Posted on 04/30/2020 12:50:37 PM PDT by yesthatjallen
Bank Hapoalim (Switzerland) Pleads Guilty and Bank Hapoalim B.M. Enters into Deferred Prosecution Agreement for Criminal Misconduct; Agree to Pay Nearly $875 Million
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Jeffrey A. Rosen, the Deputy Attorney General of the United States, Richard E. Zuckerman, the Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division, and Don Fort, the Chief of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the guilty plea of Bank Hapoalim (Switzerland) Ltd. and entry of criminal charges against Bank Hapoalim B.M. for conspiring with U.S. taxpayers and others to hide more than $7.6 billion in more than 5,500 secret Swiss and Israeli bank accounts and the income generated in these accounts from the Internal Revenue Service (the “IRS”).
As part of today’s resolutions, along with resolutions entered into with state and federal partners, Bank Hapoalim B.M. (“BHBM”), Israel’s largest bank, and its Swiss subsidiary Bank Hapoalim (Switzerland) Ltd. (“BHS”) (collectively, the “Bank”), agreed to pay approximately $874.27 million to the U.S. Treasury, the Federal Reserve, and the New York State Department of Financial Services. Today’s resolution is the second-largest recovery by the Department of Justice in connection with its investigations since 2008 into facilitation of offshore U.S. tax evasion by foreign banks. Officers of BHBM and BHS appeared on behalf of the Bank to enter the guilty plea before U.S. District Judge Mary Kay Vyskocil.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Israel’s largest bank, Bank Hapoalim, and its Swiss subsidiary have admitted not only failing to prevent but actively assisting U.S. customers to set up secret accounts, to shelter assets and income, and to evade taxes. The combined payment approaching $1 billion reflects the magnitude of the tax evasion by the Bank’s U.S. customers, the size of the fees the Bank collected to provide this illegal service, and the gravity of the illegal conduct.”
Deputy Attorney General Jeffrey A. Rosen said: “Today’s resolutions and payment of $874 million make clear that tax evasion cannot be taken lightly. A fair tax system requires even-handed compliance, and honest conduct by all participants in the system.”
Principal Deputy Assistant Attorney General Richard E. Zuckerman said: “The Department of Justice continues to aggressively prosecute banks and other financial institutions that help U.S. taxpayers conceal their income and assets in offshore bank accounts. Today, Bank Hapoalim is being held accountable for its conduct – it has admitted to its crimes and will surrender all fees it earned, repay the United States for lost tax revenue, and pay a substantial fine.”
IRS-CI Chief Don Fort said: “There is no excuse for a foreign financial institution to unlawfully assist wealthy Americans in flouting their responsibilities to pay their taxes. With today’s guilty plea, Bank Hapoalim is taking responsibility for their role in deliberately breaking the law and undermining the integrity of this nation’s tax system. Offshore tax evasion is a top priority for IRS Criminal Investigation and we are wholeheartedly committed to bringing offenders to justice. Today’s resolution serves as proof that financial institutions engaging in tax fraud face dire criminal and financial consequences for their behavior.”
Today’s resolutions include agreements with BHBM and BHS under which the Bank agreed to accept responsibility for its conduct by stipulating to the accuracy of extensive Statements of Facts. BHBM further agreed to refrain from all future criminal conduct, implement remedial measures, and cooperate fully with further investigations into hidden bank accounts. Assuming BHBM’s continued compliance with its agreement, the Government has agreed to defer prosecution of BHBM for a period of three years, after which time the Government will seek to dismiss the charge against BHBM.
According to documents filed today in Manhattan federal court:
BHBM is Israel’s largest bank and operates primarily as a retail bank with approximately 250 branches throughout Israel and more than 2.5 million accounts. In addition to retail banking services, BHBM offered private banking services for onshore and offshore customers through its retail branches and its Global Private Banking Center. BHBM also wholly owned Poalim Trust Services Ltd., which provided trust formation and management services. Outside Israel, BHBM owned BHS, a Swiss subsidiary that provided private banking. BHS is headquartered in Zurich and at times during the prosecution period had branches in Geneva, Luxembourg, and Singapore. BHBM also had branches in New York, Miami, the Cayman Islands, the United Kingdom, and Jersey.
From at least in or about 2002, and continuing until at least in or about 2014, the Bank conspired with employees, U.S. customers, and others to: (1) defraud the United States with respect to taxes; (2) file false federal tax returns; and (3) commit tax evasion. Employees of BHBM and BHS assisted U.S. customers in concealing their ownership and control of assets and funds held at the Bank, which enabled those U.S. customers to evade their U.S. tax obligations, by engaging in the following conduct:
· Assisting U.S. customers with opening and maintaining accounts in the names of pseudonyms, code names, trust accounts, and offshore nominee entities;
· Opening customer accounts for known U.S. customers using non-U.S. forms of identification;
· Enabling U.S. taxpayers to evade U.S reporting requirements on securities’ earnings in violation of the Bank’s agreements with the IRS;
· Providing “hold mail” services for a fee, avoiding any correspondence regarding the undeclared account being sent to the U.S.;
· Offering back-to-back loans for U.S. taxpayers to enable them to access funds in the United States that were held in offshore accounts at the Bank in Switzerland and Israel; and
· Processing wire transfers or issuing checks in amounts of less than $10,000 that were drawn on the accounts of U.S. taxpayers or entities in order to avoid triggering scrutiny.
At least four senior executives of the Bank, including two former members of BHS’s board of directors, were directly involved in aiding and abetting tax evasion of U.S. taxpayers.
SNIP
Hey, that’s my bank!
Joking.
“Conspiring with US taxpayers”?
Terrible headline!
They aren’t helping me, or any other Freeper I would guess.
It’s gotten harder and harder to get money from the US into Israel, even for charities. This has been a long time coming.
“New Yorkers”
https://www.foxbusiness.com/features/wealthy-new-yorkers-offshore-israeli-swiss-accounts
Probably mostly rich Israelis.
Why we tolerate “offshore banking” is beyond me. The Caymans and Channel Islands ought to send every national government’s tax authorities a list of account holders and their annual incomes in the so-called haven, under penalty of loss of visa privileges with the US.
There is almost no anonymous banking of any kind left for Americans and Europeans. The US govt is too powerful. Places like Switzerland and Cyprus gave in to the US govt several years ago.
Nope, all of them are wealthy liberal Jewish democrats not paying their fair share of taxes.
TOTAL HYPOCRITES!!!!!!!
Bro if you can’t get it up in the morning do you blame us Nyers? :)
heh heh
The Israel govt was in on this bust. There is a special anti-money laundering police unit that has busted other Israeli banks too. This tracing of money has been going on for a few years, including Israeli banks forcing foreigners to close accounts.
Israel has a #DeepState. It is difficult to find a nation that doesn’t. All #deepStaters are in cahoots. NWO. Thank God for President Trump. They hate him because he is exposing their treason. Too bad GHWB isn’t alive to see his beloved NWO come crashing to the ground.
So where’s the list of the bank customers who are engaged in the fraud?
I don’t see a problem with that. You should hide as much as you possibly can from the government, as well as lie without repercussion. It is every American’s duty to have contempt for congress.
I was not one of their customers. But I am very interested in knowing the names of US citizens involved in this scheme. And when we can expect indictments announced.
If the bank had such an elaborate plan then undoubtedly they also have a money-laundering scheme as well. In this they would be scrubbing US tax-payer clean of its identify for a fee.
this could be big. All the major banks hide assets and launder drug money. Hopefully this is a trend instigated by whistle blowers in the various companies. Send signals that they will be made welcome and be taken care of financially.
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