Swiss Bank Banque Pictet Admits to Hiding $5.6B from IRS, Agrees to Pay Fine
In a shocking revelation, Banque Pictet, the private banking division of Pictet Group, has admitted to conspiring with U.S. taxpayers and others to hide over $5.6 billion from the Internal Revenue Service (IRS). The Department of Justice announced on Monday that the 218-year-old bank has agreed to pay approximately $122.9 million in restitution and penalties as part of an agreement with prosecutors.
Between 2008 and 2014, Banque Pictet had 1,637 accounts on behalf of American clients, who collectively evaded approximately $50.6 million in U.S. taxes, according to the DOJ. The accounts held more than $5.6 billion of the roughly $20 billion in total assets from U.S. taxpayers that the bank managed during the relevant period.
As part of the deal, the Justice Department has agreed to defer prosecution for three years and then dismiss a charge of criminal conspiracy to defraud the IRS if the bank complies with the terms of the agreement. Additionally, the bank has agreed to cooperate with ongoing investigations into hidden bank accounts.
“Rooting out financial malfeasance remains a priority for this Office,” said Damian Williams, U.S. Attorney for the Southern District of New York, in a statement. “We encourage companies and financial institutions to come to us to report wrongdoing before we come to you.”
It is important to note that this is a breaking news story, and readers are encouraged to check back for updates.