Credit Suisse can breathe a sigh of relief: US judges are not reopening the tax dispute with Switzerland
Former Credit Suisse employees have alleged in US federal court that the Swiss bank is still hiding illegal money from US citizens. The judge in charge now dismissed the whistleblower’s suit.
One less problem for Credit Suisse. On Friday, a federal judge in Alexandria, Virginia, dismissed a whistleblower’s lawsuit. The plaintiffs, who were in the service of the main Swiss bank, claimed that Credit Suisse did not tell the whole truth in settling the tax dispute with America. Bankers accused then-CS President Brady Duggan of lying to senators present during a parliamentary hearing in Washington in February 2014.
With the lawsuit being brought under a special US legal lane, the whistleblower wanted to roar at Credit Suisse for a higher fine. They demanded at least $4 billion to be paid – after CS had already handed over $2.6 billion to the US Treasury seven years ago. If the lawsuit had been successful, the whistleblower would have counted on a reward of up to 30 percent of the fine.
Richter accepted the Biden government’s request
In his decision to dismiss the lawsuit on formal legal grounds, Federal Judge Claude Hilton followed President Joe Biden’s request by the Department of Justice. This whistleblower’s intervention was described as an attempt to interfere with a procedure that had not yet been completed, contrary to claims by former CS employees. The lawsuit would therefore interfere with an “ongoing” investigation, the Justice Ministry representative wrote in a court note. This action focuses on identifying the “residual” Swiss accounts of US citizens.
Credit Suisse did not want to comment on Judge Hilton’s decision on Monday. Jeffrey Neiman, the plaintiffs’ attorney, said in a statement that his clients will not rest until Credit Suisse is held accountable. Neiman confirmed in a report to Bloomberg News that the whistleblower wants to take Judge Hilton’s decision to the next level.
wrapped around your little finger?
Dan Horsky is the focus of the allegations of former CS bankers. With the help of Credit Suisse, a retired economics professor from Rochester (New York) hid about $200 million from the US tax authorities. Horsky was exposed in the summer of 2014 after CS settled a settlement with the Department of Justice and claimed it had ended a transatlantic tax evader deal.
Whistleblowers claim that Credit Suisse continues to deceive US authorities today. They also accuse the Justice Department of forcing the big bank to wrap it around its little finger seven years ago. However, the whistleblower did not provide any evidence to support these claims in their written submissions.
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