The oldest bank of Switzerland, Wegelin & Co became first foreign bank that pleaded guilty in the United States for the case of tax evasion. The bank admitted on 3 January 2013 that it assisted various American clients to conceal over 1.2 billion dollar from Internal Revenue Service (IRS).
Wegelin & Co which laid its foundation in 1741 entered its statement in federal court of Manhattan and agreed to pay a sum of 20 million dollar as a repayment to the IRS, 22 million dollar fine, apart from additional 15.8 million dollar which represented the gross fees that the bank earned on undeclared accounts of the US taxpayers between the time duration of 2002 to 2011.
US authorities declared that the overall money along with the April forfeiture of over 16.2 million dollar by bank indicated towards the fact that there was an overall recovery of around 74 million dollar by the US. The bank was blamed for assisting around 100 US clients in hiding huge amount of money in the overseas accounts from federal tax collection agency.
US Attorney Preet Bharara believed that the bank had become a secure place for those US taxpayers who wanted to cheat on the taxes through their undisclosed off-shore accounts.