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Jacques Wajsfelner hid $5.7 million from U.S. tax authorities, failing to file Foreign Bank and Financial Accounts Reports from 2006 to 2011.
A judge in a federal court in Manhattan ordered Wajsfelner to pay a civil penalty of $2.8 million and $419,940 in back taxes. He was also given sixth months of probation, including three months of home confinement, authorities said.
Wajsfelner’s financial adviser Beda Singenberger was charged in July 2011 with conspiring with U.S. taxpayers to hide more than $184 million in various Swiss banks. The case against Singenberger is still pending.
The German-born Wajsfelner opened an account in his own name at Credit Suisse, a Swiss bank headquartered in Zurich, Switzerland, beginning in 1995.
In 2006, authorties believe Singenberger helped Wajsfelner open an undeclared account at the Swiss bank using the name of the fake corporation “Ample Lion.”
“By opening the Ample Lion account at Credit Suisse, Wajsfelner was attempting to obscure his ownership of the assets in the account from the IRS,” said a statement released by Preet Bharara, the United States Attorney for the Southern District of New York.
In the fall of 2008, Credit Suisse ended its U.S. cross-border banking business, and in order to continue hiding money he opened an account with Swiss bank Wegelin. By the end of 2010 the account was valued at $5.5 million.
On Monday, Wegelin was and ordered to pay nearly $58 million to the United States for their role in the tax evasion schemes.
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Isn't it suspiious that if you are a liberal and think like Obama that they don't go after you for hiding money in foreign accounts but if you don't subscribe to the leftist ideas they throw the book at you and try to take your money.
Ok, Mitt Romney puts his money in off shore banks. Why doesn't the goverment go after him and the rest of the rich that hide their money?
Isn't it suspicious that anyone who makes a comment, regarding the IRS cracking down on tax evaders, should use terms like "liberal" and "conservative"? What the heck does politics have to do with tax evaders? Hell if politics were involved, Mitt Romney would be in jail because the "liberals" would have exposed his use of offshore accounts before it ever got to election day!
@bob-1800129, you, sir, are an idiot, like so many others, who have previously made the same stupid comment. It is NOT illegal to put your money in off-shore accounts. It is only illegal if you do not fill out IRS form TD F 90-22.1, and pay taxes on the earned income derived. I would point out that since you know about it, just how was he "hiding" it? Do you have ANY proof he did not fill out the proper forms, and pay his taxes? I didn't think so.
http://www.irs.gov/pub/irs-pdf/f90221.pdf
Hey Bob,
Romney's accounts were declared on his income statements and tax filings. The left portrayed it as trying to hide money and evade taxes, and the sheeple bought it.
5 people, so far, like Bob's comment. You are all clueless about the law, and totally disingenuous.
Mitt ?!?
Who would of thunk?
Danafan, what tax filings? He only showed us one year. I am not a buisness major but why else would you have to put your money in an off shore bank?
I'm sure that Romney broke all sorts of laws and the press, IRS and DOJ simply ignore that fact. Put the bong down.
Now.......
The IRS and DOJ should go after the 41 Obama White House staffers (some have moved back to Chicago), and some of their aides, along with HUNDREDS of "elite" Congressional Representatives and HUNDREDS of government workers who have FAILED TO PAY THEIR BACK TAXES.
I notice no one is shocked and offended that John Kerry has money in the Caiman Islands banks. . .
-Stability of assets
-Privacy
-Higher interest rates
-Tax deductible interest (in some cases)
If you have over a million in savings you're an idiot NOT to save a fair portion of it overseas.
Why do you think Tina Turner lives in the Swiss Alps? At least she is not hiding anything and she was very opened about it. She declared her citizenship to be in Switzerland in January of this year (2013) and denounced her US citizenship. She still has property in the USA (Los Angeles, CA) but that is all she pays in taxes to the IRS.
Juliann....property taxes are not paid to the IRS.
It's not a liberal or conservative thing. If you are a US citizen, you have to pay taxes to the US on all of your earnings, whether earned in the US or abroad. There are provisions to get credit for taxes paid in foreign countries. It's also required as part of your Federal Income Tax Return to disclose all foreign bank accounts that you own or control and the dollar values of the assets, and how you own them. There are steep penalties for nondisclosure. In 2009 there was a Tax Amnesty program that permitted people who had not previously disclosed these assets to disclose them with minimal consequences. (Probably why Romney was unwilling to disclose his prior year tax returns, and did not share the FBAR reports.)
bob - You pointedly demonstrate your ignorance through your dislike of people with money.
You obviously haven't figured out that if a person claims millions in one year and hadn't filed before or since that it might trigger an investigation by the IRS. Because he chose not to share his personal financial information doesn' t mean he did anything illegal.
Using your logic of not showing documents would mean that uncle barry hasn't graduated high school or university since he hasn't provided transcripts.
I think a fact check would show that Romney has admitted to being audited by the IRS. Therefore, I think it fairly safe to assume there was no wrong doing or it would have definitely come out.
Second thought I'd like to put out there is I think as an average working class woman, it's PATHETIC the jealousy and hatred from people who don't have what wealthy people do. Maybe those people earned it!!!!! Maybe you should get off your butt and earn it like I am trying to do too. Oh no, it's much easier to blame the wealthy for you lack of success. NO ONE took it away from you to become wealthy.
Last thot, here's to all the liberal hypocrisy at it's finest. How come the liberals are not going after Democrat millionaire Denise Rich for giving up her US citizenship to get out of millions in taxes!!!!! Oh, it's different, she's a liberal. Sickening
John, the discussion is about lying about hiding money. The rest of us intelligent people understand that Tina Turner is filthy Rich and by living in Swiss Alps her money is OBVIOUSLY out of the country (this was a slam at BOB), did Julienne actually have to spell everything out just for you? Until you can actually understand basic English and follow the flow of ideas, please just read along and stop posting.
Thats the IRS for you. They will go full tilt after you if you own them money but if they owe you money nobody answers the phone........
And what about the bankers who stole billions with their high risk mortgage backed securities and LIBOR rate schemes and all the other financial fraud? When are any of them going to jail?
@when will,
They won't, they are good donator's to both political parties. They give more to the conservatives, but the liberals also get a nice hunk of money. That is their passing jail card, don'ch know?
when will it end, I agree. The worst finacial crisis in the history of the US because of derugulation. They schould be held accountable. No one has brought these bankster to justice. Obama has not done his job.
Did they break the law? You may not like it but nothing that was done was illegal or fraudulent. Yes the industry was deregulated to far, just as the stock exchange and many other regulatory bodies. Capitalism is the only economic system ever tried that works and works well but it does need to be regulated just not over-regulated or the results are just as bad.
When's Mitt's turn?
When is Obombas turn. He has money in Swiss accounts too. But you don't care about that right...
When is Jack Lew's turn.
http://www.nbcnews.com/business/jack-lews-investment-cayman-islands-flagged-senate-finance-committee-1B8309826
Ed ... turn for what? I am sure all income has been legally obtained and taxed according to current tax regulations or the I.R.S. would be more than happy to find out different. Until it is determined that those regulations were indeed were not followed, only because he is a public representative, it is none of your business my business or any other entities business. If you had not broke any tax laws, a big stretch for any citizen, would you think it was ok to publicize your financial statements to fill the idle curiousity of the masses?
any chance of the IRS going after the banks in the cayman islands soon? i think not, swiss banks are now the minors. the big league is the islands now where our big boys keep their money
Not as long as Mitt Romney is President of the Cayman Islands!
SarahTonin
Not as long as
Mitt RomneyObama is President of the Cayman Islands!Fixed it forya.
You go IRS!!! Go after all these cheats who rail against the pitiful outlays to the poor and
and unemployed yet feel it is their patriotic duty to hide behind illegal tax shelters.
Go get 'em!!
I agree, get the politicians, both parties,, business thieves and the rest.
The quickest way to settle the US debt problem, and then lower taxes for all, is have all people pay their share. I won't even add fair to share, just pay what you're supposed to and it will all work out. If some don't, we all have problems. Good job IRS!
And the average income of the low informed base of the GOP still think people like him will elevate them up to the top 2% of income earners. Damn, that kool-aid must really make them have weird dreams.
This "article" could really use some proofreading.
The last sentence was particularly jarring.
The problem is that Wajsfelner didn't donate enough to the Obama campaign. If he had he would have gotten a pass.
Note to all Millionaires and billionaires.....Swiss banks are not safe ! hence hide it in MY basement, i will keep a good eye on it...honest.
I can tell by your avatar.........you have really GOOD eyes. Nuthin's gonna escape your steelly gaze. :-)
You would keep TWO good eyes on it if they paid you double wouldn't you?
The USA is the only country on the planet, that levies taxes on its citizens earnings from outside the country. If you earn money in another country, you should be obligated to pay that countries taxes, not US taxes too.
The problem is that the money sent to those accounts was usually earned in the US. It's the US's way of forcing people to keep money here. It's not illegal. They just have to pay taxes on it.
Merrill, I didn't think you had to pay Swiss tax on earnings if you're not a Swiss resident.
"The problem is that the money sent to those accounts was usually earned in the US."
I don't know about "usually". A while back there was a series of articles/interviews about people who were forced to renounce their US citizenship because they were working overseas and where having to pay high local taxes (Japan, Germany, etc) AND a pretty hefty US taxs. I can understand trying to prevent tax cheats from shipping their money to tax haven countries, but there are far less idiotic ways of doing that, like taxing the money as it leaves the country.
As much as I am no Mitt Romney fan, he has probably not broken any tax laws or believe me the IRS would have gone after him by now. Also don't you think the fellow Republicans in the primaries and debates would not have also gone after him for tax evasion?
YA THINK? That comment deserves a big DUH.
"He was also given *sixth months of probation, including three months of home confinement, authorities said."
Can I ask who proof read this story? Sixth?
Looks like no one proofed it.
If they jailed all those billionaires hiding money in off shore accounts they would ALL be in jail.
Go after Romney next.
For what?
I wish I had extra money, to hide anywhere.
And it seems like if you had that much money and there was a chance of Uncle Sammy grabbing some of it you would have left the us long ago. You could live well on some island somewhere.
The funny thing is that after all the fines, interest on the fines and all the back taxes, the beleaguered old fellow will owe more than he has. . Isn't that just great?
What's the problem with money being in foreign accounts. If it's money from earnings made in t he U.S. then it should be taxed. It's the secret accounts to hide the earnings that is the problem. Obviously they want to cheat our government and all the rest of us. Dems and Repubs are both guilty of this. So it's not just a liberal thing!
Video gone viral that illustrates the wealth inequality in this country;
http://mashable.com/2013/03/02/wealth-inequality/
This video is shocking. Everyone should view it.
So the top 1% is focused on being "job creators"? Doesn't look that way.
So it is OK for the Romoneys and Boners of this country to hide their wealth off shore but if an unknown does it, it is called illegal..............Hmmmmm.........
I bet if Jacques Wajsfelner had made a political contribution to the Republicant GOP, this off shore business would have been perfectly OK.
No it not "ok" for any U.S. citizen to hide income anywhere for the purpose of tax evasion, unknown or well known. Having finances of any form out of the country is not illegal either if all current tax regulations is followed ... and somehow I am sure the I.R.S. pays particular attention to such funds. What is illegal is deliberately trying to hide funds for tax evasion, which is what this clown did.
Should have spread it out,Oldtimer.The clincher is, oblahma's probably usin the same bank..
Hit the little guy with $5m but let the corporations just put billions out of sight?
How about investments just giving the $ to themselves, claiming it was bad investments and then they're bailed out to the tune of $1T while giving themselves RAISES?
C'mon, let the old Kraut alone and go after the real criminals.
I pay taxes. He should too. Hurrah for us little guys.
Gee is the IRS going after Ann Romney next? She has Millions in off shore accounts. (We won't talk about Mitt)
Probably not K. Chances are extremely high that because having funds off-shore is not illegal there is no reason for the I.R.S. to "go after" the individual as long as the funds were obtained legally, taxed paid, declared each year and tax paid on interest according to current regulation. Absolutely no law has been broken.