U.S. judge denies bail hearing for banker in Switzerland

A U.S. court will not hold a bail hearing for a Swiss banker wanted for allegedly helping Americans avoid taxes as long as he fails to appear in person, a U.S. judge ruled on Friday.

Judge Victor Marrero of U.S. District Court in Manhattan wrote in an opinion that granting Stefan Buck a hearing in his absence while he remained in Switzerland would encourage others to flee prosecution.

Buck, who was head of private banking at Zurich-based Bank Frey & Co, asked for a bail hearing in November in an unusual court filing through his New York lawyer.

He also sought a waiver that would allow him to return to Switzerland while the case was ongoing.

Marrero wrote that granting the request "would be tantamount to signaling to future defendants that their best strategy would be to flee prosecution and deliver bail demands from a non-extradition country."

Switzerland has an extradition treaty with the United States, but does not extradite its own citizens to other countries in cases of tax evasion.

Buck's lawyer, Marc Agnifilo, said in an email: "The court's ruling is legally sound. I was hoping, however, that due to the unique circumstances that the court would make an accommodation to a defendant who genuinely wants to come to New York to face these charges."

Prosecutors had opposed Buck's request, saying he should travel to New York and answer the charge against him before the judge considers bail.

Bank Frey & Co shut down in 2013 because of a U.S. investigation into whether Swiss banks helped Americans hide money offshore.

A Swiss attorney who was charged alongside Buck, Edgar Paltzer, pleaded guilty and has been permitted to return to Switzerland and travel throughout Europe, according to the November filing by Buck's lawyer.

The case is U.S. v. Stefan Buck, U.S. District Court for the Southern District of New York, No. 1:13-cr-282.

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Switzerland, U.S., Bank Frey & Co

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