IRS Whistleblower Office Faces Test With Trump Administration

Whistle-blower advocates are skeptical that the Trump administration will overhaul the IRS office charged with exposing tax fraud and evasion, despite new legislative action pushing broader reforms.

Although the IRS Whistleblower Office handed out $61 million in awards during fiscal year 2016 to whistle-blowers who helped the government halt tax-evasion schemes, critics told Bloomberg BNA that the office isn’t doing enough to ease taxpayers’ minds when they come forward with information. 

Credit Suisse Probe Puts Swiss Officials on Back Foot Again

The latest probe into Credit Suisse Group AG is a blow, not just for the firm but also for the Swiss attorney general, who didn’t know some of the bank’s offices were going to be raided. This week, Swiss authorities are back in damage-control mode, after almost a decade of financial scandals spanning Bradley Birkenfeld’s whistleblowing to the Panama Papers.

While Australian tax authorities have suggested that some of the Credit Suisse accounts being investigated are more recent, Mark Branson, chief executive officer of Swiss financial watchdog Finma, said it was too early to tell.

“Wealth managers in Switzerland may need more time to deal with the past,” Branson told reporters in the Swiss capital Bern on Tuesday. “These headlines will not vanish overnight, although the business model has fundamentally changed.” read more »

The UBS Whistleblower Who Won’t Back Down

Bradley Birkenfeld, the former UBS banker turned well-known whistleblower, isn’t afraid of causing a stir.

He is known for blowing open a massive tax evasion scheme at UBS Group AG in 2007, which led to a $780 million fine, a cascade of tax treaties and information about previously secretive banking practices, and reforms in the industry. But despite earning an eye-popping reward, Birkenfeld spent nearly three years in prison for his role—and says a massive overhaul of the government’s whistle-blower program is needed to protect others who decide to come forward. read more »

Kara Novaco Brockmeyer, Chief of FCPA Unit, to Leave SEC After 17 Years of Service

The Securities and Exchange Commission today announced that Kara Novaco Brockmeyer, Chief of the Enforcement Division’s Foreign Corrupt Practices Act (FCPA) Unit, is planning to leave the agency later this month.

Since 2011, Ms. Brockmeyer has led a national unit of 38 attorneys, accountants, and other specialists focusing on violations of the anti-bribery and accounting provisions of the federal securities laws.  In addition, Ms. Brockmeyer has played a leading role in SEC programs, having founded and served as the co-head of the Enforcement Division’s Cross Border Working Group, a proactive risk-based initiative focusing on U.S. companies with substantial foreign operations, and serving as a member of the Enforcement Division’s Cooperation Committee and the Enforcement Advisory Committee. read more » 

Woman pleads guilty in connection to $70 million Ponzi scheme in Dayton area

A 51-year-old woman formerly of Springboro pleaded guilty to charges related to a $70 million Ponzi Scheme April 4.

Connie Apostelos, also known as Connie Coleman, pleaded guilty to one count of money laundering in connection with the scheme that reportedly defrauded nearly 500 victims.

Court documents show that beginning in 2009 and continuing for at least 5 years, Apostelos and her husband William Apostelos worked with others to orchestrate a Ponzi scheme in the Dayton area were about 480 investors lost a total of more than $20 million. They reportedly received $70 million total in investments funds.

Rather than investing the money, the couple reportedly used it to pay for personal luxuries. The government seized two racehorses, vehicles, jewelry, artwork and cash totally about $650,000, according to a media release.