It was the US District Judge Laura Taylor Swain who had entered into a default judgment against Wegelin, allowing the government to take the money in Wegelin’s correspondent account in the US, held at UBS AG in Stamford, Connecticut.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
According to a press release issued by Preet Bharara, US Attorney for the Southern District of New York, Wegelin & Co. had been indicted in February 2012 "for conspiring with US taxpayers and others to hide more than US$1.2 billion in secret accounts and the income they generated from the IRS."
Moreover, more than US$16 million was also known to be kept at UBS AG of Stamford. Prosecutors had called Wegelin a "fugitive" after the bank declined to send a lawyer or other representative to a court hearing in the case.
Prosecutors claimed that Wegelin and at least two other Swiss banks used the UBS account to launder money deposited by US taxpayers to help them avoid detection by the government.
A spokeswoman for Wegelin, Albena Bjorck, didn’t respond to an e-mail seeking comment after regular business hours in Switzerland.
The indictment is part of a crackdown on alleged tax fraud, including efforts to pierce the tradition of Swiss bank secrecy.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataMeanwhile, Bharara added that the forfeited funds will be deposited with the US Treasury.
