This banker can verify the identities of 17,000 Americans who hid money in UBS-Switzerland to evade taxes

A former high-ranking UBS banker charged with helping Americans dodge taxes through secret Swiss bank accounts is expected to plead not guilty on Tuesday to tax fraud conspiracy in federal court in Florida.

Raoul Weil, a 54-year-old Swiss citizen and former head of global wealth management at UBS was charged five years ago with helping about 17,000 Americans conceal $20 billion in numbered accounts at the bank.

He initially disputed the charges and was declared a fugitive a few months later but was arrested on a warrant from Interpol in mid-October while on vacation in Bologna, Italy.

Weil’s appearance in federal court in Fort Lauderdale on Tuesday will be his second since he was extradited from Italy last month. He was granted a $10.5 million bond pending his arraignment, when he appeared in shackles and a gray prison jumpsuit on December 16.

Lawyers for UBS whistleblower Bradley Birkenfeld, the bank employee who revealed the tax fraud conspiracy to U.S. authorities in 2007, fear that Weil may be negotiating a “sweetheart” deal” that would spare him from a trial and ultimately shield secret account holders and other bankers from prosecution…

“Weil knows where all the skeletons are buried,” Stephen Kohn added. “The Justice Department must work closely with the IRS and Department of State to make sure that every person guilty of tax evasion in the UBS America’s program are identified and prosecuted,”…

In a case that shook Swiss banking to the core, UBS paid a record $780 million fine in 2009 and agreed to hand over the names of U.S. clients with secret accounts, breaking Switzerland’s vaunted tradition of banking secrecy to avoid feared criminal charges against the bank or other executives.

Liberal or conservative administration aside, it’s been decades since we had a Department of Justice that actively prosecuted criminal fraud on the global scale that kept Switzerland in the secrecy business. The biggest world banks and their officials have always been untouchable.

While the DOJ under Eric Holder has done a terrific job on insider trading – mostly from the work of Preet Bharara in New York – that’s not news. After all, he’s just trying to keep the market clean of low level fraud that doesn’t affect our tax burden. OTOH, the one-percenteers who store their gonads and gold in offshore tax shelters will raise even more money for the Republican Party if they end up being charged with fraud and have to start repaying their debts to the United States.

One comment

  1. Willie Sutton

    “The IBBC is a bank. Their objective isn’t to control the conflict, it’s to control the debt that the conflict produces. You see, the real value of a conflict, the true value, is in the debt that it creates. You control the debt, you control everything. You find this upsetting, yes? But this is the very essence of the banking industry, to make us all, whether we be nations or individuals, slaves to debt.” Umberto Calvini (Luca Barbareschi) explaining the nature of banking in “The International” (2009 film) See http://en.wikipedia.org/wiki/The_International_%282009_film%29 also Bank of Credit and Commerce International (BCCI) and the Banco Ambrosiano.

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