Credit Suisse Helped Rich Americans Hide Over $700M Despite 2014 DoJ Plea: Wyden Investigation

The Senate Finance Committee's findings of a two-year investigation released Wednesday uncovered major violations of a 2014 plea agreement by Credit Suisse Group AG (NYSE:CS) with the Department of Justice for enabling tax evasion by thousands of wealthy U.S. individuals.

The committee's investigation revealed a "previously unknown, ongoing and potentially criminal conspiracy involving the failure to disclose nearly $100 million in secret offshore accounts belonging to a single family of American taxpayers."

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The report pointed out that the investigation also shed new light on the extent to which Credit Suisse bankers aided and abetted offshore tax evasion by U.S. businessman Dan Horsky, who pleaded guilty in 2016 to one of the largest criminal tax evasion cases in American history.

Based on the committee's findings, the total amount concealed in violation of Credit Suisse's 2014 plea agreement is more than $700 million.

Wyden’s Remarks: Senate Finance Committee Chairman Ron Wyden (D-Ore.) said Swiss bankers and catnapping government regulators are at the center of this investigation.

"Officials at the Department of Justice have said they intend to crack down on corporate offenders, particularly repeat offenders like Credit Suisse, and I expect them to follow through on that commitment. In addition to a significant penalty for the bank, the individual bankers involved in these schemes must also face a criminal investigation," he said.

Following are some of the findings of the investigation:

• The committee found Credit Suisse violated key terms of its plea agreement with the Department of Justice.

• The committee uncovered what may be one of the largest Foreign Bank Account Report violations in U.S. history.
• Former senior bankers at Credit Suisse were involved in the management of large, undeclared offshore accounts.
• Credit Suisse employees knowingly and wilfully helped Horsky conceal $220 million from U.S. authorities.

The report also stated that in response to pressure from committee investigators, Credit Suisse identified 23 additional large, undeclared accounts belonging to ultra-wealthy Americans, each with assets over $20 million.

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