Dan Horsky, the convicted Israeli-American tax offender, was a customer of Credit Suisse. The U.S. authorities have now reopened investigations against Switzerland’s second-biggest bank – a mere three years after it was forced to pay a huge fine for abetting tax evasion.
Credit Suisse (CS) three years ago pleaded guilty to helping U.S. customers evading their taxes. The Swiss company paid a $2.6 billion fine.
Now, U.S. tax authorities are again targeting the bank for a similar reason, according to a report by «The Wall Street Journal» (behind paywall).
Harsh Consequences May Follow
The latest investigation may yet lead to a formal charge against CS. If found guilty again, the bank would likely be liable to pay another fine or face restrictions on its activities in the U.S., according to an unidentified source.
The case of Dan Horsky (pictured left) is the reason for the latest investigation. The rich economics professor with U.S.-Israeli roots once had held lectures at the University of Bern.
Horsky Cooperated With U.S. Investigators
Horsky kept secret several hundred million dollars in assets for years. He held more than $200 million in untaxed money at Credit Suisse. Horsky, 71, recently was convicted to a seven-month prison term and a fine of $124 million.
The professor had agreed to cooperate with U.S. authorities and delivered information about banks and relationship managers. He used to tape conversations with his advisers at Credit Suisse, which came in handy during the investigation.
Three Separate Investigations
The U.S. authorities now want to find out whether other U.S.-Israeli citizens kept their assets hidden away from the taxman and whether CS knew about it.
The Swiss bank faces simultaneous investigations by the U.S. attorney general, stock-exchange regulator SEC and the New York Department of Financial Services. The latter has the authority to decide about the Swiss Bank's license to operate in the U.S.
CS Is Cooperating
Should the investigations show that CS had been at fault in the Horsky case and if further cases resurface, the bank would potentially be in dire straits.
When the bank in 2014 pleaded guilty, it promised to clean up its act and behave impeccably. The U.S. authorities no doubt would take offense if CS were found guilty again.
«Following our settlement in 2014, Credit Suisse continues to cooperate fully with the U.S. authorities, working closely with the monitor appointed in conjunction with the NY DFS to identify individuals who may have sought to avoid their U.S. taxation obligations,» CS said in a statement sent to finews.com today.
