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The Greatest Depression | 02/23/2009 7:50 am

UBS Used PGA, Cultural Events to Woo U.S. Tax Cheats

To drum up business, Swiss bankers made thousands of trips to the States every year, courting prospects at UBS-sponsored cultural and sporting events
By The Staff at wowOwow.com

Not ready to cheat on your taxes? Would a night at the symphony change your mind? How about VIP access to the PGA or America’s Cup?

Those are the kinds of goodies UBS doled out to coax wealthy Americans into hiding billions of dollars from the IRS in secret offshore accounts, court and other federal documents show.  

The UBS logo has long graced such premiere events as the Players Championship and the America’s Cup Race. Good corporate citizenship and savvy marketing — or something more sinister?

Last week, the Swiss banking giant agreed to pay $780 million in fines and turn over the names of 250 U.S. clients. Investigators are now seeking the names of 50,000 more.   

Getting all those millionaires on board wasn’t easy. According to the SEC, dozens of UBS "advisers" made over 3,500 trips a year to the U.S. to promote the scheme. A mix of business and pleasure, the trips lasted several weeks at a time. Prospects were often wooed with special access to UBS-sponsored parties and events across the country. These included high-end art shows, classical music concerts, professional tennis and golf tournaments and yacht races, federal investigators say.

With the ink still wet on their tax evasion indictments, many of these clients are now reportedly contacting the IRS before their names are made public. But whether you’re into music, art or sports, chances are you’ve bumped into a few of these million-dollar tax cheats at these and other UBS-sponsored events over the years:

The art of the deal — Art Basel Miami Beach
One giant wine and cheeser, Art Basel Miami Beach attracts more than 200 galleries and 2,000 artists from around the globe every year. UBS has been a key sponsor since 2002, about the time it’s U.S. tax shelter scheme went into full gear.

Eye on the green — The Players Championship
A partnership with this PGA tournament in Ponte Vedra Beach, FL, allows UBS to offer its VIP guests a hospitality suite with views of the 17th green. Like it’s own offshore accounts, UBS describes the course as an "oasis-in-hiding."

Financial instruments — The Ravinia Festival
Set in Chicago from June - September, this classical music fest includes over 120 shows by the likes of Yo-Yo Ma, Joshua Bell and other superstars. A partner since 2002, UBS is also an exclusive sponsor of the Boston Symphony Orchestra, the Los Angeles Philharmonic and the Philadelphia Orchestra, among others.

All aboard —  America’s Cup
USB was the first main sponsor of Team Alinghi, the winning yacht at the 32nd America’s Cup in 2007. The bank says the partnership has "proven to be a parallel to how UBS approaches relationships with its clients." The most recent missive? Abandon ship!

8 Reader Comments (so far…) Sign In or Register to comment

Patty E

 

Apparently, UBS and those other 60 tax havens, do not think this spotlight on their activiites is going to amount to much……in my email today was the following—- 

 

Tuesday, February 24, 2009: Issue # 942              

Smart Ways to Keep Your Money Safe
by Alexander Green, Oxford Club Investment Director

In this issue:

  • How to legally invest outside the United States
  • Seven reasons to invest offshore
  • Getting the facts about worldwide tax havens



Would you spend $15.00 to make $348.34?

Sounds like a silly question I know. But that’s exactly what this exciting new strategy is capable of producing…each and every month. Forget about everything you think you knew about the markets. Discover how one trade a month could add thousands of dollars to your portfolio…over and over again. . 

According to the World Bank, more than half of the world’s personal wealth - over $50 trillion - is stashed in about 60 or so asset and tax havens worldwide. 

More than a third of it is in Switzerland, comfortably secure in that nation’s bank vaults.  The rest is stashed away in Hong Kong, the Cayman Islands, Panama, Bermuda, the Isle of Man and other protected havens.

What do all these rich people know that you don’t?

By Patty E on 02/24/2009 10:25 am
Ms. Dee
Here we go!  Let’s hear it for the new FBI.
By Ms. Dee on 02/24/2009 10:35 am
Chris Glass`

I am not for making a law out of everything that happens but there should be public disclosure for any foreign bank connection. Not just with civic groups but across the board for business and individuals.

One of the many reasons our ecomony is in trouble is that those who can well afford to pay taxes find creative ways to get around them. There will always be people and orgaizations in other countries wanting to use their money to help them do just that.

By Chris Glass` on 02/25/2009 10:11 am
billy killoran
i wonder what the breakdown of Republicans and Democrats is for hidden&sheltered $$$ ????
By billy killoran on 02/26/2009 1:07 pm
C jay

At last - once the US brings in the taxes owned by "off-shore Americans," and these funds, we will not have to even consider how to fund healthcare for all!!!!! It is that simple.

Corruption and fraud has not only been tolerated, but promoted from within and without the USA, for greed, and to keep the now vacuous middle class, and poor out of the picture - do we really need to eat cake!

 

By C jay on 03/03/2009 4:41 am
C jay
PS: check out the US Olympic Committee
By C jay on 03/03/2009 4:41 am