Swiss Bank Banque Pictet & Cie SA Admits to Conspiring with U.S. Taxpayers to Hide $5.6 Billion from IRS
In a significant development, a major Swiss bank has confessed to collaborating with U.S. taxpayers and others to conceal over $5.6 billion from the Internal Revenue Service, the Department of Justice declared on Monday.
Banque Pictet, the private banking division of the esteemed Pictet Group, has agreed to pay approximately $122.9 million in restitution and penalties as part of the settlement with prosecutors.
According to the Department of Justice, between 2008 and 2014, the bank held 1,637 accounts on behalf of American clients, leading to an evasion of about $50.6 million in U.S. taxes. The accounts themselves collectively held more than $5.6 billion of the roughly $20 billion in total assets from U.S. taxpayers managed the bank during the relevant period.
As per the terms of the agreement, if the bank adheres to the terms of the deal, the Justice Department has consented to defer prosecution for three years and then dismiss a charge of criminal conspiracy to defraud the IRS. Additionally, the bank has committed to cooperating with ongoing investigations into hidden bank accounts.
Damian Williams, U.S. Attorney for the Southern District of New York, emphasized that “rooting out financial malfeasance remains a priority for this Office,” and encouraged companies and financial institutions to report any wrongdoing proactively.
This is a developing story, please stay tuned for updates.