Eight Offshore Banks Probed in U.S. Over Tax Rules (Bloomberg)

[chill_wind]

Eight Offshore Banks Probed in U.S. Over Tax Rules
David Voreacos - Sep 20, 2011

Eight offshore banks are under federal grand jury investigation for facilitating tax evasion by U.S. citizens as part of a probe the Justice Department said has dealt “fabled Swiss bank secrecy a devastating blow.”

The department disclosed the probes on a section of its website detailing the Tax Division’s Offshore Compliance Initiative. In 2009, prosecutors charged UBS AG (UBSN), the largest Swiss bank, with aiding tax evasion by U.S. clients. UBS avoided prosecution by paying $780 million, admitting it fostered tax evasion, and giving the U.S. Internal Revenue Service data on more than 250 accounts. It later turned over data on another 4,450 accounts.

Prosecutors opened 150 grand jury investigations of offshore-banking clients, charging 30 people, and indicting 13 other people who facilitated the hiding of assets offshore, according to the website.

“In addition, grand jury investigations have been opened into eight additional offshore banks across the world,” according to the website. “The outcome cannot be measured in litigation results alone. This enforcement effort has dealt fabled Swiss bank secrecy a devastating blow.

more: http://www.bloomberg.com/news/2011-09-20/eight-offshore-banks-under-grand-jury-investigation-over-taxes-u-s-says.html

see also the internal link:

http://www.justice.gov/tax/offshore_compliance_intiative.htm

[leveymg]

1. They only indicted 13 out of 4700 secret Swiss account holders?

What was the point in having a Swiss key account if the income was reported?

[chill_wind]

2. Reuters- interesting observation

"It is rare for the existence of pending grand jury probes to be made public, and the status of the investigations is not clear. The Justice Department did not immediately return a call seeking comment on Tuesday.

According to the department's website, about 150 grand jury investigations of offshore banking clients have been initiated. Charges have been brought in 30 cases, resulting in two convictions and 24 guilty pleas. Four cases await trial.


(snip)

The U.S. Department of Justice revealed the probes on its website on a page discussing its tax division's Offshore Compliance Initiative. It did not identify the banks facing grand jury probes."

more: http://in.reuters.com/article/2011/09/20/offshorebanks-idINS1E78J0A120110920