UBS whistleblower hopes for stiff penalty as France tax evasion trial begins

Record ID: 1359743

  • Title: UBS whistleblower hopes for stiff penalty as France tax evasion trial begins
  • Date: 8th October 2018
  • Summary: GENEVA, SWITZERLAND (FILE) (REUTERS) VARIOUS OF EXTERIORS OF UBS BRANCH
  • Embargoed: 22nd October 2018 09:43
  • Keywords: banking France Bradley Birkenfeld money laundering investigation Swiss bank whistleblower UBS tax fraud
  • Location: PARIS, FRANCE / GENEVA SWITZERLAND
  • City: PARIS, FRANCE / GENEVA SWITZERLAND
  • Country: France
  • Topics: Crime/Law/Justice,Judicial Process/Court Cases/Court Decisions
  • Reuters ID: LVA002917F29Z
  • Aspect Ratio: 16:9
  • Story Text: Former UBS Group AG employee Bradley Birkenfeld said he hoped for a stiff penalty as the Swiss bank, its French unit and six top executives go on trial on Monday (October 8) after a long-running investigation into allegations they helped wealthy clients avoid taxes in France.
    The largest Swiss bank risks fines of up to 5 billion euros ($5.76 billion) and its executives jail terms of up to 10 years.
    After seven years of investigation and aborted settlement negotiations, UBS faces charges of aggravated tax fraud and money laundering as well as illegally soliciting clients in France.
    UBS's trial in France follows a similar judicial process in the United States where the bank accepted to pay $780 million in a settlement. In Germany, UBS was fined 300 million euros.
    The investigation into UBS in the United States began after Birkenfeld, who worked at the bank for four years, revealed a scheme to funnel wealthy customers' cash from the United States to Switzerland bypassing the U.S. taxman.
    The whistleblower told Reuters he spoke separately to French investigators. Even though he is not due to testify in court in Paris, he will attend the hearings.
    Birkenfeld served a two and half year prison sentence after the U.S. government said he withheld other information following the exposure of the UBS tax fraud case.
    He was released from federal prison in August 2012 and a month later U.S. tax authorities awarded him $104 million.
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