UBS Whistleblower Going to Jail

[Satori]

adding an excerpt:

So, the government stopped AIG from revealing information about its bailout--likely in violation of federal securities law.  Disclosure rules supposedly apply to all public companies, and when an organization is troubled, disclosures of this kind are all the more important. There's not a "too big to fail exception" for companies on federal life support. 

UBS, the largest bank in Switzerland, received $5 billion from AIG.  And Brad Birkenfeld, the former banker who blew the whistle on how UBS helped tens of thousands of super-rich Americans dodge taxes (and in doing so, shattered centuries of Swiss bank secrecy), is going to jail today for a single count of aiding tax evasion.

What's wrong with this picture?

Prosecutor, Kevin Downing, admitted that "but for Mr. Birkenfeld, this scheme would not have been discovered."

Why Birkenfeld, the whistleblower, is the only person going to prison out of the tens of thousands of tax dodgers and enabling bankers, is a complicated story about which multiple books are being written.  Theories range from UBS being one of the biggest contributors to the political campaigns of President Obama and members of Congress, to the United States’s desire to maintain good relations with our Swiss allies, who serve as an intermediary with Iran.

that's right
the guy who told the truth is the one doing time

now that I think about it
Swiss bankers aid and abet CRIMINAL ACTIVITIES ALL AROUND THE WORLD

but as we now know
that's what bankers do everywhere

http://www.dailykos.com/storyonly/2010/1/8/822963/-Birkenfeld-Going-to-Jail;-Geithner-Going-to-Work

[Suspect Zero]

No kidding....you know when I watched District 9 and the whistleblower did time I thought to myself "how visionary, I wonder when we will see this for real".  Well, my question has been answered.

[mtlouie]

It's a message to all the other whistle blowers.  At least he's still alive.  So far.

[BenjaminTheDonkey]

Well, d’oh! Do I feel like a fool!
That’s NOT what they taught us in school.
This land we adore
Does things we ignore
To benefit others who rule?

[jonny quest]

I bet he won't get the money either

[pamela]

this....I don't know what to say about something so horrible.
damnation.

[BenjaminTheDonkey]

These stories just leave us fainthearted
As we sink into doom uncharted;
The horror perverse
Just keep getting worse,
And we know, we’ve only just started.

No morals from play, psalm, or song,
The jungle law ruled all along;
Some things we thought civil
Were insincere drivel—
It looks like we had it all wrong.

[TechGuy]

He is guilty of violating many laws. He did it, because he would recieve about a hunderd Million USD in Whisleblower rewards for tax fraud. He expected that for a 3 to 5 years in jail he would net about 100 to 120 Million. Not a bad deal. He is just as guilty as the rest of the bunch at UBS.

[cygnus]

He is guilty of violating many laws. He did it, because he would recieve about a hunderd Million USD in Whisleblower rewards for tax fraud. He expected that for a 3 to 5 years in jail he would net about 100 to 120 Million. Not a bad deal. He is just as guilty as the rest of the bunch at UBS.

So, are they all going to be doing time, too?  And what of the tax evaders?

Yeah, his motives aren't pure - but why is he conspicuously the ONLY one being sent down the river? 

[mtlouie]

Here's something from an old case that my ex was aware of:

There was a group of people that did something that was illegal.  I can't remember what it was, tax evasion?  Something.

Anyway, of this group, one guy got chosen to take the blame and do the jail time in return for a bigger cut of the pie. 

That was something that was floating around many years ago. 

So, that could easily be the case.  Or, he was blackmailed.  Who knows?  Sounds like more big-business crap. 

[urbanfarmer]

These stories just leave us fainthearted
As we sink into doom uncharted;
The horror perverse
Just keep getting worse,
And we know, we’ve only just started.

No morals from play, psalm, or song,
The jungle law ruled all along;
Some things we thought civil
Was insincere drivel—
It looks like we had it all wrong.

sadly lovely. 

[bobd]

As a newbie and one who is in general agreement/sync with the rest of the forum here, I hesitate to bring up a few points that aren't well considered when reviewing this article.
First, It's against Swiss law for an agent of a swiss bank to reveal account details of a depositor. It's a law they (the swiss) take quite seriously because it has garnered them a lot of business over the years. It's probably true that they protected Nazi's as well as Jew's seeking banking protection during the 2nd WW but nonetheless the country acts as a financial refuge for folks seeking banking privacy. That being said, it's a pretty serious banking law that was broken by the whistle blower.
2). The "whistleblower" did so not because these depositors were breaking a swiss law but allegedly breaking a foreign law. It's been reported that he was bribed, I don't know the facts but it's doubtful this act entered his head without a monetary consideration. Now, how many of you who work for a business here in the U.S. are that concerned with whether your clients are in compliance with another countries tax law when they transact business with you?

The point I am trying to convey is twofold. 1). We (Americans) have no banking privacy or own any asset that cannot be attached or otherwise seized by our gov't. That is just a fact. The IRS has almost god-like powers to fuck with you without any you having any recourse against those who decide on a whim to freeze your bank account, take your car or house. Don't believe me? Just do a little bit of research.
Why do you suppose that the US gov't is so eager to break down the barriers to banking secrecy in Switzerland? Is everyone that has a swiss account a tax dodger?
Here's the deal. I moved a fair amount of my assets overseas a few years back. I did so because I believe in freedom and am outraged that my gov't can act against me without any judge or court of law proving I did something wrong. That is not freedom. It's a constant and real threat of poverty should I insult some pissant GS15 with an axe to grind. I'm not going to live under that threat without at least attempting to mitigate that risk.
Privacy is a big deal with me and I think the US gov't, and by that I mean the dickheads that run it, are totally out of control. Whether it is my health records, banking records or who I had drinks with last friday night, the gov't thinks they should be privy to that information. Don't fall into the trap of sympathizing with the asshats that are intent on cataloging every movement you make so that they can eventually tax it or outlaw it.
I declare all income derived from any source (overseas accounts included) on my tax return. An international account is totally legal (to date). To imply every international account holder is evading taxes is exactly the kind of disinformation the MSM and US gov't employs to soften up US citizens for another power grab. Expect to see a new law that attempts to restrict your money going "offshore" at some point in the near future. The gov't will not receive any blow back from the public because they (the public) doesn't perceive this as one more law that takes away another piece of their freedom. They look at it as a hit against rich people trying to evade taxes and hurt the taxpayers of America.
Here's a newsflash for folks with that mindset. The US gov't spends almost twice as much as it takes in with taxes and we can't even TALK about the outyear obligations that number in the tens of trillions. The US is bankrupt and no amount of tax dodging, tax collecting OR increase in taxes is going to make the slightest bit of difference in the ultimate destination for the US of A. Don't let this attempt to breach the swiss banking laws turn you into someone who cheers the US gov't into further restricting rights of Americans. No matter how much in back taxes they collect from this dog & pony show, it won't make up for your additional loss of liberty or amount to anything other than pissing in the wind with regard to our deficit. IMO.

[BenjaminTheDonkey]

urbanfarmer, thank you.   

[BenjaminTheDonkey]

Cognitive dissonance will thrive
As we do the doomer dive;
When might makes right,
What once was wrong might
Become suddenly right to survive.

[cygnus]

bobd, I think you are correct in that there are no innocent parties here, and the guy who is being jailed broke the law.  But so did many other people, and what I  wonder is, why aren't they also in trouble?

Well, I don't really wonder, but that was the point I was trying to make.  I am not cheering on the US gov - I know what they were really trying to do.  I also know that they have been slowly over the years drawing the noose around those who want to expatriate, and this is probably part of that plan, along with limits and high exit taxes on moving assets outside the country.  I don't have problems with people legally keeping money in overseas accounts - heck, if I had any money to speak of outside my PMs and preps and pension account I would seriously consider doing that as well.  (Pension account cannot be touched, unfortunately, but that's another story.)

So, for at least some of us, you are not in disagreement at all.