U.S. crackdown on tax evaders forces Swiss bank to shut down

Mousey

Ueber Meister Mouse
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(Reuters) - The U.S. government has raised the stakes in its crackdown on Swiss banks through a hard-charging prosecution that has forced the closing of a 272-year-old Swiss firm for offering tax-evasion services to wealthy Americans.

Tax lawyers and former prosecutors said on Friday the closing of Wegelin & Co, Switzerland's oldest private bank, served as a stark warning for some Swiss banks under investigation, especially smaller firms such as Wegelin.

Wegelin, founded in 1741, said on Thursday it would shut its doors permanently after pleading guilty to an indictment charging it with helping Americans dodge taxes through secret accounts.

It was the first time the United States forced a foreign bank to close because of its sale of tax-evasion services.

"The Justice Department wanted a scalp to send a message to all the other banks, in particular the small cantonal and private banks," said Christopher Rizek, a tax lawyer at Caplin & Drysdale in Washington, D.C., and a senior former Treasury Department tax official.

Around a dozen banks are under criminal scrutiny by the Justice Department, including Credit Suisse AG , which disclosed last July it had received a target letter....
 

Seventh777

RIP Roy
Wow this is interesting, kinda puzzled though of how the USA has Jurisdiction over Switzerland?, makes me wander if both the UBS and Barclays will suffer the same fate when the Libor scandal goes to trial?.
 

Mousey

Ueber Meister Mouse
Wow this is interesting, kinda puzzled though of how the USA has Jurisdiction over Switzerland?, makes me wander if both the UBS and Barclays will suffer the same fate when the Libor scandal goes to trial?.
Just the same ol' 'big stinky gorilla in the living room' effect....
 

vinylweatherman

You type well loads
CAG
MM
Wow this is interesting, kinda puzzled though of how the USA has Jurisdiction over Switzerland?, makes me wander if both the UBS and Barclays will suffer the same fate when the Libor scandal goes to trial?.
It's the US, it thinks it has jurisdiction over the whole of the internet already, so why not the whole world. I suspect they are working on the jurisdiction where the crime took place, rather than that of the criminal. With online gambling, the "crime" takes place on US soil, at the home of the player. It would be the same with illegal tax schemes, with elements of the crime taking place on US soil because it is a US citizen being helped.

This move is likely to have popular support though, as the rest of us have to pay higher taxes because of the fewer wealthy people that get away with not paying their share. Remember, the wealthy have often benefitted from government funded schemes in order to create their wealth. Some RELY on tapping into government schemes in order to make money from them.

The UK government are trying similar tactics, and it is proving popular with the masses, many of whom want to see bankers hanged, drawn, and quartered.

The question is whether this will target companies, or the individuals behind them. One bank shutting down may be aimed at ensuring there is no active corporate entity left to answer charges if this goes to trial, leaving the US to either drop the case, or try going after former executives. They did this with Neteller, but it needed the former execs to stray onto US soil.
 

Seventh777

RIP Roy
It's the US, it thinks it has jurisdiction over the whole of the internet already, so why not the whole world. I suspect they are working on the jurisdiction where the crime took place, rather than that of the criminal. With online gambling, the "crime" takes place on US soil, at the home of the player. It would be the same with illegal tax schemes, with elements of the crime taking place on US soil because it is a US citizen being helped.

This move is likely to have popular support though, as the rest of us have to pay higher taxes because of the fewer wealthy people that get away with not paying their share. Remember, the wealthy have often benefitted from government funded schemes in order to create their wealth. Some RELY on tapping into government schemes in order to make money from them.

The UK government are trying similar tactics, and it is proving popular with the masses, many of whom want to see bankers hanged, drawn, and quartered.

The question is whether this will target companies, or the individuals behind them. One bank shutting down may be aimed at ensuring there is no active corporate entity left to answer charges if this goes to trial, leaving the US to either drop the case, or try going after former executives. They did this with Neteller, but it needed the former execs to stray onto US soil.
What is really needed here is a thorough investigation right the way to the top by trusty reliable independent investigators, the world market in general is so corrupt it's a breeding ground for deceit, underhand practices, insider trading. I think most people's jaws would drop to actually find out just how few own a majority of the worlds top brands, a world where deliberately bankrupting small companies makes the owners billions via derivatives and put options. What is needed here is full exposure of those bankers that own the banks in question and not just the puppets running them, and even more importantly how they got where they are today, all we are seeing here is some slight pruning of the trees, get the chainsaws out and do it properly ;).

Of course, nothing stirs public interest up more than seeing greedy rich bastards being done for tax evasion, top of this list is the Rothschild's banking cartel, here we go Panorama, grow some balls and take a look into their world, if a few bankers being done for tax evasion incites rage amongst the general public, wait till they hear what this lot have been doing the past 200+ years or so ;).
 

Seventh777

RIP Roy
Footnote:- There is a database listing 37 million companies that are the heart of the Stock Exchange, this has been whittled down by intense research to just 147 entities that between them own 40% of the entire stock market's wealth..........

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Like I stated - A few tax evasive cases and the Libor scandal is just a splash in the ocean, get to the source of banking related scandals and remove those in power and the world automatically becomes a better place to live.
 
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