatory Dept.
Member of Board of Directors of the Fraud Advisory panel.
Member of the Law Society of England & Wales.
International Bar Association Member.
Past President—London Criminal Court Solicitors Association.
Past Chairman ---of Anti Corruption Committee.
Founder of Business Crime Committee of the International Bar
Association.


Pictet & Cie Bank & Peters & Peters.

The bank and it’s officials deliberately withheld crucial documents requested under a High Court order.The bank and it’s officials deliberately withheld evidence from the Police , and one of it’s account managers Susan Broadhead gave a false witness statement to the police.
Another one of it’s managers Nicholas Campiche ( Now Head of Pictet – Alternative Investments.)concocted a letter pretending to be a client and closed his account. The senior partner (Ivan Pictet.)sought to have numerous documents destroyed,along with those copies held in their London office of P.A.M. Initially stating that they were forgeries then their lawyers Peters & Peters – Monty Raphael – and the barrister Charles Flint.Q.C.) –later had to admit in Court that the documents were genuine.

(1) It is a criminal offence for a bank to knowingly act for an undischarged criminal bankrupt in so far as it seeks to assist that criminal bankrupt in the fraudulent movement of monies. ( Money Laundering.)

(2) It is a criminal offence for a bank to lie to the police and the bankrupts trustee in bankruptcy in so far as any knowledge of, or dealings with the bank was refuted .

(3) A bank can be guilty of Contempt of Court if it fails to comply fully with the Courts order for discovery .

(4) The banks contempt is further compounded if it fails to address its error after it is specifically drawn to the to its solicitors attention. ( Monty Raphael).

(5) It is a criminal offence under the Financial Services Act to seek to destroy evidence that might be relevant to an investigation .

(6) It is a criminal offence not to relinquish control of funds to the Trustee immediately the fact of the bankruptcy is drawn to the banks attention.

(7) It is a criminal offence to lie or otherwise obfuscate the lawful and proper enquiries of the F.S.A.

On Dec 9th,2008. the complaint was sent to 150 Members of the House Of Lords and 230 Members of Parliament.

*** We thank --David Cameron. M.P. ( Canary Wharf Speech.) Dec. 15th. 2008.

(1) Bankers who behave irresponsibly should face professional consequences.
(2) If anyone is found to have behaved criminally they must be prosecuted.
(3) The F.S.A. and the Serious Fraud Office should be following up every lead,
investigating every suspect transaction .
(4) We need to make it 100% clear –those who break the law should face
prosecution.
(5) That we make sure we root out any wrongdoing that may have happened, whoever is
involved ,however high or well connected they may be.

Quote. ( America’s Top Lawyer .)
You can be the richest man in the world with the best lawyers that money can buy but you cannot win against a man who has got nothing left to lose and is telling the truth.

In June.2009 .it will be exactly a year since we started our campaign via the “net” to highlight our fight to get “justice”. In our second year campaign we will reveal further damning evidence . We again thank other “ E- Mailers” for their information in relation to our campaign.


Full Story.
Go to search box on “Google” and insert ( Ivan Pictet / Monty Raphael) or
insert ( Pictet & Cie / Monty Raphael.) - - then try it on “Yahoo”.
Or try (Jack Loach/ Ivan Pictet.)