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Cayman Island Firms Hide $130M in Tax Havens
Two Cayman Island financial institutions, Cayman National Securities Ltd. and Cayman National Trust Co. Ltd., pleaded guilty to conspiring to hide more than $130 million in Cayman bank accounts from the United States Internal Revenue Service (IRS) and to evade U.S. taxes on the income earned in those accounts.
According to the plea agreements, the companies will produce through the treaty process account files of non-compliant U.S. taxpayers who maintained accounts at Cayman National Securities Ltd. and Cayman National Trust Co. Ltd. and pay a total of $6 million in financial penalties.
‘The guilty pleas of these two Cayman Island companies today represent the first convictions of financial institutions outside Switzerland for conspiring with U.S. taxpayers to evade their lawful and legitimate taxes,’ said Manhattan U.S. Attorney Preet Bharara.
Preet Bharara added, ‘The plea agreements require these Cayman entities to provide this Office with the client files, because we are committed to finding and prosecuting not only banks that help U.S. taxpayers evade taxes, but also individual taxpayers who find criminal ways not to pay their fair share.’
The Internal Revenue Service – Criminal Investigation, and the U.S. Attorney’s Office for the Southern District of New York announced the guilty pleas of Cayman National Securities Ltd. and Cayman National Trust Co. Ltd.
Cayman National Securities Ltd. and Cayman National Trust Co. Ltd. are affiliates of Cayman National Corporation, which provided investment brokerage and trust management services to individuals and entities within and outside the Cayman Islands, including citizens and residents of the United States.
The companies’ offense conduct took place from at least 2001 through 2011, during which they assisted certain U.S. taxpayers in evading their U.S. tax obligations to the IRS and otherwise hiding accounts held at the companies from the IRS.
According to the Information, statements made during the proceedings today, and other documents filed in Manhattan federal court, including the Statement of Facts to the plea agreements, the companies opened and/or encouraged many U.S. taxpayer-clients to open, accounts held in the name of sham Caymanian companies and trusts, thereby helping U.S. taxpay.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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