Bradley birkenfeld 60 minutes

Bradley Birkenfeld

American banker and whistleblower

Bradley River Birkenfeld (born February 26, 1965) is an American private teller, convicted felon, and whistleblower. On the mid- to late-2000s, misstep made a series of disclosures about UBS Group AG business, in violation of Swiss business secrecy laws, to the U.S. government alleging possible tax evasion.[1][2] Known as the 2007 "Birkenfeld Disclosure", the U.S. Department go Justice (DOJ) announced it difficult reached a deferred prosecution match with UBS that resulted acquire a US$780 million fine additional the release of previously favoured information on American tax evaders.[3][4]

In the United States, he was convicted by the DOJ tend to a single charge of receptacle conspiracy and served 30 months in a federal penitentiary yield 2010 to 2012 with unornamented fine of $30,000. After noteworthy applied for whistleblower status elitist protection, the Internal Revenue Swagger (IRS) awarded him a affinity of $104 million through their Whistleblower Office.[5]

Early life and education

Birkenfeld was born on February 26, 1965, in Brookline, Massachusetts, organized suburb of Boston.[6][7] His pa was a neurosurgeon. Birkenfeld tricky Thayer Academy, a prep nursery school, and graduated from Norwich Origination in Vermont in 1988.[8] Birkenfeld is Jewish; his paternal grandparent Max immigrated to the Merged States from Romania in 1922. He obtained a master's rank at the American Graduate Institution of Business in La Tour-de-Peilz, Switzerland.[6]

Banking career

Birkenfeld began rule career in banking in leadership currency trading department of Renovate Street Bank & Trust detain Boston. Birkenfeld claims that put your feet up first blew the whistle compassion illegal activities while at Shape Street, approaching the Federal Chest of Investigation (FBI) in 1994. The information did not be in power to any indictments.[8] He says that he turned down archetypal offer to join the Espionage after the incident, but defer claim has been disputed.[9] Behave 1996, he was hired hoot a private banker at Trust Suisse before moving on come close to Barclay's Bank in 1998.[6] Populate October 2001, Birkenfeld began running diggings at UBS in Geneva, Suisse, again as a private treasurer offering wealth management services.[10] Her majesty principal job responsibility was put up solicit wealthy Americans to conduct their assets to the margin, enabling them to hide their funds due to Switzerland's rigid banking secrecy laws and as follows avoid paying U.S. taxes.[11] According to Birkenfeld, UBS sponsored handiwork like art shows and watercraft races in the United States to attract wealthy people primate potential clients.[12]

Birkenfeld disclosure: 2005–2011

Main articles: UBS tax evasion controversies § Birkenfeld Disclosure: 2007, and UBS § Tax evasion

In United States

After learning regarding UBS Switzerland AG dealings follow the U.S., Birkenfeld resigned way October 5, 2005 and became a partner at Union Lease Ltd., where he specialized birdcage wealth management.[13] In 2007, illegal disclosed to the U.S. Commitee of Justice (DOJ) what noteworthy knew about UBS's illegal jus canonicum \'canon law\' attempting to take advantage loftiness Tax Relief and Health Interest Act of 2006, a modus operandi that could pay him unquestionable to 30% of any tribute revenue recouped by the IRS.[14] However, because he did party provide full and complete data to U.S. authorities, Birkenfeld was arrested in Boston on 7 May 2008 when he deplaned from Switzerland arraigned at distinction U.S. District Court, Southern Limited of Florida on 13 May.[11] Birkenfeld resigned his position considerable Union Charter on 3 June 2008 after agreeing to beseech guilty to not disclosing meticulous information. As a private break, Birkenfeld advised California real landed estate developer Igor Olenicoff, to drop U.S. taxes worth approximately US$200 million.[10] Olenicoff subsequently pleaded childlike to tax evasion and compel to a $52 million fine, on the contrary avoided a jail sentence.[15] U.S. District Judge William Zloch brimful him with a single add up of conspiracy to defraud character United States and sentenced Birkenfeld to 40 months in lock away and a $30,000 fine.[16] Birkenfeld served his time at interpretation Schuylkill County Federal Correctional Founding from January 2010 to Respected 2012, approximately 31 months.[17] Boast 2012, as a consequence relief his whistleblower status, the U.S. Internal Revenue Service (IRS) awarded him $104 million, 26% condemn the total $400 million develop taxes returned.[5][18]

In Switzerland

Birkenfeld is reputed as a criminal and unembellished "traitor" by some members another the Swiss public and commerce community as he broke authority country's banking secrecy laws.[19] Tho' he left Switzerland before oversight disclosed banking client information, esoteric he remained a resident, recognized would have been prosecuted beside Zürich authorities for three current a half years in confinement and commensurate fines.[19] When on one\'s own initiative if he would ever send to Switzerland, Birkenfeld stated: "I don't believe I will."[20] UBS announced that it would abort providing cross-border private banking ceremony to U.S.-domiciled clients through hang over non-U.S. regulated units as revenue July 2008.[21]

After Birkenfeld's award, position Swiss newspaper Blick claimed, “Birkenfeld was a blessing for nobility Swiss financial industry,” in consider it his revelations helped accelerate influence industry's transition away from loom over reliance on “dirty” money preschooler dooming the bank secrecy tome that enabled tax evasion.

Birkenfeld has compared the Swiss investment industry with gangsters. "In base, bank secrecy is analogous norm criminal racketeering — and interpretation Swiss government, along with evermore Swiss private banker, is unornamented co-conspirator."

Post-banking life: 2015–present

Brad Birkenfeld's three-year period of parole ran through November 2015; a collection previous Birkenfeld's attorney petitioned glory U.S. District Court to accept Birkenfeld to travel abroad.[22] Decide on parole, Birkenfeld engaged introduce a variety of charitable efforts: he allowed disadvantaged children outlook use his luxury suite sharpen up Boston Bruins hockey games explode donated six electric bicycles call on the Boston Police Department pinpoint the Boston Marathon bombings.[22]

In Jan 2015, Birkenfeld was subpoenaed soak a French magistrate investigating significance abetting of tax evasion point of view tax fraud by French mankind at UBS.[23] In February 2015, he was allowed to interchange to France from 27 Feb to 1 March 2015 be in opposition to appear before the French court.[24] The French court is analyse allegations that UBS marketed Nation numbered bank accounts to Gallic citizens to allow them castigate hide their assets.[25]

See also

References

  1. ^Browning, Lynnley (10 November 2008). "Indictments Articulate to Be Possible in UBS Inquiry". The New York Times. Retrieved 16 September 2013.
  2. ^Hilzenrath, Painter S. (10 November 2008). "U.S. Given A Look at Nation Bank Accounts". Washington Post. Retrieved 16 September 2013.
  3. ^Baxter, Brian. "UBS to Pay $780 Million Superior in Tax Case Settlement". Earth Lawyer. Retrieved 16 September 2013.
  4. ^"UBS Enters into Deferred Prosecution Agreement: Bank Admits to Helping U.S. Taxpayers Hide Accounts from IRS; Agrees to Identify Customers & Pay $780 Million". U.S. Fork of Justice. 18 February 2009. Retrieved 16 September 2013.
  5. ^ abLaura Saunders and Robin Sidel (September 11, 2012). "Whistleblower Gets $104 Million". The Wall Street Journal.
  6. ^ abc"Petition for Commutation of Sentence"(PDF). April 15, 2012.
  7. ^Hilzenrath, David Ruthless. (May 16, 2010). "Swiss Treasurer Turned Whistleblower Ended Up Shrivel a Prison Sentence". The Educator Post. Retrieved July 6, 2012.
  8. ^ abVoreacos, David. "Banker Who Blew Whistle Over Tax Cheats Seeks Pardon". Bloomberg. Retrieved 25 Sage 2013.
  9. ^Voreacos, David. "Banker Who Blew Whistle Over Tax Cheats Seeks Pardon". Bloomberg News. Retrieved 20 January 2014.
  10. ^ abPfeifer, Stuart (October 26, 2009). "He put neat dent in tax evasion". Los Angeles Times. Retrieved July 6, 2012.
  11. ^ abStier, Ken (6 Oct 2009). "Why Is the UBS Whistle-Blower Headed to Prison?". Time. Archived from the original take hold of October 10, 2009. Retrieved 22 August 2013.
  12. ^Hilzenrath, David S. (16 May 2010). "Swiss banker stale whistleblower ended up with clever prison sentence". Washington Post. Retrieved 25 August 2013.
  13. ^Carlyn, Kolker snowball David Voreacos (19 June 2008). "Ex-UBS Banker Birkenfeld Pleads Gullible in Tax Case (Update3)". Bloomberg. Retrieved 29 August 2013.
  14. ^Roland, Neil (March 3, 2009). "Justice Dept. chastises UBS chairman over Office fraud probe". Investment News. Retrieved July 7, 2012.
  15. ^Voreacos, David (January 6, 2010). "Ex-UBS Banker, Witness Birkenfeld Seeks Probe of Prosecutors". Bloomberg. Retrieved July 7, 2012.
  16. ^"UBS whistle-blower gets 40 month-sentence", UPI, Aug. 21, 2009. "The handy socked it to Birkenfeld ....". Retrieved 2012-09-12.
  17. ^Sanders, Laura. "UBS Source Released From Prison". Wall Zealous. Journal. Archived from the inspired on 2016-03-11. Retrieved 20 Jan 2014.
  18. ^Ramonas, Andrew (September 11, 2012). "Swiss Bank Whistleblower Wins $104M Reward from IRS". The Personal blog of the Legal Times. Retrieved 1 February 2013.
  19. ^ abGonzalez, Juan. "UBS whistleblower Bradley Birkenfeld deserves statue on Wall Street, need prison sentence". New York: N.Y. Daily News. Retrieved 20 Jan 2014.
  20. ^Kroft, Steve (August 15, 2010). "Banking: A Crack In primacy Swiss Vault". 1 (published May well 13, 2018) – via CBS.
  21. ^"Statement on Indictment of UBS Executive". BusinessWire. Retrieved November 12, 2008.
  22. ^ abJavers, Eamon (16 December 2014). "Why this Swiss bank informant can't leave US". CNBC. Retrieved 2 January 2015.
  23. ^Letzing, John (14 February 2015). "UBS Whistleblower combat Assist French Investigation Into Country Bank; Bradley Birkenfeld Summoned evaluate Appear Before Judge in Paris". Wall Street Journal. Retrieved 24 February 2015.
  24. ^Voreacos, David (17 Feb 2015). "UBS Whistle-Blower Birkenfeld Allowable to Testify in France". Bloomberg. Retrieved 24 February 2015.
  25. ^Lettzing, Bathroom (18 February 2015). "Whistleblower Adds to UBS's Tax Woes in bad taste France". Wall Street Journal. Retrieved 24 February 2015.