Business Crimes Hotline

Credit Suisse AG Agrees to $2.6 Billion Resolution of Offshore Tax Conspiracy Charges

Following its earlier guilty plea on May 19, 2014 ' for conspiracy to aid and assist U.S. taxpayers in filing false income tax returns (and other documents) with the Internal Revenue Service (IRS) ' Swiss corporation Credit Suisse AG (Credit Suisse) was sentenced on Nov. 21 in the United States District Court for the Eastern District of Virginia by the Court's Chief Judge, Rebecca Beach Smith. The plea agreement is the principal component of a larger, multi-billion dollar settlement with several state and federal agencies that breaks down as follows: a $1.136 billion criminal fine (to be paid to the DOJ's Crime Victims Fund); a $715 million payment to the New York Department of Financial Services; $666.5 million in restitution to the IRS; approximately $196 million in civil penalties, disgorgement, and interest to the Securities and Exchange Commission (SEC); and a $100 million payment to the Federal Reserve. In addition to the financial components of the plea agreement, Credit Suisse also received cease and desist orders from the Federal Reserve and State of New York that require the company to conduct several remedial steps. Finally, as part of its Nov. 21 plea, Credit Suisse also made future commitments to: 1) share information with authorities relating to account information (including information on other financial institutions that transacted with the hidden offshore accounts); 2) close non-compliant accounts; and 3) develop and apply compliance policies for related U.S. laws, such as the Foreign Account Tax Compliance Act.