The oldest Swiss private bank partnership, Wegelin & Co, is officially sentenced by the Southern District Court in Manhattan, after being found guilty of aiding wealthy Americans to dodge taxes. Funds were sluiced to secret bank accounts, and the rich Americans filed false tax returns with the Inland Revenue Service.
Wegelin already admitted complicity in helping Americans to evade tax on $1.2 billion of private wealth from 2002 to 2010, and agreed to pay $57.8 million to the United States government in restitution and fines.
Wegelin has no branches outside Switzerland, and therefore handled money for US clients via UBS. The bank had believed its policy was entirely legal, and that it could not be prosecuted for it by the US. After the case is settled, Wegelin will close down its banking operations.