Economy
Swiss Bank Admits to $5.6 Billion Tax Evasion Scheme, Settles for $120 Million
Banque Pictet, the private banking arm of the Pictet Group based in Switzerland, has admitted to conspiring with U.S. taxpayers to hide billions of dollars from the Internal Revenue Service (IRS) in over 1,600 secret bank accounts. The Justice Department revealed on Monday that Banque Pictet has agreed to pay over $120 million in restitution to the U.S. Treasury as part of a settlement.
The bank’s involvement in the tax evasion scheme spanned from 2008 through 2014, during which it conspired with American taxpayer clients to conceal more than $5.6 billion of the approximately $20 billion in U.S. assets. This led to an evasion of around $50.6 million in U.S. taxes, according to prosecutors.
Of the $5.6 billion concealed, the funds were distributed across 1,637 accounts, implicating more than 40% of the total 3,736 private accounts owned by U.S. taxpayers held by the bank. Banque Pictet reportedly assisted its American clients in hiding their undeclared accounts through various means, including the formation and administration of offshore entities. Undeclared accounts were then maintained in the names of these entities on behalf of U.S. taxpayer clients.
Jim Lee, Chief of IRS Criminal Investigation, emphasized the importance of the case in sending a strong message to those attempting to hide assets and income offshore. Lee stated, “This case should provide a clear message to others who try to hide their assets and income offshore. Offshore tax evasion is a priority for IRS Criminal Investigation.”
The settlement underscores the ongoing efforts by U.S. authorities to combat tax evasion and sends a clear warning to financial institutions and individuals involved in such illicit activities. As regulatory scrutiny intensifies globally, financial institutions face increasing pressure to ensure compliance with international tax laws and prevent their involvement in tax evasion schemes.
Economy
FEMA Supervisor Claims Avoidance of Trump Supporters Was Not an Isolated Incident
Marn’i Washington, the former Federal Emergency Management Administration (FEMA) supervisor fired for instructing workers to avoid homes displaying Trump campaign signs, stated on Tuesday that the incident was part of a larger pattern of political bias within the agency. Washington, who previously served as a Disaster Survivor Assistance crew leader in Highland County, Florida, called the occurrence a “colossal event” that extended beyond Florida, affecting other states like North and South Carolina after hurricanes devastated the region.
According to the Daily Caller News Foundation, Washington’s comments came in an interview with journalist Roland Martin, where she described the practice as part of a broader trend within FEMA, alleging that it had occurred in multiple states, particularly in areas that had supported President Donald Trump. “If you look at the record, there is what we call a community trend,” Washington said, suggesting that FEMA’s actions weren’t isolated. “FEMA always preaches avoidance first and then deescalation. This is not isolated. This is a colossal event of avoidance not just in the state of Florida, but you will find avoidance in the Carolinas.”
Washington’s remarks stem from an incident in which her team, while canvassing for hurricane relief in Lake Placid, Florida, was instructed to avoid homes with Trump signage. According to reports, the move resulted in at least 20 homes with Trump-related signs or flags being skipped over for disaster relief assistance between late October and November. These actions were allegedly in line with a set of “best practices” that included safety tips alongside the politically charged directive to avoid Trump supporters.
Washington clarified that the guidance came from higher-ups in FEMA, including Chad Hershey, her supervisor, who reportedly instructed staff to bypass homes they deemed unsafe due to hostile encounters with residents. “We will canvass at [homes] that do not have the community trend with the Trump campaign signage,” Washington explained. “If any of those residents come outside and say ‘hey, I want to register,’ we’ll welcome them into our arms… But we were not going to subject our people to continue with verbal abuse or hostile encounters.”
The former supervisor emphasized that her team experienced verbal abuse from residents who displayed Trump campaign signs on their properties, leading to her instruction to avoid those homes entirely. Washington also mentioned that her team was instructed to log reasons for skipping homes, with notes like “Trump sign no entry per leadership,” “Trump sign, no stop Trump flag,” and “Trump sign, no contact per leadership” appearing in the records. These notes were reportedly made in Highlands County, a region where nearly 70% of residents voted for Trump.
The controversial directive came in the wake of Hurricanes Helene and Milton, which struck the area in October, leaving millions without power and causing approximately $50 billion in economic damage, as reported by President Joe Biden. FEMA has not denied the incident but has indicated it is taking steps to address the matter. Hershey confirmed to the Daily Wire that the agency was “aware” of the incident and is taking “immediate action.”
Washington’s firing has drawn attention to possible partisan practices within federal agencies. While she defended her actions as being in response to a difficult environment, she also criticized FEMA’s leadership for allegedly not addressing the broader issue of political bias within the agency. Washington’s claims have sparked broader questions about the extent of political influence in government disaster relief efforts and whether such biases might impact the fairness of assistance distribution in future emergencies.
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