U.S. Tax-Evasion Probe Leads To Israeli Banks

[Purveyor]

Source: REUTERS

(Reuters) - The U.S. pursuit of offshore tax evaders is widening to include Israel, where U.S. authorities are scrutinizing three of Israel's largest banks over suspicions their Swiss outposts helped American clients evade taxes, people briefed on the matter said.

The banks under scrutiny by the U.S. Justice Department's criminal tax division are Bank Hapoalim, Bank Leumi le-Israel BM and Mizrahi-Tefahot, the sources said.

The shift to Israel from Switzerland, for years the main focus of the Justice Department's campaign against offshore private banking secrecy, signals the broadening of a landmark probe by the agency that began in 2007 with UBS AG, Switzerland's largest bank.

The shift also opens up a potential sore spot in the historically close relationship between the United States and Israel, a key diplomatic and military ally in the Middle East that is the biggest recipient of U.S. aid -- $3.1 billion last year.

MORE...


Read more: http://www.rawstory.com/rs/2011/09/16/u-s-tax-evasion-probe-leads-to-israeli-banks/

[Donnachaidh]

1. k&r. n/t

[pocoloco]

39. And there it will end!!

[avaistheone1]

2. Surprise. Surprise.

[Name removed]

24. Deleted message

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[valerief]

3. Duh. Ya think? nt

[Lasher]

4. Whatever happened to that UBS probe?

Last thing I remember about it was, we were going to let the US tax evaders get away with it if they just came forward and paid the back taxes they owed. And did Switzerland come clean with the full list of evaders, or did they hold some back?

[Exilednight]

33. Hillary worked out a compromise that returned a fraction of the money back to the US in

taxes. I don't remember all the specifics, but it went a little like this. US citizens were given amnesty and were allowed to pay back taxes penalty free. In return, if the US reached a certain dollar then Hillary promised the Swiss that we would drop the effort to turn over names.

[Lasher]

40. Hardly a deterrent.

Makes me wonder why they even bother to trace the Israeli connection if they're just going to go through the motions like this.

[DFW]

5. I know of one guy who must be trembling if this gathers any speed

He built this house for himself in Florida:


Then he went "bankrupt," promised to repay a $35 million bank loan at $175,000 a month (or some such figure),
is still living in the house (cost $25 million, and the bank probably is having a hard time finding a buyer),
and is suddenly making frequent trips to Israel. I doubt his economic woes are what suddenly made him find
religion, and I also doubt his finances suddenly made him want to look for long lost relatives.

He isn't making $1750,000 a month (even before taxes) now, and he doesn't appear to fear being incarcerated
any time soon, from what I hear. Of course, he is a big Republican supporter in Florida, so maybe such
transgressions like stiffing a bank for $35 million are only considered mere bagatelles down there? I know
that in Florida that after a bankruptcy, they can't seize your house, but who would WANT to seize a house
like that anyway? The Sultan of Brunei?

[Enthusiast]

11. Only an asshole

would even want a house like that.

[w0nderer]

12. don't forget

stiff a bank for 35 million, it's just business and we're doing it right

stiff a bank for 150 000 - 250 000 for a beginner home
you are a deadbeat and should be hammered by everyone including liberals since you failed and got tricked by the loan officer
shame on you!

working and middle class get indoctrinated that 'stiffing a bank' is bad
rich get taught 'it's good business when needed'

[saras]

14. and stiff a bank for $200 and your entire life will be ruined...

[w0nderer]

32. stiff a working man out of twice that and wealthy will

laugh and tell you to go to court knowing full well that to collect the money
will run more than it's worth both in costs and in lost income

try to recover that money and your life will be ruined too

very interesting how the rule set differs
have money, then it's ok to stiff people (especially people without money)
don't have money, then it's not ok (especially when done towards your 'betters')

[Exilednight]

35. Owe the bank $250,000 and that's your problem. Owe the bank $35 million and that's their problem.

[Honeycombe8]

21. Huckabee? nt

[No Elephants]

27. Meh. Only one pool? The people staying at the other end of the place have to walk way too far,

just to take a swim. Hope they at least get golf carts.

Speaking of which, no golf course? Not even a 9 holer?

No tennis courts?

Pffft.

[Name removed]

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[Name removed]

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[Name removed]

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[LuvNewcastle]

8. It won't last long. I'm surprised it got this far.

Whoever has allowed it to continue this long had better watch his ass.

[Firebrand Gary]

10. Bingo....

[fascisthunter]

15. no shit

[Name removed]

9. Deleted sub-thread

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[The Backlash Cometh]

13. Who knew?

[fascisthunter]

17. No Surprise considering their Government is Right Wing

[Honeycombe8]

22. Banks doing something doesn't necessarily mean the govt was in on it. nt

[butterfly77]

18. With the help of many ...

In the house and senate. Netanyhu is a POS and a crook.

[tropicanarose]

19. this is repulsive.

[Harmony Blue]

20. This saddens me

because it feels like the winds of destiny are propelling the U.S. and Israel in opposite directions. :(

[Honeycombe8]

23. I fear you're right. This might be the split that the Republicans have been

looking and waiting for, for so long.

Without the Jewish vote, the Democratic Party can't win. Not that that's the ONLY reason to want the Jewish vote. Jewish people are traditionally Democratic for a good reason. Still...

I don't support turning a blind eye to tax evasion, esp. in these times, when we need the revenue. But I hate to see this split the two countries even more.

[aquart]

25. Oh, those Jews. Taking profits from the deserving Swiss.

How horrified we are. How unhorrified, how ho-hum we were with decades of deliberate Swiss deceit. But now that it's the JEWS!!!!!....

Well, you just always knew, didn't you?

[boppers]

26. Wow, Radioactive thread.

Who knew that Jews used... banks?

[nadinbrzezinski]

28. Oh lord

:popcorn:

If they are there, this is pretty much GLOBAL

[cali]

29. predictably this thread has brought out some very ugly bigotry.

[Lil Missy]

30. US can recoup the lost revenue by cutting off aid to Israel. n/t

[jerseyjack]

31. Anti-Semetic !

:sarcasm:

[cali]

36. it's anti-semitic, dear. do learn to spell the words you use.

and no, the op isn't, but there damn well are some anti-semitic comments. duh.

[malaise]

34. Duh!!! n/t

[cali]

37. huh?

[Swede]

41. It's the juice!

The juice I tell ya!

[cali]

42. the number of deleted posts in this thread says it all- and it doesn't say anything

good.

[Historic NY]

38. They always say follow the money...