Bank Leumi to Pay $400 Million in U.S., N.Y. Tax Probes
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Bank Leumi Le-Israel Ltd. agreed to pay $400 million and admit it helped American clients evade taxes for a decade, in a case showing that U.S. prosecutors and New York regulators are extending their probes of offshore tax evasion beyond Switzerland.
The Justice Department filed a conspiracy charge yesterday against Bank Leumi, Israel’s second-largest lender, and four units. The U.S. agreed to defer prosecution for two years, and the bank admitted it unlawfully helped clients hide assets from the Internal Revenue Service, according to court documents.