Tax Scandal's Mystery Man

Liechtenstein's Mario Staggl is accused of working with a former UBS banker to hide $200 million from the IRS. Now he's a fugitive

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By David Henry and Matthew Goldstein and Jack Ewing

June 18, 2008 at 4:00 AM UTC

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From all appearances it's business as usual for financial consultant Mario Staggl. The 43-year-old married father of two continues to report for work at a modest three-story building in his native Liechtenstein, the tiny principality of 35,000 between the Austrian and Swiss Alps. He answers calls and e-mails as before. When friends stop by his office, they're greeted by an affable assistant.

Half a world away, however, Staggl is in deep trouble. Last month he failed to appear in U.S. federal court in Fort Lauderdale to answer charges that he helped a billionaire hide $200 million from the IRS. After that, prosecutors branded him a fugitive. Staggl's partner in the alleged scheme, former UBS private banker Bradley Birkenfeld, was expected to plead guilty on June 19—and to implicate colleagues and wealthy U.S. clients. It would be another black eye for UBS, already battered by subprime—related losses.