I was going to do it, but how could I do a more entertaining job than, say, The Nation?

-- MDT

Labels: hearing, Heinrich Kieber, LGT, tax evasion, UBS

A 66 year old retired real estate agent named only as Elmar S. was convicted in a one day trial of hiding millions of euros over five years via two Liechtenstein foundations.

To settle his tax tab Elmar was order by a Bochum court to pay a € 7.5 million fine, with € 1 million of that going to charity.

For the record, this is roughly the same amount that informant Heinrich Kieber was paid by the German government for the stolen customer records he purloined from former employer, LGT Bank.

That's one case down, hundreds more are expected. Germany has announced that 210 citizens are under investigation, conducted at least as many raids, brought cases against 350 and said that it is mulling over 400 more.

Already the announcement of the enforcement action has brought in € 110 million from tax delinquents.

You can argue with the tactics, but you can't argue with success.

-- MDT

Labels: Elmar S, Heinrich Kieber, LGT, Liechtenstein, tax evasion

In anticipation of a hearing scheduled for this morning, the Senate Permanent Subcommittee on Investigations has released a lengthy report detailing the results of their six month investigation into the practices of LGT bank of Liechtenstein and Switzerland's UBS.

Much of the impetus for this of course stems from one Mr. Heinrich Keiber and his famously stolen list of clients of Liechtenstein bank, LGT. Kieber is currently in hiding - a sound policy when you've royally pissed off an entire black book's worth of the world's wealthiest people.

Authorities were also aided by former UBS banker Bradley Birkenfeld who recently plead guilty to aiding clients at UBS in evading taxes. Birkenfeld hipped authorities to billions in undeclared accounts of U.S. clients that were being discreetly held by UBS.

Mario Staggl, another UBS banker implicated in the tax evasion scheme, is currently a fugitive - wanted for failing to appear in U.S. federal court to answer charges that he aided clients in hiding some $200 million from the tax man. And yet Staggl, for a fugitive from justice, is living quite the normal life in Liechtenstein.

I haven't yet had a chance to review the Senate sub-committee report, which is not available online as of this writing. According to media reports, here are a few of the faces you can expect to see and names you can expect to see mentioned:

Frank Lowy - The Westfield Group's billionaire shopping mall magnate. Make it a family affair - Frank Lowy and sons Peter, David and Stephen are all under investigation. Peter Lowy is expected to appear at the hearing.

Harvey Greenfield - Toy industry executive of Commonwealth Toy and Novelty. Both Greenfield and son Steven are under investigation. Greenfield is expected to appear at the hearing.

James Albright Marsh - A Florida contractor, now deceased. One of Marsh's two sons, Shannon Marsh is on the witness list for the subcommittee hearing but is not expected to appear.

Richard M. Chong, a venture capitalist and (I believe) a Partner a Sycamore Ventures.

William Wu - a "wealthy Chinese businessman based in Queens, New York." Wu is also scheduled to testify at the hearing.

Igor Olenicoff, the California real estate tycoon. Olenicoff has already plead guilty to tax evasion charges and agreed to pay $52 million to the IRS.

In the most rousing bit of theater, Heinrich Kieber - the elusive informant that sold off LGT's private banking client list - is expected to appear via video to testify (scratch that - it has been reported as a pre-taped statement). That should still be worth tuning in for - no doubt.

Other notable names on the witness list are Martin Liechti and head of UBS Wealth Management Americas; and Mark Branson, chief financial officer of UBS Global Wealth Management and Business Banking. You may recall that Liechti was previously detained by U.S. authorities.

You can view the full witness list for the hearing online.

-- MDT

Labels: Bradley Birkenfeld, Heinrich Kieber, LGT, Mario Staggl, tax evasion, UBS

Apparently Heinrich Kieber, currently the world's most famouse police informant, has been keeping up a pen-pal relationship with his benefactors at the German BND. Their last letter from Kieber was received right about he time his information set loose a series of raids on tax evaders in Germany. His tone? Worried, according to Spiegel.

And more, from France24.com:

"You are putting my life in danger," Heinrich Kieber wrote to German intelligence services, according to German weekly Focus in an article released Saturday in advance of publication. The informant has blamed the intelligence services for not keeping his identity secret and asked them to provide him with a new identity so that he can relocate to South America. His request has been refused, Focus reported.

As far as we know, Kieber is in hiding and still among the living, with Australia being his most likely port of call. How long he stays that way remains to be seen. Amongst those who Kieber outed to the German government for tax evasion, are those who don't find such things amusing and might be prone to retaliation.

The Russian mob is one group that has been mentioned along with the odd royal family or petty dictator - any of whom could decide to make it difficult for Kieber to enjoy his new found wealth.

-- MDT

Labels: BND, Heinrich Kieber, LGT, tax evasion

I was inclined to let it slide the first time the FT mentioned that authorities in Liechtenstein are pursing potential accomplices of known informant, Heinrich "Henry" Kieber, but now they've gone and mentioned that word accomplices for a second time.

That gets my radar up...

-- MDT

Labels: Germany, Heinrich Kieber, LGT, Liechtenstein, tax evasion