Another UBS Related Defendant is Charged for Offshore Accounts (12/9/10)

Caveat:  The Charges in the indictment discussed below was dismissed in 2012.  See my blog on the dismissal, Family Member Enabler Charge Dismissed re Offshore Accounts (5/24/12), here.

The Government has charged yet another UBS related person. The story in a nutshell is that Samuel Phineas Upham, who, I am told, is the son of Sybil Nancy Upham, previously indicted (although named in this' indictment as "Family Member A"), assisted Family Member A with respect to her accounts, held through entities, by actively engaging in the cover up of those accounts and the proceeds from the accounts, even after the hammer had fallen on UBS. I use Mr. Upham in this blog entry to distinguish him from his mother.  His mother's indictment is here.  Further, Mr. Upham assisted Family Member A in the preparation of false returns. The charges are: (1) the ubiquitous Klein conspiracy count (Count One) and (2) aiding and assisting, Section 7206(2) for three years (2005 - 2007) (Counts Two through Four). The indictment is here.

Just a few points that I noted in reviewing the indictment (some points are redundant in part to the summary in the above paragraph, and I note that these are just allegations in the complaint and have not yet been proved):

1. The co-conspirators named in Count One are (i) Family Member A and (ii) Swiss Financial Adviser A. Swiss Financial Adviser A's background and general role in the conspiracy are described in paragraph 6.b. of the indictment. My guess is that Swiss Financial Adviser A will not come into the U.S. voluntarily anytime soon.

2. The Conspiracy Count allegations elaborate efforts to cover up, even after the hammer had fallen on UBS.

3. Sham entities were used -- a Lichtenstein Foundation and a Hong Kong corporation.

Another UBS Client is Sentenced to Probation (5/23/11)

Taxpayer: Lucille Abrahamsen Jackson
Banks : UBS AG
Entities: Yes
Guilt: By Plea Agreement - Tax Perjury (one count)
Incarceration (in months): 0
Probation: 1 year
FBAR penalty: $379,688
Fine: ?
Court: D NJ
Judge: Denis Cavanaugh
Age at sentencing: ?

Articles:
USAO D NJ Press Release

Family Member Enabler Charge Dismissed re Offshore Accounts (5/24/12)

The USAO SDNY dismissed charges against Samuel Phineas Upham.  David Voreaco, U.S. Drops Case of Man Accused of Helping Mom Hide Money (BloombergBusinessweek 5/23/12), here.  The charge was that he had assisted his mother, Sybil Nancy Upham, in hiding offshore accounts.  I have previously blogged on the son's charges, Another UBS Related Defendant is Charged for Offshore Accounts (12/9/10), here.

Not much to say, at least for now, except that it is refreshing to see prosecutors, while not admitting that they made a mistake, are willing to update their conclusions based on new information rather than stick to the conclusions.  Good Bayesian approach.

The mother pled guilty in November 2010.  I don't have information on her sentencing.  If someone has that information, I would appreciate them emailing me the information or a link to the information.