New Information for Tax Conspiracy and Related Credit Suisse (through Successor UBS) Initiatives Re Violation of 2014 Plea Agreement (1/19/25)

In United States v. Rosenberg (S.D. FL No. 1:25-cr-20005, CL Dkt. Sheet here), the Government filed an Information with Trial Attorney Certificate, here, charging Gilda Beth Rosenberg (aka Gilda Rosemberg Percezek) with one count of conspiracy to defraud and commit offenses (i.e., both a defraud and an offense conspiracy in one count). Except for the large amounts involved, the allegations are not unusual for U.S. taxpayers who employed Swiss financial institutions to avoid their U.S. tax reporting and paying obligations. That the filing is an information with an attached Trial Attorney Certificate indicating that 0 days of trial is expected suggests that a plea deal has been reached, will be filed with the district court soon, and will be processed to sentencing in due course.

The Information names only one Swiss bank specifically--Union Bancaire Privee Bank. Another, unnamed Swiss bank is alleged to have held Rosenberg’s assets in an “insurance wrapper” account, described as “an investment account around which was wrapped a life insurance policy.” (I don’t know recall the precise tax gambit for such insurance wrappers with life insurance but I assume that it relates at least in part to the nontaxability of life insurance proceeds thus potentially cleansing unreported income behind the “insurance” proceeds.)

Credit Suisse appears to have been somewhere in the mix, perhaps with the insurance wrapper account. Credit Suisse earlier ran afoul of U.S. tax authorities and reached a deal in 2014 to plead guilty to a U.S. tax crime, pay $2 billion, and identify U.S. taxpayers it assisted evade tax.  Credit Suisse Pleads to One Count of Conspiracy to Aiding and Assisting (Federal Tax Crimes Blog 5/19/14; 5/20/14), here. Credit Suisse then apparently breached that deal by not disclosing some U.S. taxpayers (including allegedly Rosenberg). (The amount Credit Suisse paid under the 2014 deal is variously reported but according to my discussion in that blog, the documents indicate the resolution cost Credit Suisse $2 billion.)

In 2023, the Senate Finance Committee began an investigation of Credit Suisse’s compliance with the obligation to disclose U.S. taxpayers. See e.g., Chairman’s News, Wyden Continues Swiss Bank Investigation Following Indictment of American Credit Suisse Client on Tax Evasion Charges (Senate Finance Committee 7/25/24), here, identifying the Edelman indictment and asking UBS, Credit Suisse successor specific questions. The investigation continues and has resulted in Credit Suisse’s successor Swiss Bank, UBS, reportedly being close to another deal with the U.S. that will require substantial payments. Margot Patrick, Emily Glazer, & Dave Michaels, UBS Close to Large Settlement Over Credit Suisse Tax Case (WSJ 1/9/25); Ex-Credit Suisse Client Charged by US Amid Tax Evasion Probe (Swissinfo 1/9/25), here. According to the Swissinfo article, Rosenberg was one of the undisclosed Credit Suisse U.S. taxpayer clients that interested the Senate Finance Committee, and “Whistleblowers” made disclosures to the Committee. (Whistleblowers may also have made claims for whistleblower awards.) See Allegations of Continuing Misconduct Against A Supposedly Chastened Credit Suisse (Federal Tax Crimes Blog 3/14/21), here.) and see Maureen Leedy, Fourth Circuit Okays Dismissal of Credit Suisse Whistleblower’s Suit (Thomson Reuters 9/5/24), here.