Another UBS Customer is Charged (2/28/13)

Peter Troost, owner of Troost Memorials, has been charged with tax evasion.  The press release by the USAO ND IL is here.

According to the press release:

1.  "Troost is the first taxpayer charged in Federal Court in Chicago in connection with an ongoing investigation of U.S. taxpayer clients of UBS and other overseas banks that hid foreign accounts from the Internal Revenue Service"

2. "Troost maintained at least one offshore account with UBS, which he managed with the assistance of a UBS personal banker based on the island of Jersey."

3.  The plea is to evasion in one year.  The fact that he was charged by complaint and that only one count is involved may indicate that a plea deal is in the offing.  However, as we all know, counts can be added later by original indictment after a complaint, superseding indictment or even dismissal of this indictment and re-indictment.  Also, if a plea deal were in the offing, this one appears outside the plea deals previously require and made.  The plea deals previously made consisted of either FBAR count or Tax Perjury Count.  The Tax Perjury Count is a 3-year felony.  I have not heard that the prosecutors in plea negotiations required the plea to Evasion (5-year count).  So, there will be more to come on this.

4. Although not clear from the press release, the year for the evasion charge 2007 in which Troost's gross income was $647,040, his income tax was at least $212,503, and he attempted to evade tax of $193,641.  There were also significant income omissions in other years.

5.  Troost answered the Schedule B question about foreign bank accounts "No." He also failed to file the required FBARs.

6.  Troost is 78 years old.

As is typical of charges publicly announced during the tax season, the press release quotes the special agent as saying:

“With the April tax deadline looming, we encourage taxpayers to think of the serious consequences, including civil and criminal penalties, for willfully presenting false information on their federal tax returns. All taxpayers must honor their obligation to report all of their income and pay all of the taxes they owe,” Mr. Lee said.

I will update this blog entry as more information comes in and will post an updated spreadsheet by next Monday.