By the Constantine Cannon Whistleblower Team

On May 5, the DOJ announced that Credit Suisse Services AG pleaded guilty and agreed to pay over $510 million to resolve allegations that it conspired to help wealthy Americans evade taxes through secret offshore accounts from 2010 through 2021. The whistleblowers who revealed the bank’s misconduct to the government were all former Credit Suisse employees.

The whistleblowers came forward with evidence that, despite a 2014 plea agreement in which the bank paid $2.5 billion for similar conduct, Credit Suisse AG continued to facilitate tax evasion for U.S. clients by helping them hide assets and income offshore. According to the DOJ, the bank assisted U.S. clients in concealing over $4 billion across at least 475 offshore accounts, including those in Singapore.

Credit Suisse AG allegedly allowed U.S. customers to open and maintain undeclared offshore accounts, and were offered a variety of offshore private banking services that helped ultra-high-net-worth individuals hide their assets and income from the IRS. Credit Suisse employees allegedly falsified records, processed fictitious donation paperwork, and managed billions of dollars in accounts without documentation of tax compliance, among other violations. This also led to their continued failure to file Foreign Bank Account Reports (FBARs) disclosing foreign accounts.

This misconduct came to light after UBS AG Singapore merged with Credit Suisse AG Singapore in 2023. During the merger, UBS discovered undeclared accounts held at Credit Suisse AG Singapore from 2014 to June 2023. Credit Suisse AG Singapore failed to properly identify the true beneficial owners of accounts and adequately investigate them. UBS froze some of those accounts, voluntarily disclosed information about the accounts to the DOJ, and cooperated with the investigation.

As part of the resolution, Credit Suisse Services AG agreed to pay $510,608,909 in penalties, restitution, forfeiture, and fines. The resolution also includes a guilty plea and a non-prosecution agreement.

Reporting Tax Fraud to the IRS

Constantine Cannon whistleblower partner Marlene Koury explained: “Whistleblowers see what happens behind closed doors and can expose misconduct that would otherwise go undetected. This case shows that even the largest financial institutions cannot escape accountability when insiders step forward to report fraud.”

The IRS Whistleblower Program entices people to share knowledge of fraud or misconduct, and rewards whistleblowers with between 15 to 30% of the government’s action if it results from a whistleblower’s reporting.

According to CNBC and The Wall Street Journal, the whistleblowers in this case worked at Credit Suisse for over 10 years and they provided the government with information about the bank’s breach of its 2014 plea agreement. The whistleblowers could share an award of up to $150 million.

Our Firm Helps IRS Whistleblowers

Constantine Cannon’s whistleblower attorneys understand the complicated and ever-changing landscape of whistleblower laws. Our team can help whistleblowers submit stronger claims, connecting the whistleblower’s evidence with applicable laws. Thorough submissions will have better chances of success in encouraging IRS officials to investigate fraud and for whistleblowers to obtain the largest possible rewards.

If you would like more information, or have a potential case, contact us for a confidential consultation.

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Office of Public Affairs, Department of Justice Press Release

Read Credit Suisse Services AG Pleads Guilty to Tax Crimes, Agrees to Pay $510M+ In Case Involving Whistleblowers at constantinecannon.com