Credit Suisse abetted possible criminal tax evasion, U.S. Senate committee alleges

By Steve Goldstein

Credit Suisse may have abetted tax evasion of nearly $100 million for almost a decade, a new report from a U.S. Senate committee alleged.

The report says the Swiss bank. which in 2014 plead guilty to helping U.S. clients conceal offshore assets and income from the Internal Revenue Service, helped a family of dual U.S.-Latin American citizens transfer nearly $100 million to other banks in Switzerland without notifying the Department of Justice.

Credit Suisse (CSGN.EB) allegedly helped U.S. businessman Dan Horsky conceal over $220 million in offshore accounts from the IRS, and found almost two dozen additional large, potentially undeclared accounts belonging to ultra-high-net-worth citizens. Horsky was sentenced to prison in 2017 on allegations he hid over $220 million in offshore banks.

The report says Credit Suisse ahead of the report's release disclosed a review identifying 13 large accounts in excess of $20 million that may be held by U.S. citizens.

"This report underscores that these tax cheats often hide their assets with the willing assistance of bankers at foreign financial institutions," said the report, from the Democratic staff of the Senate Finance Committee.

The committee says Credit Suisse did cooperate with its investigation, a point the bank itself made, which added that it did not tolerate tax evasion.

Several additional Swiss banks may be currently holding large secret offshore accounts for U.S. persons, the report says.

Credit Suisse has agreed to be purchased by UBS (UBS) with the help of the Swiss government.

"The Committee also believes that any entity that acquires Credit Suisse or the Swiss government should assume responsibility for any fines resulting from anypotential violations of Credit Suisse's plea agreement with DOJ," it says.

The report didn't have a noticeable impact on the shares of either Credit Suisse or UBS in Zurich action. UBS separately said Sergio Ermotti will return to the bank as its chief executive.

-Steve Goldstein

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03-29-23 0801ET

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