Monday, June 2, 2014

No. 51: Swisspartners Companies' Non-Prosecution Agreement with the U.S. Government

On May 8, 2014, four Swisspartners companies entered into a non-prosecution agreement (NPA) with the U.S. Attorney for the Southern District of New York (U.S. Attorney). The NPA was approved by the Tax Division of the U.S. Department of Justice. The Swisspartners companies agreed to pay $4.4 million to the U.S. The U.S. Attorney agreed not to criminally prosecute the companies for participation in a conspiracy to defraud the Internal Revenue Service (IRS) from about 2001 through about 2011. The NPA was based on "voluntary self-reporting, extraordinary cooperation, and voluntary implementation of remedial measures." The only four entities to which the NPA applied were:
  • Swisspartners Investment Network AG, a Swiss-based asset management firm, and three subsidiaries.
  • Swisspartners Wealth Management AG, a Zurich-based trust services provider that established, organized, and managed entities, such as foundations and trusts, on behalf of, among others, U.S. taxpayer-clients.
  • Swisspartners Insurance Company SPC Ltd., a Cayman Islands-based life insurance carrier that offered life insurance and annuity products to, among others, U.S. taxpayer-clients.
  • Swisspartners Versicherung AG, a Liechtenstein-based insurance carrier that offered a variety of insurance and annuity products to, among others, U.S. taxpayer-clients.
On May 9, the U.S. Attorney filed a forfeiture complaint for $3.5 million of fees received by the Swisspartners companies. The other $900,000 paid to the U.S. was restitution to the IRS. The NPA was attached to the complaint as an exhibit. The complaint referred to "insurance policies," and the NPA referred to "life insurance and annuity products." However, neither document indicated the types of life insurance policies and annuity contracts used in the schemes. (U.S.A. v. $3,500,000 in U.S. Currency, U.S. District Court, Southern District of New York, Case No. 14-cv-3385.)

I am offering a complimentary 24-page PDF consisting of the complaint and the NPA. Send an e-mail to and ask for the Swisspartners package.