Wednesday, April 25, 2012

Tax Cheating Bank Must Fork Over $16 Million


Wegelin & Co., the 270-year-old Swiss bank charged with helping U.S. taxpayers hide more than $1.2 billion from the Internal Revenue Service, was ordered by a U.S. judge to forfeit $16 million Bloomberg writes.  U.S. District Judge Laura Taylor Swain in Manhattan yesterday entered a default judgment against Wegelin, allowing the government to take the money in Wegelin’s correspondent account in the U.S., held at UBS AG in Stamford, Connecticut.

Wegelin, based in St. Gallen, Switzerland, and three bankers at its Zurich branch were indicted in February on charges of conspiring with clients to evade U.S. taxes. Prosecutors called Wegelin a “fugitive” after the bank declined to send a lawyer or other representative to a court hearing in the case.  Prosecutors claimed that Wegelin and at least two other Swiss banks used the UBS account to launder money deposited by U.S. taxpayers to help them avoid detection by the government. Wegelin didn’t take any action to challenge the government’s claim to the money….

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