Former Credit Suisse AG Bankers Avoid Five-Year Prison Sentence in U.S. Tax Evasion Case After Cooperating with DOJ

30th March 2015

Two former Credit Suisse AG bankers (who are both Swiss residents-one of whom is 72 years old), plead guilty to helping Americans evade taxes in a criminal case pending in Virginia. They are among eight former employees facing U.S. tax-evasion charges in Virginia case since 2011. They will avoid prison time, remain under probation for five years and pay US $100,000 plus fines after cooperating in the U.S. Department of Justice case against Credit Suisse, to secure DOJ’s first guilty plea against a financial institution in over ten years. One of these defendants admitted to helping U.S. account holders funnel money through shell companies, secret accounts and foundations in an effort to conceal them from tax authorities. The DOJ considers the remaining defendants fugitives.

Last May, Credit Suisse pleaded guilty to “knowingly and willfully” helping thousands of U.S. clients open accounts and hide their income from the IRS and agreed to pay $2.6 billion.

Since 2009, more than 100 account holders have been charged by the Department of Justice with having undeclared bank accounts.