Lying Billionaire Says UBS Lied About His Ability To Lie To The IRS

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Billionaire Igor Olenicoff is suing UBS for allegedly not telling him the truth about his US tax liabilities for his Swiss bank account. However, the real case here is which of the two parties has less credibility. Olenicoff says UBS pulled a fast one when it came to his tax liabilities and,"tarred his reputation and cheated him out of millions of dollars." While lamenting his newly shattered reputation, Olenicoff seemingly forgot that he already pleaded guilty to filing a false tax return in 2002 and failing to declare offshore accounts in four different countries from 1998 to 2004. So really this is just a case of some bitter guy trying to bring down an innocent big bank because he got busted, right?

Hard as it may be to believe, this is not the first time UBS has been involved in these types of shenanigans. Olenicoff's banker, Bradley Birkenfeld, revealed that one of the services he provided to clients was diamond smuggling. Birkenfeld once bought diamonds for a client and then smuggled them into the US in a toothpaste tube. This may have been one of the techniques he learned at UBS's fraud training program.

The bank had extensive schemes to avoid getting caught by U.S. regulators, Birkenfeld told Senate investigators. UBS bankers carried encrypted laptop computers, and the Swiss bank trained its staff to dodge detection by U.S. authorities.
The bankers falsely said on customs forms that they were traveling for pleasure, not business, and told clients to destroy offshore records that could be tied to UBS, Birkenfeld said in his guilty plea.

Now you know what 'the most powerful two person financial firm in the world' can do for you.
Billionaire Tax Felon Says UBS Lied in Pledge to Report to IRS [Bloomberg]


UBS's Investment Banking Head May Have To Slash His Own Expenses "Like A Jewish Shopkeeper"

As those of you keeping up with the many trials and travails of UBS know, the last couple years have been fairly brutal for investment banking chief Carsten Kengeter. Pre-tax IBD profit was down 55 percent YoY through June, employees are constantly on his ass about getting paid, the comments he made in attempt to "rally the troops" re: "slashing expenses like a Jewish shopkeeper" were totally taken in the wrong way, some guy perpetrated a $2 billion fraud (which was partially to blame for CK getting passed over for the promotion he was gunning for), and to top it all off, the higher-ups actually accepted his offer to forgo a bonus for 2011, which he would never have put out there if he thought they'd actually go for it. And now, as a thanks for all his hard work, management is publicly mulling the idea of lightening his load and paycheck. UBS is weighing a shakeup at the top of its investment bank that would give a reduced role to Carsten Kengeter and increased responsibilities to his co-head Andrea Orcel, three people with knowledge of the matter said. The board is meeting in New York today to consider a reorganization of the unit that will include cuts centered on the fixed-income operations that Kengeter has been responsible for since 2008, said the people, who asked not to be identified before the matter is made public. An announcement may come when UBS reports third-quarter earnings on Oct. 30, they said...Three senior executives who declined to speak publicly said they expect Kengeter to leave the bank before long. A person with knowledge of Kengeter’s thinking said he doesn’t plan to go. A UBS official declined to comment. Ermotti told staff in a memo this month he’ll take “all actions necessary” to tackle the “paradigm shift” in banking and will continue “remodeling” UBS. He said in July that the market environment has completely changed since the bank announced reorganization plans for the securities unit in November. UBS May Reduce Kengeter Role in Overhaul of Investment Bank Unit [Bloomberg] Related: Was That Wrong? Should Carsten Kengeter Not Have Done That?