July 25,2024

Wyden Continues Swiss Bank Investigation Following Indictment of American Credit Suisse Client on Tax Evasion Charges

New Letter to UBS Group, Which Acquired Credit Suisse in 2023, Seeks Records and Information on Massive, Newly Uncovered Tax Evasion Scheme Abetted by Credit Suisse Bankers

Washington, D.C. – Senate Finance Committee Chair Ron Wyden, D-Ore., continued his investigation of swiss banks abetting tax evasion by U.S. citizens today with a letter to the CEO of UBS Group AG seeking records and information on accounts belonging to a U.S. citizen named Douglas Edelman, who was recently indicted for tax evasion on more than $350 million in income made from the sale of more than $7 billion of jet fuel to the United States military, one of the largest tax evasion schemes in history. Edelman maintained millions in income from U.S. military contracts in undeclared offshore accounts at Credit Suisse, which UBS acquired in 2023. Edelman’s indictment indicates that Credit Suisse employees were aware as early as 2008 that his accounts had not been disclosed to the IRS, but rather than disclosing them the bank helped Edelman move the money elsewhere to continue to evade taxes.

Senator Wyden’s letter seeks to ascertain whether Credit Suisse failed to disclose the accounts to the IRS or the Finance Committee in the course of its ongoing investigation, the identities of Credit Suisse bankers involved in the tax evasion scheme, and when the accounts were first disclosed to the U.S. DOJ, as required by Credit Suisse’s plea agreement. Wyden’s letter also seeks information on efforts by Credit Suisse employees to close the accounts and send them to Singapore-based financial institutions to help Edelman avoid detection by U.S. authorities.  

Additionally, Wyden seeks updated information from UBS on the number of undeclared accounts in excess of $20 million at Credit Suisse that have been identified and reported to the Department of Justice since the Committee began its investigation of Credit Suisse in April 2021.

“I write seeking information related to accounts held at Credit Suisse AG (“Credit Suisse”) held by Douglas Edelman, a U.S. defense contractor indicted for tax evasion on more than $350 million in income made from the sale of jet fuel to the United States military … Recently published federal court records include substantial new evidence that Credit Suisse and its employees played a significant role facilitating Edelman’s alleged criminal tax conspiracy,” Wyden wrote. “By closing Edelman’s accounts without telling the DOJ in a timely manner, it appears Credit Suisse employees enabled what appears to be one of the largest individual tax evasion schemes in U.S. history to go undetected for more than a decade. The new revelations also raise fresh concerns that Credit Suisse’s breaches of its plea agreement were greater than previously known, as well as concerns regarding the thoroughness of Credit Suisse’s responses to the Committee’s investigation, which remains ongoing.”

The full text of Senator Wyden’s letter to UBS is available here. The questions in the letter are below:

  1. Were all accounts owned and controlled by Edelman at Credit Suisse, including entity accounts for Aspen Wind Corporation (“Aspen Wind”) and Bartol Limited (“Bartol”), included in the population of U.S. customer accounts included in the plea agreement Credit Suisse signed with the DOJ on May 19, 2014? If not, please explain why.
  2. When did Credit Suisse first disclose Edelman’s accounts, including the Aspen Wind and Bartol entity accounts, to the DOJ?
  3. What was the maximum value of all of Edelman’s accounts, including the Aspen Wind and Bartol entity accounts, prior to closing the accounts in 2009?
  4. Please provide a list of all disclosures made by Credit Suisse and/or UBS to the DOJ under Section II.D.2 of the DOJ’s Swiss Bank Program in relation to accounts at Credit Suisse owned or controlled by Edelman, including the Aspen Wind and Bartol entity accounts. For disclosure, please include the date the disclosure to the DOJ was made, the maximum value of the accounts and the name and function of all Credit Suisse employees affiliated with the accounts included in the disclosure.
  5. Please provide the names of all Credit Suisse employees involved in closing Edelman’s Credit Suisse accounts in December 2008 and January 2009 and transferring those funds to accounts at Julius Baer.
  6. According to Edelman’s indictment, in November 2008 Credit Suisse notified Edelman and his associates that [Edelman] “had a choice: (1) close his Credit Suisse accounts and move the money, or (2) disclose the accounts to U.S. authorities”. Please provide all November 2008 records and communications related to Edelman’s accounts at Credit Suisse, including correspondence between Credit Suisse employees and Edelman and/or his associates, as well as internal correspondence between Credit Suisse employees discussing Edelman’s accounts.
  7. Please explain in detail what actions Credit Suisse employees took in relation to Edelman’s accounts upon learning that Edelman had failed to disclose his accounts to U.S. authorities, as required by U.S. law.
  8. According to Edelman’s indictment, in May 2008 Credit Suisse questioned the source of funds in Edelman’s accounts. Did this due diligence regarding the source of funds identify that the proceeds were related to contracts for the sale of jet fuel to the United States military? If not, why not?
  9. According to Edelman’s indictment, on December 8, 2008, Edelman and his associate “directed Credit Suisse to close the Aspen Wind and Bartol accounts and move the funds to the Sunage Foundation account at Bank Julius Baer (Singapore), where [Douglas Edelman] was a signatory.” Please provide all records related to the closing of Edelman’s accounts and related transfers to Julius Baer.
  10. Please provide all correspondence between Credit Suisse and Julius Baer related to the transfer of funds from Edelman’s accounts to Julius Baer.
  11. On October 11, 2022, Credit Suisse disclosed to the Committee that since 2014 Credit Suisse has disclosed to the DOJ a population of previously undeclared accounts belonging to U.S. persons with a value of approximately $1.3 billion. Please provide an updated number of previously undeclared accounts and the value of those accounts.
  12. Please provide the number of previously undeclared accounts belonging to U.S. persons Credit Suisse has reported to the DOJ since April 27, 2021? Please also provide the value of those accounts.
  13. Credit Suisse previously disclosed to the Committee that in response to the Committee’s investigation and federal law enforcement activity, it identified 23 client relationships involving U.S. persons involving undeclared accounts with a value in excess of $20 million. Please provide the following information for this population:
    1. How many of the 23 client relationships are currently subject to ongoing investigation by the DOJ or U.S. Internal Revenue Service (“IRS”)?
    2. Have all potentially undeclared accounts associated with these 23 client relationships been reported to the DOJ and U.S. Treasury Department?
    3. The maximum value of the accounts for each of the 23 client relationships.
  14. Since the publication of the Committee’s report on March 29, 2023, have any additional client relationships involving U.S. persons with undeclared accounts worth $20 million or more been identified? If yes, how many? Please also provide the account value of this population?
  15. Has Credit Suisse discovered any additional undeclared accounts, similar to those of the family of dual U.S. – Latin American nationals identified in the Committee’s report, that were closed and transferred out of Credit Suisse between August 1, 2008 and May 19, 2014? If yes, please provide the number of accounts and the value of those accounts.

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