"Disengage from closer ties with your dearest friends, suggests Konrad Hummler, a former banker, as he endorses the recent hostilities towards Switzerland"
In the heart of St. Gallen, Switzerland, a neoclassical villa stands tall, a testament to the city's rich history. Today, this villa houses the Bach Foundation, a renowned think tank. But its past is far from ordinary.
Once upon a time, this villa was a bustling casino, a hub of activity outside the city walls. Fast forward to 2012, and this villa was the headquarters of Bank Wegelin, the oldest bank in Switzerland, which made headlines for all the wrong reasons.
Bank Wegelin was indicted by the United States government in 2012 for tax offenses. The bank was accused of helping U.S. taxpayers hide approximately $1.5 billion in undeclared assets, an act designed to evade taxes. This was a significant moment, marking the first time a foreign bank was sentenced for such offenses in the United States. Bank Wegelin was ordered to pay a penalty of $58 million for its role in assisting Americans in concealing assets offshore to avoid IRS detection[1].
This indictment was part of a broader crackdown by U.S. authorities, which began around 2008, on Swiss and other foreign banks that helped wealthy Americans evade taxes. Another major Swiss bank, UBS, reached a deferred prosecution agreement with the DOJ in 2009, paying $780 million and agreeing to disclose clients who were using illicit accounts to hide taxable income. Bank Wegelin's indictment and sentencing were part of this continuing U.S. initiative to target tax evasion through offshore accounts[1].
Interestingly, Konrad Hummler, who is associated with the Bach Foundation, lost his life's work due to the indictment of Bank Wegelin. Hummler was a prominent figure in the Swiss banking industry, and his career was deeply tied to the bank. However, the fall of Bank Wegelin left him with nothing.
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[1] Source: https://www.nytimes.com/2013/03/24/business/international/bank-wegelin-to-pay-57-million-to-settle-tax-evasion-charges.html
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