Ugandans press for whistleblower protection and payment

Uganda's The New Vision reports that the country's Parliament is debating a Whistleblower Bill to protect disclosures of public and private corruption.  Legislators are debating whether protected disclosures should be made to regional officials or to national offices.  Perhaps someday they will protect all disclosures of corruption.

Meanwhile, the same article reports that a tax whistleblower is pressing for payment of a promised reward.  This whistleblower helped the government collect 3.8 billion schillings (about $1.5 million) in taxes between 2002 and 2005. However, he still has not received his entitlement of ten percent (10%).  He has filed a court claim for payment, and as a result, his identity has been disclosed.  The New Vision reports that he is now in "grave danger."

While The Whistleblower Sits in Prison, More People May Walk Away

On January 28, 2010, the Washington Post announced that the Swiss government has suspended the disclosure of information about tax cheats to the United States under a February 2009 “deferred prosecution” agreement and may seek to renegotiate the deal.  Under the agreement the Swiss government was supposed to provide the U.S. with 4,450 accounts of the 52,000 secret accounts not declared to the IRS.

Basically, this means that 14,700 people walked away without prosecution under the IRS amnesty program, the head of entire illegal UBS program Martin Liechti was allowed to return to Switzerland without prosecution, the 4,450 tax cheats are likely to escape prosecution, and Bradley Birkenfeld (the person responsible for blowing the whistle and ending the illegal UBS program) is still the only banker sitting in prison.

When will the U.S. government wake up?  Bradley Birkenfeld’s prison sentence is not only unjust in terms of how they treated every other person associated with the UBS scandal, it is permanently harming national and international efforts to fight corruption.  Once again, what whistleblower is going to want to come forward after seeing how Mr. Birkenfeld was treated?

Please TAKE ACTION to stop this injustice now!

Groups ask President Obama to pardon Birkenfeld

Leading national and international anti-corruption groups have joined the National Whistleblowers Center (NWC) in a clemency campaign on behalf of UBS whistleblower Bradley Birkenfeld. In an open letter President Barack Obama, the groups request a presidential pardon for Mr. Birkenfeld, or commutation of his prison sentence to time served to “reverse the devastating impact Mr. Birkenfeld’s case will have on international law enforcement efforts.“

The National Whistleblowers Center, with support from public interest groups, is urging people to personally endorse the clemency campaign for Mr. Birkenfeld through their TAKE ACTION program.

Mr. Birkenfeld blew the whistle on UBS bank in Switzerland, exposing a $20 billion tax scheme involving illegal, offshore bank accounts. Despite the government's acknowledgement that the multi-billion dollar UBS tax fraud scheme would have continued undetected without Mr. Birkenfeld's voluntary disclosure, Mr. Birkenfeld commenced serving a 3-year, 4-month prison sentence on January 8, 2010.

The letter states points out that “in return for his extraordinary cooperation with the U.S. government, Mr. Birkenfeld remains the only banker involved the in the largest illegal tax scheme in history to receive a prison sentence,” and advises that “great importance must be placed on the public policy implications of Mr. Birkenfeld’s case, international bankers must be able to come forward to report illegal practices like those exposed by Mr. Birkenfeld.“

Lindsey M. Williams, Director of Advocacy and Development, National Whistleblowers Center, said, “Sadly, saving the American taxpayers billions of dollars was not enough to save Mr. Birkenfeld’s freedom. A presidential pardon is the only way to correct this injustice.”

Birkenfeld tells WSJ about high level cover-up

UBS whistleblower Bradley Birkenfeld told a Wall Street Journal reporter that the government's decision to send him to jail arises from “a cover-up at the highest levels.” Brikenfeld noted how the UBS clients who actually cheated on their taxes got either house arrest or probation, but the messenger who brought the key information to the US government is now in jail.

The WSJ's Thomas Coyle reports that,

Whatever his culpability, Birkenfeld helped set in motion a chain of events that included UBS agreeing to pay a large fine to the U.S. for its role in helping an initial list of several hundred Americans hide money in Swiss accounts, Switzerland changing its laws to allow banks to share the names of several thousand U.S.-based Swiss account holders, and thousands of Swiss-account holders coming forward under the terms of a voluntary disclosure program.

Birkenfeld disclosed that among his clients who used UBS to evade taxes are a wealthy US politician and a Hollywood movie star. Follow this link to TAKE ACTION TO SUPPORT BRAD BIRKENFELD.

IRS Commission: UBS program brought in "billions"

Speaking on the Diane Rehm Show today, IRS Commissioner Doug Shulman said that the agency's amnesty program for US citizens who hid their assets in off-shore accounts brought in "billions" of dollars. That program, of course, was prompted by the disclosures of former UBS employee Bradley Birkenfeld. Over 15,000 taxpayers came forward because they faced criminal prosecution once UBS was forced into turning over its records revealing the huge scheme to help Americans evade their taxes. Audio of the interview is available here. Although Commissioner Shulman addresses the UBS scandal earlier in the show, his comment about the huge recovery is in the last ten minutes of the hour-long interview.

As Birkenfeld reports to jail, Swiss court toughens bank secrecy

On the same day that UBS tax whistleblower Bradley Birkenfeld had to report to federal prison, a Swiss court issued an order saying that FINMA, a Swiss regulatory agency, erred in ordering UBS to turn over information about 300 clients. The court concluded, according to Reuters, that FINMA's unilateral action weakened Switzerland's strict bank secrecy rules. The report notes that the investigations into Switzerland's biggest bank had prompted clients to withdraw huge sums.

Birkenfeld enters jail after initiating disclosure of UBS tax fraud scheme

At 2 pm today UBS whistleblower Bradley Birkenfeld surrendered to U.S. authorities and commenced serving a three-year and four-month sentence at the Schuylkill County Federal Correctional Institution in Minersville, Pennsylvania.

Stephen M. Kohn, the Executive Director of the National Whistleblower Center and one of Mr. Birkenfeld's attorneys issued the following statement:

"An American tragedy.  A disgraceful miscarriage of justice. An insult to every honest American who must work hard and pay their taxes.  The imprisonment of Bradley Birkenfeld, the most important tax whistleblower in history, is shocking and unjustified. This decision is not only grossly unfair and personally harmful to Mr. Birkenfeld, it will also have a radical chilling effect on the willingness of other bankers to step forward and expose fraud. This is devastating to any efforts to expose the use of illegal offshore bank accounts by criminals who want to avoid taxes."  

"After a careful investigation, we have now demonstrated that the justifications provided by the Justice Department for this unprecedented act of retaliation against a whistleblower were not true.  Justice Department lawyers misled the public and a court in justifying their reasons for indicting Mr. Birkenfeld and asking the Court to sentence him to a long prison term."

The National Whistleblower Center, through its TAKE ACTION advocacy program, is urging people to contact the Attorney General and request that the Birkenfeld case be reviewed and the decision to imprison him be reconsidered.
 

 

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Stephen Kohn appears on Democracy Now about Birkenfeld case

Attorney Stephen Kohn, Executive Director of the National Whistleblowers Center, and an attorney for UBS whistleblower Brad Birkenfeld, appeared on Democracy Now this morning.

TAKE ACTION by sending a letter to Attorney General Holder

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.


Watch CBS News Videos Online

"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."

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UBS Tax Fraud Whistleblower Person of the Year Honor

Bradley Birkenfeld, the former international banker who blew whistle on the largest tax fraud in U.S. history just received the honor of being named Tax Analysts inaugural annual "Person of the Year." The award recognized Mr. Birkenfeld's contribution in exposing UBS bank's tax fraud scheme and helping the federal government recover over 1 billion dollars in lost tax revenue for U.S. taxpayers. Despite the government's recognition that they would not have discovered the UBS tax scandal without Mr. Birkenfeld, he is scheduled to report to jail on January 8, 2010.  You can do your part to help whistleblowers who are trying to protect our tax dollars by taking action and sending a letter to Attorney General Holder to immediately review Mr. Birkenfeld's sentence.