UBSWhistleblowerGets $104 Million(Links to an external site.)The Wall Street Journal Now a Felon, Former Banker Told U.S. About Tax-Evasion Tactics by UBS and Its Wealthy Clients A former UBS AG banke

Br ad le y Bi rk en fe ld , 4 7 y ea rs o ld , b eg an c o op era tin g w it h U .S . a u th orit ie s i n 2 0 07, w hile s till a t U BS . H e p ro vid ed p ro se cu to rs w it h d eta ile d d esc rip tio n s o f t h e b an k's e ff orts t o p ro m ote t a x e v a sio n a n d c o n fe ss e d t o r u n nin g e rra n ds f o r r ic h c li e n ts , i n clu din g o n e in sta n ce w hen h e s n ea ked d ia m on ds i n to t h e U .S . i n a t o oth p aste t u be. This c o py i s f o r y o u r p ers o n al, n on -c o m merc ia l u se o n ly . T o o rd er p re se n ta tio n -r e a d y c o p ie s f o r d is trib u tio n t o y o u r c o lle a g u es, c lie n ts o r c u sto m ers v is it h tt p s:/ / w ww.d jr e p rin ts .c o m .

htt p s:/ / w ww.w sj.c o m /a rt ic le s/S B1 0000872 39 639 0 4440 17 5 0 45776 4 54 12 614 23770 8 W his tle b lo w er G ets $ 10 4 M illi o n Now a F elo n , F orm er B an ke r T old U .S . A bou t T ax-E va sio n T actic s b y U BS a n d I t s W ea lt h y C lie n ts B y L a u ra S a u n d ers a n d R ob in S id el U pdate d S ep t. 1 1, 2 0 12 7 2 4 p m E T L iv e Q& A Jo in o u r u pco m in g L iv e Q &A , I n ve stin g i n U nce rt a in T im es, a n d s e e w hat e ls e i s c o m in g so on V IE W E V EN TS 6/11/2020 UBS Whistleblower Bradley Birkenfeld Gets $104 Million - WSJ https://www .wsj.com/articles/SB10000872396390444017504577645412614237708 2/6 The c a se l i f t e d t h e v eil o f S w is s b an k s e cre cy t h at f o r d eca d es h ad a llo w ed w ea lt h y p eo p le w orld -w id e t o e v a d e t a xes. U BS i n 2 0 09 a g re ed t o t u rn o ver t h e n am es o f m ore th an 4 ,0 00 a cc o u n t h old ers w ho w ere U .S . t a xp ay ers a n d p ay $ 78 0 m illi o n t o r e so lv e a c rim in al c a se i n vo lv in g s e cre t o ff sh ore a cc o u n ts .

S in ce t h en , m ore t h an 3 3,0 00 U .S . t a xp ay ers h av e c o n fe ss e d t o h old in g u n decla re d o vers e a s a cc o u n ts a n d p aid m ore t h an $ 5 b illi o n i n t a xes a n d p en alt ie s.

M r. Bi rk en fe ld a ls o w as i m pli c a te d . H e p le a d ed g u ilt y i n 2 0 08 to o n e c o u n t o f co n sp ir a cy t o d efr a u d t h e U .S ., a f e lo n y, a n d w as g iv en a 4 0 -m on th s e n te n ce . H e cu rre n tly i s i n N ew H am psh ir e fi nis h in g h is s e n te n ce i n h om e c o n fi nem en t.

U nder a 2 0 06 la w , t h e I n te rn al R ev en ue S erv ic e c a n p ay w his tle b lo w er a w ard s o f u p t o 3 0 % o f t h e c o lle cte d p ro ce ed s.

B ra d le y B ir k e n fe ld , a f o rm er U BS A G b an ke r, a t S ch uylk ill C ou nty F ed era l C orre ctio n al In stit u tio n i n M in ers v ille , P en n., i n A pril 2 0 09.

BLO OM BER G co m in g s o on . L iv e Q& A Jo in o u r u pco m in g L iv e Q &A , I n ve stin g i n U nce rt a in T im es, a n d s e e w hat e ls e i s c o m in g so on V IE W E V EN TS 6/11/2020 UBS Whistleblower Bradley Birkenfeld Gets $104 Million - WSJ https://www .wsj.com/articles/SB10000872396390444017504577645412614237708 3/6 The m ass iv e a w ard , p aid o u t l a st w eek t o a f e lo n s till s e rv in g t im e, s h ow s t h e l e n gth s th e a g en cy n ow i s w illi n g t o g o t o c o lle ct u n paid t a xes, e x p erts s a id . " If Br ad Bi rk en fe ld c a n g et a n a w ard , t h en m an y co m pan y i n sid ers w ill h av e n o p ro b le m g ett in g o n e," s a id S co tt K nott , a n a tto rn ey in W ash in gto n w ho s p ecia li z e s i n t a x w his tle b lo w er l a w su it s .

T he l a w d oesn 't p re clu de p ay in g m on ey t o c o n vic te d f e lo n s, a s l o n g a s t h ey d id n 't p la n o r i n it ia te t h e e v a sio n .

"T he I R S e n co u ra g es c o u ra g eo u s a ctio n s," s a id S en . C harle s G ra ss le y ( R ., I o w a), w ho sp on so re d t h e l a w . " A n a w ard o f $ 10 4 m illi o n i s o b vio u sly a g re a t d ea l o f m on ey, b u t billi o n s o f d olla rs i n t a xes o w ed w ill b e c o lle cte d t h at o th erw is e w ou ld n ot h av e b een p aid a s a r e su lt o f t h e w his tle b lo w er i n fo rm atio n ." M r. Bi rk en fe ld 's l a w yers a ck n ow le d ged t h eir c li e n t w asn 't a b ove r e p ro ach .

"A s Br ad h as s h ow n, e n co u ra g in g k n ow le d gea b le i n sid ers t o s tic k t h eir n eck s o u t i s o ft e n t h e o n ly w ay w e c a n e v er fi nd o u t a b ou t t a x c h ea tin g b y t h e f a t c a ts ," s a id h is la w yer, D ea n Z erb e, i n a n ew s c o n fe re n ce .

T he a w ard w as p aid o u t l a st w eek . M r. Z erb e s a id T uesd ay t h at c o rre ctio n s o ffi cia ls w ou ld n 't l e t M r. Bi rk en fe ld c o m men t. T he I R S d oesn 't a n nou n ce w his tle b lo w er a w ard s, b u t a n a g en cy s p okesm an c o n fi rm ed t h e p ay m en t, a d din g t h at M r. Bi rk en fe ld s ig n ed a d is c lo su re w aiv er.

R ELA TED R EA DIN G UBS W his tle b lo w er R ele a se d F ro m P ris o n 8 1 1 2 • W his tle b lo w er B ou ntie s P ose C halle n ges 12 1 3 1 0 • U BS W his tle -B lo w er R ues Hi s T ack , N ot Hi s T une 4 9 1 0 • E x-B an ke r t o C oop era te , P le a d G uilt y i n U BS P ro b e 53 0 0 8 • co m in g s o on . L iv e Q& A Jo in o u r u pco m in g L iv e Q &A , I n ve stin g i n U nce rt a in T im es, a n d s e e w hat e ls e i s c o m in g so on V IE W E V EN TS 6/11/2020 UBS Whistleblower Bradley Birkenfeld Gets $104 Million - WSJ https://www .wsj.com/articles/SB10000872396390444017504577645412614237708 4/6 Exp erts w ho t r a ck w his tle b lo w ers s a id M r. Bi rk en fe ld 's p ay m en t i s t h e l a rg est e v er.

T he a w ard c o u ld a ls o p ers u ad e o th er w his tle b lo w ers t o c o m e f o rw ard u n der a b ro ad er co rp ora te w his tle b lo w er r u le r e v is e d i n 2 0 09 a n d 2 0 10 . T here a lr e a d y h av e b een l a rg e p ay m en ts m ad e u n der t h at s ta tu te .

In 2 0 10 t h e U .S . g o vern m en t p aid $ 96 m illi o n t o C hery l E ck a rd , a f o rm er q u ali t y - a ss u ra n ce m an ag er a t G la xo S m it h K li n e PLC w ho h elp ed t h e g o vern m en t w in a g u ilt y p le a a n d a $ 75 0 m illi o n p ay m en t f r o m t h e d ru g c o m pan y t o s e tt le a n in vestig atio n o f m an ufa ctu rin g d efi cie n cie s.

T he g lo b al c ra ck d ow n o n t a x e v a sio n i s n 't y et o ver. E arli e r t h is y ea r, S w it z e rla n d's o ld est b an k, W eg eli n A G, c e a se d d oin g b u sin ess u n der t h at n am e a ft e r t h e U .S . i n dic te d th e b an k a n d s e v era l o f i t s e m plo yees.

In J u ly , G erm an a u th orit ie s r a id ed t h e h om es o f C re d it S u is s e G ro u p A G cli e n ts w ho w ere s u sp ecte d o f e v a d in g t a xes. T hat c a se c e n te rs o n a b ou t 5 ,0 00 c li e n ts w ho m ig h t hav e b ou gh t i n su ra n ce p oli c ie s a t a u n it o f t h e S w is s b an k a s a w ay t o e a rn t a x-f re e in te re st o n s a v in gs. T he i n qu ir ie s h av e s h aken u p t h e c lu bby w orld o f p riv a te b an kin g s o m uch t h at S w it z e rla n d, l o n g a b astio n f o r t h e r ic h , h as lo st s o m e o f i t s c a ch et. A lo is P ir k er, a r e se a rc h d ir e cto r a t Bo sto n c o n su lt in g fi rm A it e G ro u p, e stim ate s t h at S w is s p riv a te - b an kin g f e es h av e f a lle n a t l e a st 2 5% i n t h e p ast t w o y ea rs b eca u se f o re ig n c li e n ts n o lo n ger s e e a n a d va n ta g e t o s ta sh in g m on ey th ere .

G SK -5 .1 9 %▲ co m in g s o on . L iv e Q& A Jo in o u r u pco m in g L iv e Q &A , I n ve stin g i n U nce rt a in T im es, a n d s e e w hat e ls e i s c o m in g so on V IE W E V EN TS 6/11/2020 UBS Whistleblower Bradley Birkenfeld Gets $104 Million - WSJ https://www .wsj.com/articles/SB10000872396390444017504577645412614237708 5/6 "T he b u sin ess t h at r e m ain s t h ere i s u n der e x tr e m e f e e p re ss u re , a n d t h e d u st h asn 't s e tt le d y et," M r. P ir k er s a id . H e s a y s w ea lt h y A m eric a n s a re m ovin g f u n ds t o o th er t a x h av en s, s u ch a s t h e C ay m an I s la n ds, M on aco a n d s o m e A sia n c o u n tr ie s.

M r. Bi rk en fe ld , t h e s o n o f a n eu ro su rg eo n , g re w u p n ea r Bo sto n a n d g ra d u ate d f r o m N orw ic h U niv ers it y , a m ili t a ry s c h ool i n V erm on t, i n 1 9 88 . L ate r h e w ork ed f o r C re d it S u is s e a n d B arc la y s P LC i n G en ev a b efo re m ovin g t o U BS i n 2 0 01 a s o n e o f ab ou t 5 0 p riv a te b an kers a t t h e fi rm i n G en ev a .

P ro se cu to rs s a id M r. Bi rk en fe ld d esc rib ed h elp in g c li e n ts h id e w ea lt h b y p u rc h asin g art a n d j e w els f r o m f u n ds i n S w is s a cc o u n ts . H e s a id b an kers u se d e n cry p te d l a p to p s an d e ra se d r e fe re n ce s t o U .S . b an kin g c li e n ts i n c o m mun ic a tio n s. H e w as c o n vic te d o n t h e c o n sp ir a cy c h arg e in 2 0 08, a ft e r h e s ta rte d c o op era tin g w it h a u th orit ie s. P ro se cu to rs s a id h e w it h held i n fo rm atio n f r o m t h em c o n ce rn in g h is r e la tio n sh ip w it h a w ea lt h y C ali f o rn ia d ev elo p er w ho w as a U BS c u sto m er. M r. Bi rk en fe ld s e rv ed a b ou t 3 0 m on th s i n t h e S ch uylk ill C ou n ty F ed era l C orre ctio n al In stit u tio n i n P en nsy lv a n ia . I n A ugu st, h e w as r e le a se d t o a h alf w ay h ou se i n N ew H am psh ir e . H e w ill b e r e le a se d a t t h e e n d o f N ovem ber a n d p la ce d o n p ro b atio n .

M r. Z erb e s a id h is c li e n t h as a sk ed f o r a p re sid en tia l p ard on .

A t h is s e n te n cin g h ea rin g, J u stic e D ep artm en t o ffi cia l K ev in D ow nin g s a id , " W it h ou t M r. Bi rk en fe ld w alk in g i n to t h e d oor o f t h e J u stic e D ep artm en t i n t h e s u m mer o f 2 0 07, I d ou bt a s o f t o d ay t h at t h is m ass iv e f r a u d s c h em e w ou ld h av e b een d is c o vere d b y t h e U .S . g o vern m en t." B CS -9 .4 7%▲ M ORE Rea d B ir k e n ie ld 's d ete rm in atio n l e tte r • c o m in g s o on . L iv e Q& A Jo in o u r u pco m in g L iv e Q &A , I n ve stin g i n U nce rt a in T im es, a n d s e e w hat e ls e i s c o m in g so on V IE W E V EN TS 6/11/2020 UBS Whistleblower Bradley Birkenfeld Gets $104 Million - WSJ https://www .wsj.com/articles/SB10000872396390444017504577645412614237708 6/6 Mr. Z erb e s a id t h e $ 10 4 m illi o n a w ard i s 2 6% o f t h e $ 4 0 0 m illi o n i n t a x p aid b y U BS t o t h e I R S a s a r e su lt o f t h e 2 0 09 s e tt le m en t. T he l a rg e-a ward s p ro g ra m p ay s b etw een 1 5 % an d 3 0 % o f p ro ce ed s c o lle cte d , w hic h c a n b e h ard t o d ete rm in e.

A lt h ou gh M r. Z erb e s a id M r. Bi rk en fe ld p ro vid ed i n fo rm atio n t h at u lt im ate ly l e d t o $ 5 billi o n i n r e v en ue c o lle cte d b y t h e U .S ., n ot a ll o f t h at i s e li g ib le f o r w his tle b lo w er a w ard s. M r. Z erb e s a id h is c li e n t h as o th er r e la te d w his tle b lo w er c la im s o u ts ta n din g.

H e d ecli n ed t o s a y h ow m uch M r. Bi rk en fe ld 's a tto rn ey s w ou ld c o lle ct a s a f e e.

IR S w his tle b lo w er a w ard s a re f u lly t a xa b le .

W rit e to L au ra S au n ders a t la u ra .s a u n ders @ wsj.c o m a n d R ob in S id el a t ro b in .s id el@ wsj.c o m Copyrig h t © 2 0 20 D ow Jo n es & Com pan y, I n c. A ll R ig h ts R ese rv e d T his c o py i s f o r y o u r p ers o n al, n on -c o m merc ia l u se o n ly . T o o rd er p re se n ta tio n -r e a d y c o p ie s f o r d is trib u tio n t o y o u r c o lle a g u es, c lie n ts o r c u sto m ers v is it h tt p s:/ / w ww.d jr e p rin ts .c o m . co m in g s o on . L iv e Q& A Jo in o u r u pco m in g L iv e Q &A , I n ve stin g i n U nce rt a in T im es, a n d s e e w hat e ls e i s c o m in g so on V IE W E V EN TS