Bank : UBS and Wegelin
Guilt: By Plea Agreement - See prior blog entry on guilty plea: A New UBS Depositor Plea in SDNY (6/27/11), here.
Count(s) of Conviction: 3 - tax evasion
Maximum Possible Sentence: 15 years.
Sentence Imposed: 45 days.
Age at Sentencing: 82 years*
Tax Loss: $400,000 - $1,000,000 (Apparently this number was not more finitely calculated because this is a single Guideline tax loss range and would not change any of the sentencing calculations).
Civil income tax penalty: Civil Fraud Penalty (75%) agreed to in the plea agreement (see the prior blog), hence, given the tax loss, the civil fraud penalty would be between $300,000 and $750,000.
Restitution: ? (May not have been provided because the tax loss was not quantified sufficiently; the IRS will be able to quantify and collected the tax loss through regular tax processes.)
FBAR Penalty: $9.8 MM (FBAR penalty; 50% of highest balance for one year - see prior blog)
Court: SD NY
Judge: Castel, Kevin
* also with significant, perhaps age related, physical impairments.
Per the article below, Heller cooperated in the investigation of the 3 Wegelin related bankers. See my prior blog New Swiss Enabler Indictments - Bankers Related to UBS and, Allegedly, Wegelin (1/3/12), here.
This is a valuable lesson for all enablers -- be they attorneys, accountants, bankers or otherwise) -- in all contexts -- whether offshore or otherwise: the persons you serve may find it in their interest to turn on you. So, even if you are an innocent enable, a client may remember your role differently when it serves a purpose. Which reminds me of the old joke:
First man: I have a CPA do my income tax return.
Second man: Why do you do that?
First man: It saves me time.
Second man: How much time?
First man: Maybe 5 to 10 years.
Quoted in Burgess J.W. Raby and William L. Raby, Penalty Protection for the Taxpayer: Circular 230 and the Code, 2005 TNT 105-65.
Bob Van Voris and Ian Thoma, Ex-UBS Client Heller Gets 45-Day Jail Term for Tax Evasion (Bloomberg 1/20/12), here.