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]