Wednesday, August 12, 2020

California Residents Sentenced to Prison for Hiding Millions in Secret Foreign Bank Accounts

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Richard B. Newmanhttp://www.hinchnewman.com
Richard B. Newman is an Internet Lawyer at Hinch Newman LLP focusing on advertising law, Internet marketing compliance, regulatory defense and digital media matters. His practice involves conducting legal compliance reviews of advertising campaigns across all media channels, regularly representing clients in high-profile investigative proceedings and enforcement actions brought by the Federal Trade Commission and state attorneys general throughout the country, advertising and marketing litigation, advising on email and telemarketing best practice protocol implementation, counseling on eCommerce guidelines and promotional marketing programs, and negotiating and drafting legal agreements.

According to a press release issued this week by the U.S. Justice Department’s Tax Division, three California residents were sentenced to prison for willfully failing to report secret foreign bank accounts located in Switzerland and Israel.

According to the DOJ, the individuals willfully failed to file with the Department of Treasury Reports of Foreign Bank and Financial Accounts regarding accounts that they maintained and controlled, many for well over a decade. These secret offshore accounts purportedly held millions of dollars in assets.

“They moved their funds from bank to bank and country to country in an effort to escape scrutiny,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “The clear message is: the days when a U.S. citizen can safely stash money in an undeclared foreign account are over,” Goldberg stated.

“Today’s sentencing should reassure every honest, hardworking American taxpayer that schemes designed to conceal income in offshore accounts will not be tolerated,” said Chief Richard Weber of Internal Revenue Service Criminal Investigation (IRS-CI). “IRS-CI will continue to devote resources to investigate individuals who engage in these types of schemes for the purpose of personal gain by defrauding the U.S. Treasury and the American taxpayer.”

In addition to the term of prison imposed, one individual was ordered to serve one year of supervised release and to pay $337,443 in restitution. He also agreed to pay a civil penalty of $2,674,329.

The second individual was ordered to serve one year of supervised release and to pay $243,019 in restitution. He also agreed to pay a civil penalty of $1,325.121.

The third individual was ordered to serve one year of supervised release and to pay $197,840 in restitution. He also agreed to pay a civil penalty of $951,607.

Contact an FTC defense law attorney to discuss recent federal government actions regarding offshore asset protection structures, as well as the degree to which U.S. and foreign authorities may cooperate in investigating cross-border conduct that impacts United States consumers.

ADVERTISING MATERIAL. These materials are provided for informational purposes only and are not to be considered legal advice, nor do they create a lawyer-client relationship. No person should act or rely on any information in this article without seeking the advice of an attorney. Information on previous case results does not guarantee a similar future result. Hinch Newman LLP | 40 Wall St., 35th Floor, New York, NY 10005 | (212) 756-8777.

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