Saturday, February 7, 2009
UBS Tax Case
"UBS AG is under legal pressure as U.S. prosecutors expand their investigation into whether the Swiss bank helped tens of thousands of Americans avoid paying taxes, said several people involved in the case. U.S. tax investigators believe the number of American clients that UBS helped to avoid taxes could be much higher than the previously disclosed estimate of about 17,000, these people said. ... The bank is in a round of talks with the Justice Department to avert a possible felony criminal indictment by admitting to criminal conduct and paying a penalty in the range of $1.2 billion, these people said", Glenn Simpson, Evan Perez and Carrick Mollencamp at the WSJ, 26 January 2009.
"The departing No. 3 official at the Justice Department, Kevin J. O'Connor, is joining Bracewell & Giuliani LLP as a litigation partner. Mr. O'Connor was U.S. attorney in Connecticut in 2007. ... At Justice, Mr. O'Connor, 41 years old, has been helping to oversee a criminal investigation into UBS AG's private-banking services, which U.S. officials claim have aided U.S. taxpayers in evading taxes", Evan Perez at the WSJ, 26 January 2009.
We'll see who if anyone at UBS goes to prison over this.
Does this mean that Bracewell is not the "go to firm" when a big bank gets in trouble?