Swiss bank Julius Baer, who is facing a criminal charge, has settled to pay $547 million. He also agreed to cooperate for three years with U.S. authorities to shut down accounts that enabled wealthy Americans to evade taxes.
According to Yahoo! News, before the attorneys for the bank made their appearance in Manhattan federal court to verify a non-prosecution deal, two of its former bankers pleaded guilty to a conspiracy charge and agreed to cooperate. The cooperation for the bankers was expected to carry on clemency at sentencing on a charge that takes a potential charge of five years detention.
Swiss bank's conformity calls for it to share documents and have witnesses at any U.S. court proceedings up to February 2019. The bank is also set to give up $547 million in penalties and restitution within a week and close the U.S. accounts established to avoid taxes.
And in return, the U.S. authorities will put off a conspiracy charge against the bank with the expectation that it will be dropped after three years. A bank lawyer then pleaded not guilty to the charge. "Bank Julius Baer not only turned a blind eye to tax avoiders but actually conspired with them to break the law," U.S. Attorney Preet Bharara stated in a statement via the Houston Chronicle.
The Big Story, additionally reported that the Internal Revenue Service chief Richard Weber claimed that the court appearances send "a strong message to the international banking community as well as U.S. taxpayers who think they can outsmart the system by hiding their money in these international banks." Prosecutors, on the other hand, made their stand that the bank from at least the 1990s through 2009 helped many of its U.S. taxpayer clients escape taxes. They had filed false federal tax returns with the IRS and if not, hide accounts at the bank from the agency.
The court proceedings take part more than four years after ex-bankers Daniela Casadei and Fabio Frazzetto were charged with a plot to help American clients hide more than $600 million in offshore accounts and evade paying taxes on the money. They had not appeared in court until Tuesday, when they entered not guilty pleas to charges.
Meanwhile, as part of their guilty pleas on Thursday, they agreed to cooperate after admitting they knew they were helping Americans evade U.S. taxes. They also revealed that they believed their work was consistent with the bank's practices.
© 2023 Lawyer Herald All rights reserved. Do not reproduce without permission.
Get the Most Popular Lawyerherald Stories in a Weekly Newsletter
Join the Discussion
Related Articles
