UBS Whistleblower Gets $140M for Exposing Tax Evasion

But he pleaded guilty to conspiracy and served prison time first

   

A former employee of UBS has been awarded the largest whistleblower award in U.S. history to an individual for helping uncover tax evasion at UBS (NYSE:UBS).

Bradley Birkenfeld will receive $104 million from the IRS for his efforts. That represents a dramatic reversal in the former UBS banker’s fortunes. After reporting the Swiss bank’s efforts to help clients evade U.S. taxes to the IRS in 2007, Birkenfeld was promptly prosecuted by the U.S. government, the Associated Press reported.

money stacks hundreds 630 200x200 UBS Whistleblower Gets $140M for Exposing Tax Evasion
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In fact, Birkenfeld ended up serving 31 months of a 40-month sentence after he pleaded guilty to conspiracy to defraud the U.S. government by helping clients shelter money overseas. He’s currently out of prison but under home confinement until he officially begins three years of parole in November.

The information Birkenfeld provided to the government led to the recovery of more than $5 billion in back taxes owed by U.S. citizens who had withheld money from the IRS in overseas accounts. UBS was ultimately hit with fines of $780 million and had to reveal the names of 4,700 clients who may have hidden money from the IRS.

In a statement, Birkenfeld called the award “a monumental day” for whistleblowers.


Article printed from InvestorPlace Media, http://investorplace.com/2012/09/ubs-whistleblower-gets-140m-for-exposing-tax-evasion/.

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