Grimy Times has learned that Wegelin & Co., a Swiss private bank, has been indicted on U.S. tax charges for conspiring with U.S. taxpayers to hide more than $1.2 billion in secret accounts.
The indictment, unsealed in Manhattan federal court, charges Wegelin & Co. with conspiring with U.S. taxpayers and others to hide the existence of bank accounts held at Wegelin and the income generated in those secret accounts from the Internal Revenue Service (IRS).
The indictment also charges three client advisers at the bank, Michael Berlinka, Urs Frei, and Roger Keller, with participating in the conspiracy. The case is pending before U.S. District Judge Jed S. Rakoff.
According to the indictment, Wegelin & Co. provided private banking, asset management, and other services to clients around the world, including U.S. taxpayers living in the Southern District of New York. The bank had no branches outside of Switzerland but directly accessed the U.S. banking system through a correspondent bank account held at UBS AG in Stamford, Conn.
The indictment alleges that Wegelin & Co. conspired with U.S. taxpayers and others to hide the existence of bank accounts held at Wegelin and the income generated in those secret accounts from the IRS from 2002 through 2011. During this time, the bank opened and serviced dozens of undeclared accounts for U.S. taxpayers in an effort to capture clients lost by UBS in the wake of widespread news reports that the IRS was investigating UBS for helping U.S. taxpayers evade taxes and hide assets in Swiss bank accounts.
The indictment also alleges that Wegelin & Co. used sham corporations and foundations formed under the laws of Liechtenstein, Panama, and Hong Kong to hide the true ownership of the secret accounts. The bank also told U.S. taxpayer-clients that their undeclared accounts would not be disclosed to U.S. authorities because the bank had a long tradition of secrecy.
The case is a significant victory for the IRS and the U.S. government in their efforts to combat tax evasion and money laundering. The indictment highlights the need for banks and financial institutions to comply with U.S. tax laws and regulations.
The U.S. government has also seized more than $16 million from Wegelin & Co.’s correspondent bank account in the United States, in accordance with a civil forfeiture complaint and seizure warrant.
The indictment and civil forfeiture complaint are a reminder that the U.S. government will aggressively pursue allegations of tax evasion and money laundering, and that banks and financial institutions must be vigilant in their efforts to comply with U.S. tax laws and regulations.
Defendant: Wegelin & Co.
Criminal Charges: Conspiring with U.S. taxpayers to hide more than $1.2 billion in secret accounts.
City and State: Manhattan, New York
Exact Date: February 26, 2012
Sentence or Outcome: Case pending before U.S. District Judge Jed S. Rakoff.
Dollar Amounts: $1.2 billion in secret accounts, $16 million seized from Wegelin & Co.’s correspondent bank account.
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- 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: Federal
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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