WHISTEBLOWERS — " If he had kept his mouth shut and
his head low, Bradley Birkenfeld would be a free man today. He
didnt, so now the former UBS Swiss banker wears an electronic
bracelet on his ankle and, beginning in January, will spend
three years and four months in a federal penitentiary," notes columnist Ann Woolner for Bloomberg News.
Hes headed for prison even though he blew the whistle on a
multibillion-dollar international tax fraud conspiracy.
Birkenfelds information let the U.S. pierce Swiss bank secrecy
laws as never before possible.
We will be receiving an unprecedented amount of
information on taxpayers who have evaded their tax obligation by
hiding money offshore at UBS, Internal Revenue Service
Commissioner Doug Shulman said in a statement last week.
Because of Birkenfeld, the feds are now going after
hundreds, possibly thousands, of tax evaders. They have
collected a $780 million fine from UBS and forced the banks
cooperation in finding previously secret customers.
The list of those so far charged in the scheme numbers
nine, led by Raoul Weil, the former chief executive officer of
global wealth management for UBS.
So why is the man who blew the whistle on a mammoth tax
fraud facing prison time? The feds will tell you its because he
played a role in the conspiracy, a fact he failed to mention
when he first stepped forward.
So far he has gotten rougher treatment than those who were
content to hide in the shadows. Birkenfelds biggest ex-
customer, California billionaire Igor Olenicoff, got only
probation (and only two years of that!) for hiding as much as
$200 million from the IRS. He also paid the government $52
million in back taxes, interest and penalties, thanks to
Return to Switzerland
Birkenfelds ex-boss, who ran the global tax-fraud
business, made out even better than Olenicoff. Held as a
material witness for some months in 2008, Martin Liechti pleaded
the Fifth Amendment when called before Congress and was allowed
to return to Switzerland, a free man, charged with no crime.
Birkenfeld got slammed because, for all the good he did, he
didnt tell on himself. So prosecutors sought a 30-month prison
term for him, and a federal judge in Fort Lauderdale, Florida,
ratcheted it up to 40 months at sentencing last week.