Legal
Ex-UBS Client Jailed, Fined For Tax Evasion By NY Court

A former client of UBS, Federico Hernandez, who pleaded guilty to hiding Swiss accounts once valued at $8.8 million from US tax authorities, has been jailed for a year and a subsequent six months of home confinement, media reports said.
Hernandez, a financial advisor, pleaded guilty on 15 April as part of a US crackdown on tax evasion by clients of foreign banks. His term was the longest yet for a former UBS client after nine others got sentences ranging from probation to 10 months.
US District Judge Denny Chin imposed a fine of $4,000 and ordered Hernandez to pay restitution of $84,423 to the Internal Revenue Service, which his lawyer said he already paid after filing amended tax returns. Hernandez also has agreed to a penalty of $4.4 million, or half of the amount of the highest value of his Swiss accounts.
Hernandez also pleaded guilty on 1 June to state tax charges. He was fined $25,000 and given a conditional discharge that allowed him to avoid prison.
The case is part of a wider move by the US legal and tax authorities to crack down on alleged tax evaders; the effort has already seen the US authorities achieve a partial breach of historic Swiss bank secrecy laws. Last August, the Swiss and US governments reached an agreement under which UBS will hand over up to 4,450 client account details to the US. In February last year, UBS paid a $780 million fine to settle criminal charges that it helped US citizens evade tax.