A Fifth UBS Client Pleads Guilty in Tax Case

Enter the dates in mm/dd/yyyy format.
By CARRICK MOLLENKAMP and LAURA SAUNDERS

A New Jersey businessman became the fifth UBS AG client since April to agree to plead guilty to concealing money from U.S. tax and finance authorities by using offshore accounts and companies.

In a federal court appearance Friday, Juergen Homann admitted to concealing more than $5 million in accounts at Swiss banks, including UBS. The Saddle River, N.J., man, who will be sentenced in January, faces a maximum sentence of five years in prison.


In addition to a maximum fine of $250,000, Mr. Homann agreed to pay a civil penalty of 50% of the highest balance in the account, which comes to about $3 million. The penalty is for failing to file a Foreign Bank Account Report form notifying the IRS of the account's existence. U.S. taxpayers with offshore accounts are required to file the form every year.

Neither Mr. Homann nor his lawyer were available for comment.

The plea agreement stated that "Juergen Homann has clearly demonstrated a recognition and affirmative acceptance of personal responsibility for the offense charged."

The efforts Mr. Homann undertook to conceal assets mirror those of other UBS clients who have agreed to plead guilty in the U.S. investigation of accounts held at Swiss banks. So far, two businessmen from Florida, one from New York, and one from California have agreed to plead guilty.

Hong Kong has featured as a key link to the UBS investigation. At least three UBS clients, including Mr. Homann, used enterprises set up in Hong Kong as conduits for assets or loans.

Another link to other cases: Mr. Homann was advised by Matthias Rickenbach, a Swiss lawyer who also advised businessmen who have agreed to plead guilty in the UBS inquiry. Last month, Mr. Rickenbach was indicted for conspiring to defraud the U.S.

According to a Justice Department statement Friday, Mr. Rickenbach and an unnamed Swiss banker helped Mr. Homann with the use of two Hong Kong enterprises that were featured in the scheme. Mr. Homann, for example, held millions of dollars in a Hong Kong entity called ELM Finance Ltd. that had a UBS account. In 2005, Mr. Homann moved $5 million from the ELM account to a second Hong Kong entity. The goal, the Justice Department said, was to obtain financing for Mr. Homann's U.S. business without tipping off U.S. authorities to the assets held in the ELM account.

Posted in: Business-Economic,World News