UBS Banker Pleads Guilty To Tax Evasion
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A former UBS AG banker has agreed to plead guilty to helping a billionaire real-estate mogul evade American taxes on money stashed in bank accounts in Switzerland and Liechtenstein, the Justice Department said.
Bradley Birkenfeld, who worked in the firm’s private banking division, scheduled a “change of plea” hearing for June 9 in federal court in Fort Lauderdale, Fla., according to court papers. Mr. Birkenfeld, who worked at UBS between 2001 and 2006, had pleaded not guilty earlier this month after he was indicted with Mario Staggl of Liechtenstein. Mr. Staggl is a fugitive, prosecutors have said.
The case is part of a growing American investigation into whether UBS helped clients avoid paying taxes. The probe has added to the trouble swirling around the bank, which has also been hit hard by the subprime loan crisis. By changing his plea, Mr. Birkenfeld is signaling he will help prosecutors and identify other UBS customers who shielded assets to escape paying income taxes, a former head of the Justice Department’s tax division, Eileen O’Connor, said.
