Saturday, December 3, 2011

Atypical Offshore Account Sentencing (12/3/11)

Michael A. Hase, whose guilty plea was previously discussed here, was sentenced on 12/2/11. The blog discussing the guilty plea Another UBS Client Pleads -- With the Baggage of Illegal Income (9/27/11), here.  I have seen the DOJ press release but it is not yet posted on the DOJ Tax press release site.  When it is posted, I will link it here.  But readers should note particularly that this is an atypical case because of the key charge of Theft of Government Property which probably skewed the sentencing results toward greater punishment.  Had this been a tax related charge (some tax charge(s) without the other charge), I would not have expected, for example, an incarceration sentence of 29 months.

The key features of the sentencing are:

Taxpayer: Michael A.Hase
Bank : UBS AG and its predecessor Swiss Bank Corporation Jersey Islands;
Entities: No
Guilt: By Plea Agreement - 2 counts - theft of government property 18 USC 641 (one count); tax perjury (Section 7206(1)) (1 count covering 10 years).
Maximum Incarceration Period: 13 years (10 years on theft count; 3 years on tax count)
Actual Incarceration Period Sentence (subject to good time credit):  29 months
Unreported Income: $909,156.66 (from prior blog; not in sentencing announcement)
Tax Loss: $254,564.14  (from prior blog; not in sentencing announcement)
FBAR Penalty: $1.937,767 + (Based on 50% of the indicated highest balance of $3,875,934 in 2006).
Restitution: $36,325.52
Court: D DC.
Judge: John D. Bates

I will update the spreadsheet later.

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