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US Charges Swiss Bank with Enabling Tax Fraud (UBS)

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By Paul Ausick Published

The US Department of Justice has indicted Switzerland’s oldest private bank, Wegelin founded in 1741, with fraud and conspiracy for enabling US customers to hide at least $1.2 billion in deposits from US taxation. This is the first such prosecution in US history.

Wegelin, which operates only in Switzerland, used UBS AG (NYSE: UBS) as its correspondent bank. The US DoJ seized $16 million from UBS in a separate civil forfeiture case according to a report from Reuters.

There are 10 other banks being investigated by the DoJ on similar charges that threaten to strike down the long-held tradition of secrecy accorded to Swiss banks.

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About the Author Paul Ausick →

Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

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