Lack operates Lack & Partner Asset Management AG in Zurich and is a confederate of Renzo Gadola, previously indicted and blogged here.
As is the way with defraud / Klein conspiracy indictments, Lack's indictment is flowered up with a lot of detailed allegations of skullduggery presented as overt acts. These are just variations on the themes of how far the -- at least some -- Swiss bankers went to accommodate the U.S. clients' needs to hide their tax evasion (for a share of the ill-gotten gains, of course). For example, it is alleged that Lack solicited cash deposits in the U.S. in furtherance of the scheme and further failing to file the required Form 8300. Thus, the following allegation:
26. It was further a part of the conspiracy that defendant MARTIN LACK and his conspirators would and did assist United States customers with undeclared Swiss accounts at Cantonal Bank in structuring the transfer of funds, including cash, within the United States without disclosing such transfers to the United States government on a Form 8300 as required by law.It's all laid out in the 22 page indictment, so I won't go further into the details here.
The banks involved are UBS AG and a bank pseudonymed as "Cantonal Bank." Cantonal Bank is described as follows:
10. A bank that was an independent, incorporated public-law institution wholly owned by Base1 City Canton, Switzerland ("Cantonal Bank") provided cross-border banking services to U.S. customers. In 2000, Cantonal Bank entered into a Qualified Intermediary Agreement ("QI Agreement") with the IRS which commenced on January 1, 2001 and expired on December 31, 2006. The QI Agreement required Cantonal Bank to verify the identity and citizenship/domicile of its customers and to withhold and pay over to the IRS taxes on certain accounts beneficially owned by United States customers. On or about June 7, 2006, Cantonal Bank entered into the "Qualified Intermediary Agreement Renewal Instrument to effect the Second Agreement" ("QI Renewal Agreement") with the IRS, an agreement to renew the QI agreement for a term to run from January 1, 2007 through December 31, 2012. As part of the QI Renewal Agreement, Cantonal Bank declared that "it is currently in full compliance with the [QI Agreement] and intends to remain in full compliance."News reports indicate that bank is Basler Kantonalbank. The Tax Notes article, Randall Jackson, Former UBS Banker Indicted in Tax Evasion Case, 2011 TNT 149-5 (8/3/11), says: "Because cantonal banks are effectively state-owned entities, the involvement of Basler Kantonalbank adds a diplomatic aspect to the case."
An unindicted co-conspirator is alleged as follows:
11. Unindicted co-conspirator S.L. ("Swiss Banker S.L.") was a banker at Cantonal Bank's private banking office in Zurich, Switzerland, who assisted United States customers to open and maintain undeclared accounts at Cantonal Bank.The Tax Notes article cited above says: "S.L. is Stefano Longo, a private banker at Basler Kantonalbank's Zurich office and a member of the bank's management committee, according to an August 2 Reuters report."
I will update the spreadsheet and post it, hopefully this afternoon.
Note: This blog has been updated as of 8/3/11 @ 7:30am.
David Voreacos, Ex-UBS Banker Martin Lack Is Indicted in Tax Conspiracy Case (8/2/11).
Lynnley Browning, U.S. indicts ex-UBS banker for tax evasion services, Thomson Reuters News & Insight (8/2/11).