The Whistleblower, Tax Cheats, and the U.S. Department of Justice

Here you will find the all the exciting details of how to do business in America. This isn’t boring theory or textbook learning. All of the examples are from current, real-world events. Learn from the greatest American business institutions and people how to operate in the U.S.

Don’t be a whistleblower. You will go to jail and pay hefty fines. The people you testify against will get little if any punishment.

A whistleblower is a person, usually within an organization, who testifies about the wrongdoing that organization is perpetrating. The whistleblower is many times the only person able to provide evidence of wrongdoing.

Here is a real world example. Bradley Birkenfeld, a UBS AG private banker, was sent to jail for 40 months on January 8, 2010. Mr. Birkenfeld was the only person who could provide evidence of wrongdoing at UBS AG. Prosecutors stated that without Mr. Birkenfeld they did not have a case. What was Mr. Birkenfeld’s reward for exposing flagrant fraud and tax evasion? Forty months in jail. The U.S. Justice Department has ensured that whistleblowers will not expose bank fraud in the future.

What was the result of Mr. Birkenfeld’s testimony? UBS AG agreed to pay $780 million in February 2009 because they were helping U.S. citizens evade taxes. UBS AG also agreed to turn over the names of 4,450 account holders with secret accounts. But wait there’s more. The Swiss government may not allow the names to be turned over to U.S. authorities as reported on January 23, 2010.

So UBS AG can still operate in the U.S. Secret account holders who are evading taxes have received little punishment. The person key to exposing this fraud is jailed.

What does this mean to you? Never be a whistleblower. Know that if you are wealthy you can evade U.S. taxes by setting up a secret account in Switzerland. Please note that the U.S. provided amnesty to any secret account holder that came forward.

What if you aren’t wealthy? You are screwed. You will pay all of your taxes or you will be jailed and fined. As Leona Helmsley, deceased president of Helmsley Hotels and one of the world’s richest people, stated “only little people pay taxes.” If you are not wealthy you are a little person.

Is anyone in the U.S. concerned and/or angry about this tax fraud? No. The U.S. government understands that the banks and the wealthy must be protected and exonerated. The U.S. government understands that whistleblowers must me punished.

The Swiss ruling on whether to turn over the names of U.S. tax cheats will be made on January 27, 2010. Do you think the Swiss will allow the names of wealthy U.S. tax cheats to be turned over?