United States ends tax evasion case of Zurich bank ZKB


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NEW YORK, Sept. 3 (Reuters) – The US government is ending criminal action against Zuercher Kantonalbank for helping wealthy Americans evade taxes after the Zurich lender paid $ 98.5 million and s ‘is under a three-year deferred prosecution agreement.

In a case filed with Manhattan U.S. District Court on Friday, a federal prosecutor said “the government will not now sue ZKB” because of the lender’s “full compliance” with the August 2018 agreement.

ZKB had admitted to helping US-based clients hide hundreds of millions of dollars from the Internal Revenue Service using undeclared Swiss bank accounts.

Prosecutors said more than 190 U.S. taxpayers conspired to cover up bank accounts between 2002 and 2009.

The case was part of a broader US crackdown on overseas tax evasion by wealthy Americans.

Two ZKB bankers each pleaded guilty to a related misdemeanor conspiracy charge and were sentenced to one year probation.

The payment of $ 98.5 million included a fine of $ 35.1 million, as well as restitution and forfeiture, according to court documents.

Reporting by Jonathan Stempel in New York Editing by Marguerita Choy

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