Renzo Gadola

Renzo Gadola is a Swiss banker and investment manager who was arrested for helping American citizens avoid paying taxes. After working at UBS from 1995 to 2008, Gadola founded RG Investment Partners (Zurich). Fingered by UBS whistleblower Brad Birkenfeld, federal authorities arrested Gadola in Florida in 2010.
Federal prosecutors alleged that Gadola, when he was employed by UBS, not only helped American taxpayers avoid paying taxes, but actively discouraged them from joining the Internal Revenue Service (IRS) program established to provide amnesty for American tax evaders who voluntarily disclosed their accounts. The program was set up in the wake of the 2008-09 UBS tax evasion scandal. The federal government also charged 36 of his clients with tax evasion.
Gadola cooperated with the U.S. government and turned in his American clients and two other Swiss bankers involved in abetting tax evasion by Americans. His case for the first time revealed how the major international Swiss banks used smaller, regional Swiss banks to hide the undeclared assets held in offshore accounts by their American clientele.
Arrest and Sentencing
Gadola was arrested in Miami, Florida on 07 November 2010. Federal agents recorded him discussing methods of evading taxes with a client. Prosecutors said he immediately began to cooperate with the government, and was instrumental in abetting the government in pursuing cases against his clients and two other Swiss bankers involved in helping Americans hide their assets from IRS scrutiny.
Gadola wore a wire that enabled federal agents to tape his clients who continued to maintain secret Swiss bank accounts with intent to defraud the United States. Information provided by Gadola led to the arrest of Swiss bankers Christos Bagios, a Greek national resident in Switzlerland who worked at both Credit Suisse Group AG and UBS, and Martin Lack, formerly of UBS.
On 22 December 2010, Gadola pleaded guilty to conspiracy to defraud the United States by enabling American citizens to evade taxes. Federal prosecutors recommended leniency due to his cooperation with the Department of Justice (DOJ) and the IRS, recommending a sentence of five months imprisonment and five months home confinement. In November 2011, Gadola was sentenced to five years probation and fined $100.
Christos Bagios
On 26 January 2011, Christos Bagios was arrested in New York. He had worked for UBS between 1992 and 2005 before going to work for Credit Suisse, which fired him after his arrest. The DOJ said his criminal activities occurred while he was in the employ of UBS.
The DOJ charged Bagios with engaging in a conspiracy with Gadola, Martin Lack and Hansruedi Schumacher (arrested in 2009) of abetting tax evasion by American citizens. He was accused of helping 150 of his American conceal up to $500 million in assets from the IRS while a UBS employee. On 06 November 2012, Bagios pleaded guilty to one count of conspiracy involving defrauding the federal government in excess of $1.08 million while an employee at UBS from 1993 to 2009. <ref name="Former Swiss banker admits" /> After UBS informed its American customers they had to terminate undeclared accounts in 2009, Bagios informed a client that he might be able to transfer undeclared assets to a smaller regional Swiss bank.<ref name="Bagios Pleads Guilt" />
As part of a plea bargain, the DOL recommended Bagios be sentenced to time served, which amounted to 37 days of imprisonment and approximately 19 months of house arrest. The DOJ wanted the sentence passed immediately to enable Bagios to be reunited with his family. The DOJ praised his cooperation and said his conduct was not as egregious as that practiced by others. U.S. District Judge Kenneth Marra approved the deal.<ref name="Former Swiss banker admits" /><ref name="Bagios Pleads Guilt" />

Main Menu

See Also

Main Menu