Tuesday, May 20, 2014

Credit Suisse Cuts Deal With US DoJ & They Spin Off Vulnerable Units

We had previously postedAre You A Credit Suisse Client? You May Really Want to Make Your Voluntary Disclosure NOW!

where we discussed that the founder of a Swiss trust pleaded guilty to helping Americans evade taxes and said Credit Suisse Group AG was involved in the scheme, adding to its pressure as it tries to resolve its U.S. criminal probe.
Josef Dorig, 72, was indicted in 2011 with seven Credit Suisse bankers on a charge of conspiring to hide $4 billion from the IRS. The U.S. told Credit Suisse then that it was a target of the probe. Dorig has been cooperating with prosecutors probing Zurich-based Credit Suisse, the largest of 14 Swiss banks under U.S. criminal investigation amid a crackdown on offshore tax evasion. The bank has said it’s trying to negotiate a resolution with the U.S. Former Credit Suisse banker Andreas Bachmann, who pleaded guilty on March 12, also is cooperating in the probe. 
Now various news agencies are reporting that Credit Suisse has settled its tax evasion dispute with the US Department of Justice for USD 2.5 billion, an amount that dwarfs even the USD 780 million penalty paid by its chief rival UBS in 2009.

Credit Suisse will pay financial penalties to the U.S. Department of Justice, the Internal Revenue Service, the Federal Reserve and the New York State Department of Financial Services to settle the charges. It had already paid $200 million to the Securities and Exchange Commission.

The New York Department of Financial Services said it had determined not to revoke the bank's license in the state.

Also, it is rumoured that the banks's chief executive Brady Dougan is under pressure to resign.

Prior to this announcement, Credit Suisse's specific businesses, which were threatened with US prosecutions for aiding tax evasion, were moved into a separate bank specially created for the purpose of separating the affected units form its other lines of Business. CS International Advisors AG, which is wholly owned by Credit Suisse, was funded with SFR21 million of capital to cover its 1,040 active accounts, 43,000 closed accounts and 1,144 dormant accounts.

As is customary in these settlements, Credit Suisse will  most likely be required to Turn Over the Names of All of its US Depositors!

US taxpayers who have undeclared accounts in Credit Suisse or other Swiss banks, may now want to consider applying for the US Offshore Voluntary Disclosure Program (OVDP), which sets a limit to the penalties imposed on them by the Internal Revenue Service (IRS) for failing to declare foreign assets and earnings.

Once either:
  • The Swiss Banks disclose an account holder's name to the IRS under the non prosecution agreement or 
  • Mr. Andreas Bachmann or Josef Dorig or Markus Walder or Susanne Ruegg-Meier or Roger Schaerer discloses an account holder's name to the IRS or
  • Any 1 of the other 11 Credit Suisse Bankers, who were indicted in 2011 along with Mr. Dorig, discloses an account holder's name to the IRS 
the OVDP election is no longer available to that account holder!!!
Taxpayers Who Wish To Take Advantage
Of The OVDP Must Act Quickly! 
Have Un-Reported Income From a Swiss Bank?
Value Your Freedom?

Contact the Tax Lawyers at
Marini & Associates, P.A.
for a FREE Tax Consultation Contact US at 
or Toll Free at 888-8TaxAid (888 882-9243).





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