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The tax dispute case against Credit Suisse failed in court

United States

Credit Suisse sighs relief: US judges do not reopen tax dispute with Switzerland

Former Credit Suisse employees have accused a Swiss bank of still hiding illegal money from US citizens in a US federal court. The judge in charge now dismissed the whistleblower case.

Brady Dugan (right), then CEO of Credit Suisse, vowed to tell the truth about US black money accounts in Switzerland in February 2014 in front of a parliamentary committee in Washington, along with CS lawmaker Romeo Cerutti.

Michael Reynolds / EPA / EPA

A lesser problem for Credit Suisse. On Friday, a federal judge in Alexandria, Virginia, dismissed a whistleblower case. Plaintiffs in the service of the major Swiss bank allege that Credit Suisse did not tell the whole truth in resolving the tax dispute with the United States. Bankers have accused then-CS leader Brady Duggan of lying to senators during a February 2014 parliamentary hearing in Washington.

With their lawsuit filed under special U.S. law, the whistleblowers wanted to impose higher fines on Credit Suisse. Seven years ago after the CS had already paid $ 2.6 billion to the U.S. Treasury – they demanded at least $ 4 billion. If the case is won, the whistleblower could be fined up to 30 percent of the fine.

Richter accepted the Biden government’s request

In his decision to dismiss the case on formal legal grounds, Federal Judge Claude Hilton pursued the application of Justice President Joe Biden. It described Whistleblower’s intervention as an attempt to interfere with a practice that was not yet complete, contrary to claims by former CS staff. A representative of the Ministry of Justice therefore wrote in a court submission that the case would interfere with the “ongoing” investigation. The focus of this practice is to identify the “remaining” Swiss accounts of American citizens.

Credit Suisse did not want to comment on Judge Hilton’s decision on Monday. Defendants’ attorney Jeffrey Neyman said in a statement that his clients would not rest until Credit Suisse was held accountable. Neyman confirmed in a Bloomberg news agency report that Whistleblowers wanted to take Judge Hilton’s decision to the next level.

Around your little finger?

Dan Horsky is at the center of the allegations of former CS bankers. With the help of Credit Suisse, the retired economics professor from Rochester (New York) hid about $ 200 million from US tax authorities. Horsky was exposed in the summer of 2014, claiming that CS had settled a settlement with the Department of Justice and concluded a contract for tax evaders for Atlantic debt.

Whistleblowers say Credit Suisse still deceives US officials today. The Ministry of Justice also alleges that the big bank twisted its little finger seven years ago. However, the Whistleblowers did not provide any evidence to support these claims in their written applications.