Plea: Conspiracy (1 count)
Maximum Possible Sentence: 5 years.
Conviction Date: 1/7/13
Bank: HSBC
Enablers: Names via Pseudonyms as " U.S. Banker A, a senior vice president in New York of a cross-border banking group within the private banking division; U.K. Banker A, a 'high-ranking executive' in London and head of a cross-border banking group focusing on clients with ties to south Asia; and Swiss Banker A, a financial adviser based in Geneva."
Entities: Yes
Omitted Income: ?
Estimated Tax Loss: Per plea - $80-200,000
High Balance $4.7 million
FBAR Penalty: $2.37 million
Sentencing Date:;
Court: D NJ
Judge: Linares, Jose (Wikipedia entry here.)
I'll post more when I have more information / insight. In the meantime, here is a good article David Voraceas, HSBC N.J. Client Admits Conspiracy in Offshore Tax Case (Bloomberg 1/7/13). Key quotes from the article.
He used a Swiss charitable trust and a Cayman Islands corporation to hide the proceeds of real estate transactions in India, according to his charging document known as a criminal information.
Sethi also used a British Virgin Islands corporation to hide his ownership of an undeclared Swiss account to “unreported business receipts and reimbursements for actual business expenses” of SanVision, he admitted.
He admitted conspiring with U.S. Banker A, a senior vice president in New York of a cross-border banking group within the private banking division; U.K. Banker A, a “high-ranking executive” in London and head of a cross-border banking group focusing on clients with ties to south Asia; and Swiss Banker A, a financial adviser based in Geneva.
Sethi admitted that from 2001 until 2009, he had undeclared accounts in Switzerland and India. His highest balance of $4.7 million was in 2007, when he sold a house in Watchung for $2.2 million, according to his information.
There was another HSBC client plea few days ago.
ReplyDeleteSee
http://www.justice.gov/usao/nj/Press/files/Gupta,%20Sameer%20Plea%20News%20Release.html
Is this related to HSBC India crackdown or a side effect?
Thanks, I just posted it.
ReplyDeleteWe entered the OVDI 2011. Looks like we will be paying 25% FBAR penalty in addition to the tax, interest plus 20% penalty on the tax. Now, being an Illinois resident, we will have to ammend the Illinois 1040's for 2003 through 2010. Does anyone have gone through Illinois ammends for 2003-2010? How much interest (what is the website to calculate the interest on the Illinois past due tax?) and penalty if any?Please help.....almost broke after the OVDI experience.
ReplyDeleteMy understanding is that you will pay back state tax plus interests and accuracy penalty for all the years that you have opened for OVDI. There is no other penalty (like offshore penalty for state). The interest rate would be much higher than that of IRS. I found it ridiculous that some states would impose 8% on interest rate.
ReplyDeleteThanks, tj. Good information.
ReplyDeleteJack Townsend
The answer varies by state. In my state (apparently) it's the same years as OVDI plus interest but no accuracy related penalty. I'm saying apparently because I haven't gotten a clear answer, so I'd rather not identify the state.
ReplyDelete