BBC is non-stop news this morning - UBS guilty of hiding

[malaise]

secret accounts for clients to facilitate hiding from US taxes.
Where in the world is Phil Gramm?

http://news.bbc.co.uk/2/hi/business/7898372.stm
<snip>
UBS has agreed to pay $780m (£549m) to the US government to settle allegations that it defrauded US tax authorities, the Justice Department has said.

In an unprecedented move, the Swiss banking giant has also agreed to hand over the identities and account information of certain US clients.

UBS was accused of conspiring to create sham accounts to hide clients' assets.

In light of the bank's acknowledging responsibility, the Justice Department recommended dismissing the charge.

The deal was agreed in a federal court in Florida.

[grannie4peace]

1. JACKPOT!!!!

:hi:

[dipsydoodle]

2. I'm puzzled by

the constant reference to "certain US clients"

Makes it sound like Animal Farm with some more equal than others.

[acmavm]

4. I'm mixed on this shit. I don't know how much 'revealing' will be done.

<snip>

Under the deal, which was approved by a federal judge in Florida, the bank must also exit the cross-border business in the U.S., change many of its banking policies, appoint new executives to oversee its tax compliance, and hire an auditor approved by U.S. officials to ensure compliance with the agreement. In return, U.S. officials will not prosecute the bank on charges of conspiring to defraud the United States.

<snip>



n court filings unsealed yesterday, prosecutors alleged the bank's conduct began in 2000 shortly after it bought brokerage firm Paine Webber. At the time, UBS allegedly agreed to comply with regulations that required it to withhold income tax from U.S. clients who set up offshore accounts. However, prosecutors allege UBS helped U.S. clients set up nominee accounts, or "sham accounts," and moved the money around in order to evade tax reporting rules. According to the court filings, UBS had 60 managers in charge of the business and ran it out of several locations in Switzerland.

Prosecutors allege UBS officials aggressively marketed the service, making 3,800 trips to the U.S. in 2004 alone. UBS employees used encrypted laptops and other "counter-surveillance techniques" to conceal the identity of their clients. According to an agreed statement of facts filed in court, UBS had 20,000 U.S. clients with roughly $20-billion in total assets. Roughly 17,000 concealed their identity "and the existence of their UBS account from ."

"Many of these clients willfully failed to pay tax to the IRS on income earned on their UBS accounts."
-MORE-

http://business.theglobeandmail.com/servlet/story/RTGAM.20090218.wrubs19/BNStory/Business/home?cid=al_gam_mostview

[dipsydoodle]

7. Now turns out

that they have divulged 250 names out of 17000. WTF is going on ? Sounds like lip service to me.

[jimshoes]

9. Yes, why only a tiny fraction

of the names? Some people are more equal than others it seems.

[Kolesar]

3. IIRC, UBS was spunoff from the bankrupt Enron--Sen. Phil Gramm's "patron"

Gramm did not run for reelection to the Senate because he knew his opponent would raise the issue and slaughter him. That would have helped to illuminate this story. Enron were pioneers in manipulating markets. Talk about a missed opportunity. Gramm's withdrawl gave the worthless media a chance to bury the story.

addendum: story Wed evening in LBN http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3745771

[malaise]

5. Thanks for that link

Can't wait to see those names.
:hi:

[jimshoes]

6. Have they mentioned any names

yet? This could get interesting.

[KharmaTrain]

8. More Of "Why Daddy Went To Jail"

The deck of cards are collapsing all over and the real dirt is coming to light. Those exotic Swiss and offshore accounts don't seem so sexy anymore...especially if that money never really existed, you can't get your hands on it and now your name and financial history will be handed over to the feds. Talk about having spastic colon.

Yeah...where is Whinner Gramm these days? I just shudder at the thought that he'd be at the helm of the treasury had Gramps been elected. I'm hoping we find his name on a bunch of bogus accounts...he ends up in club fed like the racateer he's always been.

I wonder how much "Sir" Allen Stanford had in this scheme.

:hi: