Susanne D. Rüegg Meier, a citizen and resident of Switzerland, pleaded guilty on July 19, 2017, to conspiring with U.S. taxpayers and other Swiss bankers to defraud the United States as the head of a team of bankers for Credit Suisse AG between 2002 and 2011. She was responsible for the accounts of over 1,000 clients and handled approximately $400 million in assets. Her conduct led to an estimated U.S. tax loss of between $3.5 and $9.5 million. Sentencing in this case is scheduled for early September 2017; Rüegg Meier faces a maximum of five years in prison, a period of supervised release, and restitution penalties.
On May 10, 2017, U.S. Attorney General Jeff Sessions issued a memorandum to all Federal prosecutors, laying out the core principles of charging and sentencing policy for the Department of Justice under the Trump Administration. Namely, prosecutors have been instructed to "charge and pursue the most serious, readily provable offense" and "disclose to the sentencing court all facts that impact the sentencing guidelines or mandatory minimum sentences." Exceptions to the "strict application" of these guidelines must be clearly documented and then approved by a U.S. Attorney, Assistant Attorney General, or designated supervisor. This new policy memorandum explicitly rescinds certain policies set forth by the Obama Administration.
The US Department of Justice recently determined that the Singapore affiliate of UBS (UBS AG) "has complied with an Internal Revenue Service (IRS) summons for bank records" related to a taxpayer whose liabilities are at issue. The international financial institution refused to produce the records when first served the summons. After a petition was filed to enforce the summons formally, UBS and the IRS resolved the matter amicably and the petition was voluntarily dismissed.
On January 27, 2016, the Department of Justice announced that it reached its final non-prosecution agreement under Category 2 of the Swiss Bank Program with HSZH Verwaltungs AG (HSZH). The department has executed agreements with 80 banks since March 30, 2015, when it announced the first Swiss Bank Program non-prosecution agreement with BSI SA.
According to IRS data, in fiscal year 2014, 120 employment tax cases were opened for tax evasion investigation. Of those, 92 were recommended for prosecution and 82 received federal sentences. These numbers are set to increase, not only in federal cases, but in California cases as well. Caroline Ciraolo, Acting Assistant Attorney General for the Department of Justice Tax Division, has indicated that increasing criminal enforcement for employment tax crimes is a priority of the DOJ Tax Division. The maximum sentence for the willful failure to meet payroll filing and payment obligations is 5 years with penalties as high as $200,000.
The Department of Justice has released the results of its ongoing efforts to identify and extinguish the practices of fraudulent tax return preparers and tax scheme promotors. In the press release, the DOJ describes its most recent activities in stopping violations of federal tax laws by professionals along with an update on injunctions obtained against hundreds of tax-return preparers.Click here to read the results from the Department of Justice.
On October 7, 2013, Governor Jerry Brown signed Assembly Bill 576 into law, authorizing a pilot program to create the "Revenue Recovery and Collaborative Enforcement Team" (RRCET) consisting of an alliance primarily between the California Department of Justice (DOJ), the Franchise Tax Board (FTB), the State Board of Equalization (BOE), and the Employment Development Department (EDD) in an effort to combat "criminal tax evasion associated with the underground economy."
The Department of Justice and Internal Revenue Service-Criminal Investigation announce a guilty plea by Aaron Cohen of Encino, California. Mr. Cohen pleaded guilty in the U.S. District Court for the Central District of California to conspiracy to defraud the United States.