Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Wegelin & Co. Must Forfeit $16 Million, U.S. Judge Rules

April 25 (Bloomberg) -- Wegelin & Co., the 270-year-old Swiss bank charged with helping U.S. taxpayers hide more than $1.2 billion from the Internal Revenue Service, was ordered by a U.S. judge to forfeit $16 million.

U.S. District Judge Laura Taylor Swain in Manhattan yesterday entered a default judgment against Wegelin, allowing the government to take the money in Wegelin’s correspondent account in the U.S., held at UBS AG in Stamford, Connecticut.

Wegelin, based in St. Gallen, Switzerland, and three bankers at its Zurich branch were indicted in February on charges of conspiring with clients to evade U.S. taxes. Prosecutors called Wegelin a “fugitive” after the bank declined to send a lawyer or other representative to a court hearing in the case.

Prosecutors claimed that Wegelin and at least two other Swiss banks used the UBS account to launder money deposited by U.S. taxpayers to help them avoid detection by the government. Wegelin didn’t take any action to challenge the government’s claim to the money, prosecutors from the office of Manhattan U.S. Attorney Preet Bharara said yesterday in a statement.

Albena Bjoerck, a spokeswoman for Wegelin, declined to comment on the matter.

The case is U.S. v. All Funds on Deposit at UBS AG, Account No. 101-WA-358967-000, Held in the Name of Wegelin & Co., 12-cv-00836, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Bob Van Voris in New York at rvanvoris@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.