Ex-UBS banker set to plead guilty in tax evasion case

[maddezmom]

Source: AP

MIAMI (AP) A former UBS executive is scheduled to plead guilty next month in a U.S. tax case that is part of a wide-ranging probe into whether the Swiss banking giant helped wealthy clients hide assets and evade taxes.

Federal prosecutors announced Thursday that a change of plea hearing has been set June 9 for 43-year-old Bradley Birkenfeld. Birkenfeld had previously pleaded not guilty to conspiring to defraud the United States, which carries a potential five-year prison term.

It wasn't immediately clear if Birkenfeld would plead to that charge or something else, or whether he had worked out a plea agreement which is typically the case that includes a promise to cooperate with investigators. Such cooperation can result in a more lenient prison sentence.

A spokeswoman for U.S. Attorney R. Alexander Acosta declined further comment. Birkenfeld's attorney, Peter Raben, did not immediately respond to telephone and e-mail messages.

The hearing is set in federal court in Fort Lauderdale before U.S. District Judge William Zloch. A notice issued by the court said Zloch ''will ask for a full confession'' at the hearing.



Read more: http://cbs4.com/floridawire/22.0.html?type=local&state=FL&category=n&filename=FL--UBSBanker-Indicte.xml

[bonito]

1. UBS running scared as well

http://www.ft.com/cms/s/060c5c38-2c17-11dd-9861-000077b07658,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F060c5c38-2c17-11dd-9861-000077b07658.html%3Fnclick_check%3D1&_i_referer=http%3A%2F%2Fwww.reddit.com%2F&nclick_check=1

[maddezmom]

2. here's an earlier thread I posted

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3330207&mesg_id=3330207

McCain's guy Phil Gramm is connected to this company as well.

[bonito]

3. These last eight years just boggles the mind

The only good of this administration has been worth is to wake up citizens to the fact that when rely on government to take care of the general welfare of the nation it won't be done, there are always special interests with plenty of money caging the playing field for their own benefit, and the only way to insure Justice is to be involved, I think they have succeeded in that, even though it will A hard tide to turn.

[Robbien]

4. Ex-UBS Banker Agrees to Plead Guilty in U.S. Tax Evasion Case (Bank helped the rich evade US taxes)

Source: Bloomberg

May 30 (Bloomberg) -- A former UBS AG banker has agreed to plead guilty next month in a U.S. tax evasion case, signaling that he is cooperating with a Justice Department investigation of the biggest Swiss bank.

Bradley Birkenfeld, who worked in the firm's private banking division, scheduled a ``change of plea'' hearing for June 9 in federal court in Fort Lauderdale, Florida, according to court papers. The filing notes that the judge ``will ask for a full confession.''

Birkenfeld had pleaded not guilty earlier this month after he was indicted with Mario Staggl of Liechtenstein. Staggl is a fugitive, prosecutors have said.

The case is part of a growing U.S. investigation into whether UBS helped wealthy clients avoid paying taxes. The probe has added to the trouble swirling around the bank, which has also been hit hard by the subprime loan crisis.

In agreeing to plead guilty, Birkenfeld likely will help prosecutors and identify UBS customers who shielded assets to escape paying income taxes, said Eileen O'Connor, former head of the Justice Department's tax division.

Read more: http://www.bloomberg.com/apps/news?pid=20601103&sid=aLY7o1pp2TFE&refer=us

---

The guy Birkenfeld got caught helping was a man who is number 236 on the Forbes Magazine list of the 400 wealthiest Americans. The guy is worth $1.7 Billion. The billionaire was sentenced to probation, 120 hours of community service and a $3,500 fine in April.

Taxes evaded was $52 million.

[Captain Angry]

5. Sounds like #236 made an awesome investment.

That's probably 5 hours a week for 6 months. He'll put on overalls and spear trash or paint a building. In the meantime, I'm sure there will be a first offender with less than an ounce of drugs that gets 30-180 days in jail.

[Trillo]

6. Or something even more mundane.

A lifetime spent toiling for peanuts, with no disposable income, just barely able to afford food, clothing, shelter, and taxes.

But for #236, it appears the carpet of mercy is unrolled.

[lxlxlxl]

7. There is another "under the radar" story from a few months back

Look into the German investigation of I think Lichenstein, there is a great story about a whistleblower walking out with a DVD of information on tax evaders in the EU. He was offered $4M Euros for his cooperation, which is really the only way to break up these billon dollar tax shelters. The important thing that may be lost on people that do not follow this type of news is that tax evasion at this level destroys social programs of any state. When the Repugs cry about not having money for social programs, then ask them how much they care about tax evasion. If its not Wesley Snipes, then they dont seem to think it is a priority.

[salin]

9. Privatize the profits - socialize the costs... and then evade paying the bill

the credo in action of the contemporary GOP. It is even worse, I believe, in corporate tax sheltering. Haliburton has big subsidiaries whose headquarters are filed to be outside ofthe US in tax havens - but whose work is out of Houston - all while making billions off of the government. It is obscene.

[salin]

8. Seemed so small a penalty, I had to read the article...

and still it is a small penalty - but also he did have to repay the taxes plus interest and penalties (though the size of the penalties is not mentioned).

I would bet that if a few rocks were turned over among the GOPs big donor base a whole lot of tax evasion would be found.

[Robbien]

11. The penalty was for the act of fraud, not the amount

Usually the IRS throws anyone into the Federal Penitentiary when they find deliberate fraud. This rich guy is sentenced to picking up trash along the roadside for a few months.

[dipsydoodle]

10. The penalty should be increased substantially

for #236 & Co. The French knew how to treat such people.