NEW YORK – A Swiss-based asset management firm and its subsidiaries have been caught helping wealthy Americans hide their money offshore, and they’re paying the price. Swisspartners Investment Network AG, along with three of its wholly-owned subsidiaries, has agreed to pay $4.4 million to the United States for its role in assisting U.S. taxpayer-clients in opening and maintaining undeclared foreign bank accounts from 2001 through 2011.
According to the U.S. Attorney’s Office for the Southern District of New York, the Swisspartners Group has entered into a non-prosecution agreement (NPA) with the government, which requires the firm to forfeit $3.5 million to the United States, representing certain fees it earned by assisting its U.S. taxpayer-clients in opening and maintaining these undeclared accounts. The firm will also pay $900,000 in restitution to the IRS, representing the approximate amount of unpaid taxes arising from the tax evasion by the Swisspartners Group’s U.S. taxpayer-clients.
The NPA was entered into based on the Swisspartners Group’s remedial measures, voluntary self-reporting, and extraordinary cooperation, including its voluntary production of approximately 110 client files for non-compliant U.S.-taxpayer clients. The documents provided by the firm have enabled authorities to identify U.S. tax cheats who have hidden behind phony offshore trusts and foundations.
‘The extraordinary cooperation of Swisspartners has enabled us to identify U.S. tax cheats who have hidden behind phony offshore trusts and foundations,’ said Deputy Attorney General James M. Cole. ‘In this and other cases around the world, we will continue to provide substantial credit for prompt and full cooperation.’
Assistant Attorney General Kathryn Keneally added, ‘For many accountholders, the time to come forward voluntarily to avoid criminal prosecution has run out.’ U.S. Attorney Preet Bharara stated, ‘For its wrongdoing in assisting U.S. taxpayers to open and maintain undeclared accounts overseas, the Swisspartners Group is being made to pay $4.4 million in forfeiture and restitution.’
The case serves as a clear example of the benefits that can be obtained from early and complete cooperation with federal law enforcement. IRS-CI Chief Richard Weber said, ‘I am very pleased that we have successfully concluded negotiations with the Swisspartners Group. In making amends, the Swisspartners Group has turned over 110 account files relating to U.S. taxpayer-clients who maintained undeclared assets overseas.’
The NPA was entered into between the U.S. Attorney’s Office and swisspartners Investment Network AG, along with three of its wholly-owned subsidiaries: Swisspartners Corporate Services AG, Swisspartners Financial Services AG, and Swisspartners Investment Management AG.
Defendant/respondent: Swisspartners Investment Network AG
Exact criminal charges: Aiding and assisting U.S. taxpayer-clients in opening and maintaining undeclared foreign bank accounts
City and state: NEW YORK
Exact date: 2011
Sentence or outcome: Forfeiture of $3.5 million and restitution of $900,000, along with non-prosecution agreement
Dollar amounts: $4.4 million (total payment), $3.5 million (forfeiture), and $900,000 (restitution)
Related Federal Cases
- David B. Schmitt, Tax Evasion, New York 2024 · Pennsylvania
- Morris Zuckerman, Tax Evasion, New York 2016 · Washington
- Marc A. Seedorf, Tax Evasion, New York 2024 · Massachusetts
- Frank J. Picone, Tax Evasion, WV, 2023 · Washington
- Samuel Gentle, Tax Return Obstruction, New York 2014 · Texas
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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