Former UBS employee testifies against firm

A former UBS AG banker testified against his old company yesterday, claiming that the financial services giant’s private-banking unit participated in schemes to help wealthy U.S clients hide $20 billion in assets and avoid income tax laws, according to published reports. UBS bankers aided wealthy American clients in creating fictitious trusts and corporations to conceal ownership of assets and helped them establish offshore accounts. They also advised clients to destroy financial records and helped investors file false tax returns, Bradley Birkenfeld said in testimony in U.S. District Court for the Southern District of Florida in Fort Lauderdale. Zurich, Switzerland-based UBS grossed about $200 billion from the tax shelter practices, according to the testimony from Mr. Birkenfeld, who worked at the firm from 2001 to 2006. He was indicted in April for his role in the tax abuse scheme, which was uncovered by the Internal Revenue Service, and decided to plead guilty to the charges and cooperate with the investigation(InvestmentNews May 30)