US indicts Swiss bank exec in tax investigation

Nov 12, 2008, 19:21 GMT

Washington - The US government has indicted a Swiss bank executive for helping thousands of wealthy Americans avoid paying taxes on billions of dollars of income, the US Justice Department said Wednesday.

Raoul Weil, 48, helped about 20,000 American clients conceal 20 billion dollars in assets from US tax authorities from 2002 to 2007, the Justice Department said.

Weil was heading the Zurich-based UBS bank's global wealth management firm during that time and serves on the company's executive board, according to the UBS website.

'Weil, who allegedly referred to this business as 'toxic waste,' mandated that Swiss bankers grow the cross-border business, despite knowing that this would cause bankers to violate US law,' the Justice Department said.

Weil was indicted by a grand jury in Miami and faces a maximum prison sentence of five years if convicted.

During his time as head of Wealth Management International, Weil helped UBS rake in more than 200 billion dollars in foreign banking, the Justice Department said.

'Professionals, including bankers, who promote fraudulent offshore tax schemes against the United States, will be held accountable,' John A Marrella, deputy assistant attorney general at the Justice Department's Tax Division, said.