NyTimes.com reports – A Former UBSÂ banker was indicted on charges of helping an American real estate developer evade taxes.
The conspiracy indictment, accuses Bradley Birkenfeldthe , former banker, of helping the developer evade taxes on $200 million.Â The funds were held in bank accounts in Switzerland and Liechtenstein.
The developer was identified asÂ Igor Olenicoff,Â a billionaire, andÂ founder of Olen Properties.
The indictment is part of an American attempt to increase scrutiny of offshore tax transactions.Â It is oneÂ part of a widening federal investigation into UBS, and its private bank based in Zurich, and whether it helpedÂ wealthy clientsÂ evade taxes.
According to the indictment, the two men created fictitious trusts and bogusÂ offshore company structuresÂ to conceal the ownership and control of offshore assets.Â In addition, the indictment accuses them of also advising clients to destroy bank records and helping them file false tax returns.
“The two men and others made several trips to the United States to pitch tax plans that were intended to conceal American bank clientsâ€™ ownership of accounts in a Swiss bank, the indictment said.”
The plans that were pitched to US clients letÂ UBS avoid disclosure of certain income information to the Internal Revenue Service while also evading certain American tax requirements. The pitch hinged on the inpentrability of Swiss and Liechtenstein bank secrecy.
Mr. Olenicoff already pleaded guilty to charges ofÂ tax evasion and to lying on his tax returns, and agreed to pay back taxes totaling $52 million.Â