60 Minutes featured Birkenfeld case
The CBS news magazine 60 Minutes featured a story about UBS whistleblower Bradley Birkenfeld this Sunday. In the story, Birkenfeld says he is the first Swiss banker ever to speak publicly about the famously secretive industry. He provided inside information that helped uncover thousands of untaxed Swiss accounts at his former employer, UBS. The accounts were owned by Americans and, so far, not one of their owners has gone to jail. But Birkenfeld is scheduled to enter a federal prison on January 8 for a 40-month term that he thinks he doesn't deserve. The interview was broadcast Sunday, Jan. 3, at 7 p.m. ET/PT. Video of the story is now available from CBS.
"I gave them the biggest tax fraud case in the world. I exposed 19,000 international criminals. And I'm going to jail for that?" asks Birkenfeld. When reminded by Kroft that he was an enabler for clients who broke the law, he responds, "And I am the only one going to prison. Out of 19,000 accounts and no Swiss bankers."
According to Thomas Perrelli, the associate attorney general of the United States, Birkenfeld's information helped his office get "the accounts that are the core of the fraud." The information led to UBS making a settlement with the U.S. government that included a fine of $780 million. But because Birkenfeld was not initially forthcoming about his largest American client, he was prosecuted. "If he had come forward and told us everything that he knew…in the summer of 2007, we think it's likely he wouldn't have been prosecuted," says Perrelli.
Six Americans who had off-shore accounts at UBS have pled guilty but not gotten prison time. Raoul Weil, the UBS official once in charge of its Wealth Management operations, has been indicted but is a fugitive from justice in Switzerland. Martin Liechti, a Swiss citizen who was UBS' top private banker, was detained in Miami for four months on a material witness warrant, but allowed to leave the country in August. He was never charged in the U.S.
In his interview with Kroft, Birkenfeld also reveals little-known aspects of being a Swiss banker, including what kinds of services he provided clients, such as acting as a personal shopper "on a concierge level." Buying valuables is one way of hiding and moving assets, but Birkenfeld says it was just servicing clients the Swiss banking way. "People would ask you to make purchases for them, possibly maybe a car or a chalet - possibly -- a nice watch. So you would also cater to the client in that regard and then deliver it to them upon their choosing,” he tells Kroft. "It could be in their hotel room. It could be in…another country."
In one case, he purchased diamonds for a U.S. client and brought them into the country concealed in a toothpaste tube. Birkenfeld says the stones were not worth more than $10,000 and did not need to be declared, so no laws were broken. Then Kroft asks, "If it was legal why did you put them in a toothpaste tube? I'm having trouble with that." Birkenfeld replies, "Oh, it was just a way of carrying them so I wouldn't lose them."
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Mr. Birkenfeld is not the first to suffer the heavy hand of government for reporting inconvenient truths. How many of the 4450 tax non-payers who are on the UBS lists are in positions of political power? How many of the Congressional millionaires club are UBS clients?
Tell the truth about powerful people and you are asking to be squashed.
Now that's U.S. JUSTICE!!!!!!
It's unbelievable to me that this man is going to prison.
A regular Joe Blow does "the right thing" and gets stabbed in the eye.
I hope and pray that this guy gets out and sues the SHIT out of everyone involved and spends the rest of his life exposing these people for who they really are-- RICH, CROOKED THEIVES.
You're in my prayers my friend.
As a friend of America, I have to say that I, and I should imagine most ordinary Americans (if they know the details of the case) will be appalled by this injustice. It points us to the corrosive and destructive corruption of American values and to the wider and incipient takeover of the democratic system. The rich are protected and mollycoddled while hard working ordinary citizens are put through the grinder. From massive bank bailouts, a form of corporate socialism to the subsidised military-industrial-academic complex, one of the worlds greatest republics lurches ever closer to a state of 'inversed totalitarianism. The writing is so so so on the wall. We can only hope that unlike in this particular instance, the good, the just and the free will triumph over these godless corporate oligarchies which increasingly rule American and indeed global institutional structures of governance. Let truth, freedom and a 'just' rule of law - rise and rule !
...with love from a friend of America.... may the force be with you !
I am writing to you because I am deeply concerned about the effect the Bradley Birkenfeld case will have on national and international anti-corruption movements.
By failing to protect Mr. Birkenfeld and other whistleblowers the United States sends the clear message that people who report the crimes of the powerful will be penalized for their honesty and courage.
The actions of the United States in this case have the effect of establishing a system of justice wherein those who have financial and political power enjoy a degree of exemption from the penalties normally levied for crimes they commit. The actions of the government give lie to the statement "With liberty and justice for all..." and undermine our Constitution, our Bill of Rights and our national ethic of equality before the law.
By failing to enforce the law equally to all, those who have participated in the fraudulent prosecution of Mr. Birkenfeld have both violated the law and Constitution as well as their oaths of office and therefore should be removed from their positions. Abuses of power must not be tolerated if we are to remain a free country.
I want all whistleblowers to feel free to report fraudulent and corrupt activities and I want those whom we entrust with the power of the law to administer it in a manner consistent with the Constitution.
This is not suprising to me I was the first Qui Tam Relator Plantiff after the 1986 amendment to the False Claims Act to file and Win both a Criminal and Civil Case. Nothing that the DOJ and the DOD and the Supreame Court suprises me anymore. I hope Bardely has kept the list of over 50,000 American Millionaires/Billionires hiding their money from the IRS in Switzerland. I believe he was sent to prison in order to keep him quiet about all the American Politicians and big wigs hiding their money from the GOOD American People who pay their taxes. God Bless You Bradely !