[MDyDinanM]

I know this story is from 2010, but I was watching MSNBC last night and they featured a story on Bradley Birkenfeld who was a former Banking Executive for the Swiss Bank UBS who became a whistle-blower. He aided the IRS/Dept of Justice in exposing US Citizens for tax evasion by hiding funds in Switzerland. He is currently in jail.

Cliff notes:

-Bradley Birkenfeld was a UBS Banking Executive since 2001

-He personally engaged in illegal activities condoned by UBS Bank including buying diamonds with illicit money in Europe and then spirited them to California stuffed in a toothpaste tube, all part of an effort to conceal $200 million in assets on which his client — the Russia-born, California-based real estate mogul Igor Olenicoff — owed $7.2 million in U.S. taxes

-When he supposedly realized that actual practices were violating stated bank policy, he raised his concerns internally; after being rebuffed and later finding himself in a dispute over a bonus payment, he decided to expose the wrongdoing.

-He voluntarily approached the Feds in 2007 offering details on the illegal tax shelters run by UBS. After talking with the IRS, Justice and the Securities and Exchange Commission and appearing before the Senate — and being told on at least one occasion by DOJ officials that they were not looking to prosecute him — Birkenfeld was arrested in June 2008 as he returned from Switzerland

-His information on the Swiss Bank practices led to the IRS/Feds to expose $4,450 US Citizens suspected of tax evasion, collect $780 Million fine from UBS, and the agreement that UBS and Switzerland would essentially exit from the "tax sheltering business" for US Citizens in fear of sanctions against them and a freeze of assets in the US (not being able to conduct business in the US anymore).

-Experts/Feds agree that he was instrumental in making the Feds Case, and if not for him, the case wouldn't have been successful.

-He is currently in Jail, serving a 40 month sentence for pleading guilty on 1 count of Fraud Conspiracy. Justice officials claim that Birkenfeld was not completely forthcoming about his own dealings with particular clients, especially his biggest, the billionaire Olenicoff. Even as he was talking to the feds, they say, Birkenfeld was secretly advising the real estate mogul to move his money from UBS to Liechtenstein banks

http://www.time.com/time/business/ar...928897,00.html

http://www.usatoday.com/money/perfi/...t-prison_N.htm

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Thoughts? Does he deserve to be in jail? Feds being heavy handed? should he get amnesty?

Also to point out, he is the only one in jail at this point out of this ordeal and of 4,450 Americans suspected of tax evasion.

[stylinexpat]

Here in Taiwan there are thousands of stories of where people went to triads for help to help them with something only to have triad turn on them after. sort of like raising a snake to where you never know when it will turn against you. Best to keep away from all evil.

[Hisam135i]

A crime is a crime, cannot change the past by doing good in the future. Sure saying the truth was a good thing of him to do, but it doesn't change the fact of what he did. Thats like a little kid doing something wrong then telling his mother hoping not to get in trouble.. the kid will get in trouble..

[MDyDinanM]

I'm siding with that he should be in jail. I'm still reading more about it and his alleged continued dealings with his clients while talking to the Feds.

After further reading the article, it points out that this sets a bad precedent for any future whistle-blowers that come forward to help the Govt. Even if there hands were a little dirty. (not saying it was wrong or right)

It also points out that Whistle-blowers for the Govt are entitled to a percentage of re-claimed funds (in this case, potentially over a billion dollars in recovered tax revenue would mean millions for Bradley). However, the Govt doesn't think he qualifies and Bradley is going to pursue that issue in court. Not sure if he did it for selfish reasons to claim the award for whistle-blowers since he probably knew it would mean millions for him.

I'm curious to see how it pans out

[achien]

He committed the crime, he should serve the time.

He may have got off with a lighter sentence in return for his "co-operation".

Originally Posted by mdyaman

I know this story is from 2010, but I was watching MSNBC last night and they featured a story on Bradley Birkenfeld who was a former Banking Executive for the Swiss Bank UBS who became a whistle-blower. He aided the IRS/Dept of Justice in exposing US Citizens for tax evasion by hiding funds in Switzerland. He is currently in jail.

Cliff notes:



http://www.time.com/time/business/ar...928897,00.html

http://www.usatoday.com/money/perfi/...t-prison_N.htm

-------------

Thoughts? Does he deserve to be in jail? Feds being heavy handed? should he get amnesty?

Also to point out, he is the only one in jail at this point out of this ordeal and of 4,450 Americans suspected of tax evasion.

[MDyDinanM]

Originally Posted by achien

He committed the crime, he should serve the time.

He may have got off with a lighter sentence in return for his full "co-operation".

Fixed