Two charged with concealing UBS investments
Thousands of dollars owed in taxes, US alleges
The US attorney in Boston has charged two Boston-area men with concealing their investments with Swiss banking giant UBS from the IRS.
Peter Schober, 51, of Boston, and Gregory Rudolph, 63, of Brookline, were each charged in separate criminal cases with willfully failing to comply with reporting requirements for foreign bank accounts.
According to the government’s charges, filed in federal court yesterday, Schober, with UBS’s help, in 2000 established Small Guard Foundation, a Panamanian corporation with no operations. In 2002, he opened a UBS account in the shell company’s name, and over the next five years hid more than $1 million in the account from the US government.
Rudolph, the government alleged in a separate court filing, put $1.5 million into an account in his own name with UBS. But to conceal income he might earn on his investments made with the money, UBS helped Rudolph create a shell firm called Lucky Overseas Ventures. He also created another shell company, registered in Hong Kong, the government alleged, and used the funds in both accounts for his own benefit and for his family.
Schober and Rudolph allegedly filed false tax returns in which they failed to report their interest from foreign bank accounts. Schober allegedly avoided $77,871 in taxes, and Rudolph avoided $25,507 in taxes. Schober said, “I take full responsibility for failing to inform the government of the existence of my Swiss bank account. I am fully committed to paying all penalties, interest and taxes,’’ according to his lawyer, Terry Philip Segal. Rudolph’s lawyer was not available.
If convicted, the men face up to five years in prison and fines of $250,000.
In 2009, UBS entered into an agreement with the United States in which the bank admitted to helping US taxpayers hide accounts from the IRS from at least 2000 to 2008, often in sham offshore companies. As part of the agreement, UBS provided the government with the identities of, and account information for, thousands of US customers.
Beth Healy can be reached at firstname.lastname@example.org.