UBS employee guilty of tax evasion to benefit UBS

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The FT has reported that:

A former UBS private banker has pleaded guilty to charges that he conspired to help a US billionaire evade income taxes after agreeing to co-operate with prosecutors in the case.

They added:

"He's going to tell the government everything he knows about what was going on at UBS," said Danny Onorato, attorney for Bradley Birkenfeld.

That should be fun. Apparently:

It is a recurring theme of this blog that tax havens had deliberately enacted legislation to facilitate this sort of fraudulent transaction. They have been created in the Cayman Islands, the British Virgin Islands, and Jersey in the last few years, and have been available for much longer in Switzerland and Liechtenstein. I stress, this has not been an accident these places have done this deliberately knowing exactly what they were doing. They also did so, knowing exactly who would benefit. UBS is reported to have made approximately $200m per year in revenues from the transactions that Birkenfeld and his colleagues undertook.

Let me be unambiguous. The offshore economy is corrupt, and nothing will change that, until the mechanisms that allow it to operate are outlawed by concerted international action to protect the future of democratic society as we now know it.