Monday, November 7, 2016

Swiss Bank Rats Out NYU Business Professor - Results in Fine of $100M & Up To 5 Yrs in Prison - What Are You Waiting For?
We previously posted October 15, 2016 144 Offshore Banks & Now Financial Advisors Are Turning Over Your Names To The IRS - What Are Your Waiting For? where we discuss that there are, as of October 15, 2016, 144 offshore banks and financial advisors that are turning your names over to the IRS as part of their deferred prosecution agreements. Below is the story about one US citizen who had accounts with one of these banks and how he is now being criminally prosecuted for not addressing his previously undeclared foreign income.

Dan Horsky, 71, a citizen of the United States, the United Kingdom and Israel, pleaded guilty ON  November 4, 2016 to his role in a financial fraud conspiracy involving a foreign bank account containing more than $200 million.  As part of his plea agreement, Horsky paid a civil penalty of $100 million to the U.S. Treasury for failing to file and filing false Foreign Bank and Financial Accounts.
“You can’t hide from the IRS,” said U.S. Attorney Boente.  “Horsky went to great lengths to hide assets in secret accounts overseas in order to avoid paying his share of taxes to the IRS. 
Today’s plea shows that we will continue to prosecute those who engage in this criminal activity.
According to the statement of facts filed with the plea agreement, Horsky was employed for over 30 years as a professor of business administration at a university in New York.  In approximately 1995, Horsky began investing in numerous start-up businesses through financial accounts at various offshore banks, including one bank in Zurich, Switzerland. 
One of these start-up businesses was Company A.  Horsky’s investments in Company A ultimately resulted in approximately $80 million in net proceeds from the sale of Company A’s stock.  However, Horsky only disclosed and paid taxes on approximately $7 million.  By 2008, Horsky’s account contained nearly $200 million.  From 2008 through 2014, Horsky filed false individual income tax returns and failed to disclose his income from, beneficial interest in, and control over his Zurich-based bank accounts.
“Despite his extraordinary wealth, Mr. Horsky concealed funds offshore, failed to report substantial income, conspired to submit false expatriation documents to cover up his fraudulent scheme, and evaded paying his fair share of tax,” said Principal Deputy Assistant Attorney General Ciraolo. 
 “The Department and its partners within the IRS are receiving a tremendous amount of information from a wide variety of sources, and we are using that information to pursue and prosecute individuals like Mr. Horsky, who violate our nation’s tax laws. 
 Today’s guilty plea proves, once again, that taxpayers will pay a heavy price when they choose to secrete funds in foreign bank accounts and evade tax and reporting obligations.”
“Federal income tax compliance should be equally shared among all Americans,” said Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation.  “Conspiring to defraud the government with an elaborate scheme to underreport taxable income is unlawful.  Mr. Horsky’s plea today serves as an important reminder that IRS-CI is committed to bringing to justice those who shirk their federal income tax responsibilities.”
Horsky faces a maximum penalty of five years in prison when sentenced on Feb. 10, 2017.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Do You Have Undeclared Offshore Income ?
Is Your Name Being Handed Over to the IRS?
Want to Know if the OVDP Program is Right for You?
Contact the Tax Lawyers at 
Marini& Associates, P.A.  
for a FREE Tax Consultation
Toll Free at 888-8TaxAid (888) 882-9243 


1 comment:

  1. People familiar with the matter identified Credit Suisse Group AG as the swiss bank who held these funds and ratted out Mr. Horsky.