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Reply #74: UBS exec admits banks sham tax shelters broke U.S. law [View All]

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Octafish Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-24-08 08:26 AM
Response to Reply #20
Not to pile on, or anything:

UBS exec admits banks sham tax shelters broke U.S. law

Bank, U.S. authorities to examine 19,000 accounts for tax fraud, CFO of wealth management unit tells Senate panel

By Neil Roland
Financial Week
July 17, 2008

UBS admitted it broke U.S. law in setting up sham offshore tax shelters for wealthy Americans and agreed to work with U.S. authorities in reviewing 19,000 accounts to identify clients who may have committed tax fraud.

Our compliance system had failures, and misconduct appears to have occurred, Mark Branson, chief financial officer of UBSs global wealth management unit, told a Senate panel today. It is apparent now that our controls and supervision were inadequate.

Mr. Branson also said UBS will discontinue offering offshore banking and securities services to American clients through branches that arent licensed in the U.S. The firm allowed its Swiss bankers to market securities and banking services on U.S. soil without a proper license from 2000 to 2007, according to a report released today by the Senate Permanent Subcommittee on Investigations.

Mr. Branson made the disclosures in testimony before the panel after the panel reported UBS hid about $18 billion for 19,000 Americans who didnt declare the assets. Switzerlands largest bank is under investigation by the Department of Justice, the Internal Revenue Service and the Securities and Exchange Commission.


The U.S. government, particularly in this economy, is not going to blow up an international financial institution with a criminal indictment, Jacob Frenkel, a former federal criminal and SEC prosecutor, said in an interview. That, however, provides no protection or insulation for civil and criminal actions against individuals whose conduct is squarely within the focus of this alleged fraud.


Thanks for the important reminder, my Friend. You've added a great deal to our understanding of these subjects, leveymg.


BTW: Where DID all that money go?
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