Former UBS Banker Pleads Guilty to Defrauding the United States by Helping Conceal Assets Offshore
On December 22, 2010, Renzo Gadola pleaded guilty in the United States District Court for the Southern District of Floria, to conspiring to defraud the United States, under 18 USC section 371. Gadola, a former UBS banker, was arrested in Miami by federal agents after meeting with an American client in Miami after he tried to persuade that client to not disclose to the United States Department of Justice and the IRS that his American client owned a bank account at small Swiss Bank (Basler Kantonalbank).
Gadola is scheduled to be sentenced on March 10, 2011, by U.S. District Judge James L. King. He faces a maximum of five years in prison and restitution for the loss that he cause the United States. The Gadola plea agreement is available by clicking here. According to the statement of facts filed with the court, available here, Gadola helped American avoid their legal obligation under the Bank Secrecy Act to disclosure foreign bank accounts to the U.S. Department of the Treasury. The Form that must be filed by June 30 of the following year is Form TD 90.22-1, available here.
The ramifications of this case for those U.S. citizens and resident aliens that have undisclosed foreign bank accounts is far-reaching. The U.S. Department of Justice continues to target and prosecute those individuals (regardless of citizenship) that help facilitate the avoidance of the Bank Secrecy Act and the evasion of income taxes. It is anticipated that some of those U.S. citizens and resident aliens that did not take advantage of the IRS voluntary disclosure program may view the Gadola prosecution of sign of things to come and confirmation that the Department of Justice investigation and deferred prosecution agreement with UBS was not an isolated event.