Big bank insider exposes $20bn UBS tax evasion, awarded $104m

National Whistleblowers Center –

Whistleblower bags massive $104 million reward for foiling bankster scam

By ECM Plus staff

ECM Plus /Washington, D.C./ +++ Former UBS banker Bradley Birkenfeld has won a massive whistleblower reward of $104 million for his contributions in providing the U.S. Government with insider information on UBS’ illegal offshore banking scheme.

According to the National Whistleblowers Center, this is believed to be the largest reward ever given to an individual whistleblower in the United States and the first major reward issued under the IRS tax whistleblower law.

In a joint statement, Mr. Birkenfeld’s attorneys, Stephen M. Kohn and Dean A. Zerbe said: ‘The IRS today sent 104 million messages to whistleblowers around the world – that there is now a safe and secure way to report tax fraud and that the IRS is now paying awards. The IRS also sent 104 million messages to banks around the world – stop enabling tax cheats or you will get caught.’

Brad Birkenfeld

In granting the award, the American government tax agency IRS described Mr. Birkenfeld’s contributions as “exceptional in both its breadth and depth. While the IRS was aware of tax compliance issues related to secret bank accounts in Switzerland and elsewhere, the information provided by the whistleblower formed the basis for unprecedented actions against UBS.”

Stephen Kohn, who also serves as the Executive Director of the National Whistleblowers Center, said NWC was initiating an international campaign to educate employees regarding their rights under new whistleblower reward laws covering tax evasion, securities fraud and violations of the Foreign Corrupt Practices Act.

Stephen Kohn

“Employees throughout the world need to know that there is a safe haven to blow the whistle on major frauds. As demonstrated by the IRS’ decision in the Birkenfeld case, these laws can be effectively used to combat corruption, illegal offshore tax evasion and money laundering,” Kohn said.

Mr. Birkenfeld’s disclosures directly resulted in: a fine paid to the U.S. by UBS bank in the amount of $780,000,000.00; over 35,000 taxpayers participating in “amnesty” programs to voluntarily repatriate their illegal offshore accounts; and the collection of over $5 billion in back taxes, fines and penalties.

Mr. Birkenfeld’s disclosures also forced the Swiss government to change its tax treaty with the United States, resulting in UBS turning over the names of over 4,900 U.S. taxpayers who held illegal offshore accounts.

These “taxpayers” are now being investigated and prosecuted.

Whistleblowers can visit to learn about their rights and to find out how they can report fraud confidentially.

Leave a comment

Filed under Accounting, Asset management, Business Intelligence (BI), Business Rules, Capital Management, Compliance, Corporate Civic Responsibility (CCR), Corporate Governance, Corporate Social Responsibility (CSR), Document Management, eDiscovery, Electronic Document Management & Delivery, Finance, GRC (Governance, Risk & Compliance), Industry News, Information Governance, Information Management, Internal Controls, Investor Relationship Management, Legal, Policy Management, Private Finance, Private Wealth, Records & Information Management (RIM), Regulatory Compliance, Reporting, Risk Analysis, Risk Assessment, Risk Management, Segregation of Duties (SoD), Trade & Investment, Wealth Management

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s