HSBC Depositor Pleads Guilty to Conspiracy (1/7/13)

Sanjay Sethi, a business owner, has pled to a conspiracy count for activities related to an offshore account with HSBC.

Plea: Conspiracy (1 count)
Maximum Possible Sentence:  5 years.
Conviction Date: 1/7/13
Bank: HSBC
Enablers: Names via Pseudonyms as " U.S. Banker A, a senior vice president in New York of a cross-border banking group within the private banking division; U.K. Banker A, a 'high-ranking executive' in London and head of a cross-border banking group focusing on clients with ties to south Asia; and Swiss Banker A, a financial adviser based in Geneva."
Entities: Yes
Omitted Income:  ?
Estimated Tax Loss:  Per plea - $80-200,000
High Balance $4.7 million
FBAR Penalty: $2.37 million
Sentencing Date:;
Court: D NJ
Judge: Linares, Jose (Wikipedia entry here.)

I'll post more when I have more information / insight.  In the meantime, here is a good article David Voraceas, HSBC N.J. Client Admits Conspiracy in Offshore Tax Case (Bloomberg 1/7/13).  Key quotes from the article.

He used a Swiss charitable trust and a Cayman Islands corporation to hide the proceeds of real estate transactions in India, according to his charging document known as a criminal information.

Sethi also used a British Virgin Islands corporation to hide his ownership of an undeclared Swiss account to “unreported business receipts and reimbursements for actual business expenses” of SanVision, he admitted. 

He admitted conspiring with U.S. Banker A, a senior vice president in New York of a cross-border banking group within the private banking division; U.K. Banker A, a “high-ranking executive” in London and head of a cross-border banking group focusing on clients with ties to south Asia; and Swiss Banker A, a financial adviser based in Geneva. 

Sethi admitted that from 2001 until 2009, he had undeclared accounts in Switzerland and India. His highest balance of $4.7 million was in 2007, when he sold a house in Watchung for $2.2 million, according to his information.