Qui Tam

Whistleblower and former UBS Banker sentenced to 40 months in prison for role in tax scam

By Brian F. LaBovick

Former UBS Banker, Bradley C. Birkenfeld was recently sentenced to 3 years and 4 months in prison for assisting a client at UBS to evade taxes. However, due to Mr. Birkenfield's assistance, the government was successful in reaching the February settlement of UBS agreeing to pay $780 million in fines, penalties, and restitution relating to tax fraud.

In response to the sentencing of Bradley Birkenfeld, Qui tam Attorney Brian F. LaBovick, Esq. stateted the following:

"This is a major issue within the Qui Tam paradigm. I recognize that Mr. Birkenfeld was likely a bad actor and that the government had a good reason to hold him accountable for his part in the fraud. But in the context of how terrible whistleblowers are treated post service of process; this is another good reason why people "in the know" may fail to come forward to report fraud. Without bad actors looking for a "pay day" literally billions of dollars will be lost to the intricate fraudulent schemes created in the wake of big government contracts with dishonest vendors and service suppliers.

I am deeply troubled by this prosecution. Had this occurred in a criminal context, the results would have been different. Seldomly are we able to combat and bring down  organized crime rings without the help of the criminals who are given an immunity deal from the government."

The case, U.S. v. Birkenfeld, 08-cr-60099, U.S. District Court, Southern District of Florida, occured in Fort Lauderdale, Florida. Sadly enough, the support from U.S. Senator Carl Levin of Michigan, representatives of the Securities and Exchange Commission and IRS, did not help to give Mr. Birkenfeld leniency in his sentencing. One can only hope, that this will not deter other whistleblowers from coming forward and working with the government to report fraud against the government. 

Click on the following to learn more on the UBS Tax Fraud sentencing of Whistleblower Birkenfield or the DOJ's release on the former UBS Banker being sentenced to prison.

Full post as published by Whistleblower Law Blog on August 26, 2009 (boomark / email).