Bagios was arrested earlier. In the hearing on the complaint, the magistrate judge held that there was probable cause to charge Bagios and required a $500,000 corporate surety bond and $150,000 cash bond.
While at UBS, Bagios is alleged to have conspired with Renzo Gadola, who previously pled (see here) and gave incriminating information on Bagios. Kevin Downing is reported to have represented by telephone during the hearing that "Bagios and Gadola worked together in a UBS unit focused on helping American tax evaders." Also reported is that DOJ officials represented that "they had reached out to Bagios to see if he would cooperate with ongoing tax fraud investigations but said he had not responded."
The Manner and Means alleged in the affidavit supporting the conspiracy are:
MANNER AND MEANS USED TO CARRY OUT THE CONSPIRACYBloomberg reports:
The manner and means by which the conspiracy was sought to be accomplished included, among others, the following:
19. According to the Statement of Facts entered into by UBS and according to information provided by Renzo Gadola, it was a part and an object of the conspiracy that CHRISTOS BAGIOS and others would and did market undeclared Swiss bank accounts and Swiss bank secrecy to wealthy United States clients who were interested in attempting to evade United States income taxes.
20. According to the Statement of Facts entered into by UBS and according to information provided by Renzo Gadola, it was further a part of the conspiracy that CHRISTOS BAGIOS and others would and did travel to the United States to provide investment advice to United States clients and to conduct banking with United States clients. CHRISTOS BAGIOS and others would and did conduct banking with United States clients with undeclared accounts from Switzerland and elsewhere via mailings, emails, and telephone calls to and from the United States.
21. According to the Statement of Facts entered into by UBS and according to information provided by Renzo Gadola, it was further a part of the conspiracy that CHRISTOS BAGIOS and others would and did assist United States clients in concealing assets and income from the United States government, including the IRS.
22. It was further a part of the conspiracy that CHRISTOS BAGIOS and others would and did invite United States clients with undeclared accounts to attend UBS marketing events at Art Basel in Miami, Florida.
“He doesn’t understand what he’s accused of doing wrong,” Arthur Greenspan, a lawyer for Bagios, told the judge yesterday. “He doesn’t believe he did anything wrong. He doesn’t believe that he aided tax evaders.”One thing I refocused on in reading the articles were Credit Suisse's claims (i) that it was cooperating in the investigation of the Credit Suisse bankers previously indicted and (ii) that it was not a target. I commented on that target business in the blog (including comments) entitled "More on Credit Suisse and Its Enablers," so I won't discuss further here. But the business about cooperating in the investigation of the four who have been indicted is interesting. How about the overall investigation which certainly is broader in scope than the 4 Credit Suisse persons who have been indicted? Does Credit Suisse's cooperation extend that far? What we are seeing is the same phenomenon that occurs regularly in the white collar crime context (including tax) where employees doing the entity's bidding are served up to protect the entity. (Think KPMG.) If that is the game that is being played, why would not some Swiss bankers want to come to the Government first to negotiate the best deal possible (perhaps NPA and perhaps even some whistleblower rewards, although the two may be inconsistent) before their banks turn on them?
Westlaw / Reuters