U.S. accountant granted $12M bail in UBS tax case

A wealthy accountant who is the first U.S. citizen charged in a wide-ranging tax probe of Swiss banking giant UBS AG was released from jail Wednesday on $12 million bail.
APR 08, 2009
A wealthy accountant who is the first U.S. citizen charged in a wide-ranging tax probe of Swiss banking giant UBS AG was released from jail Wednesday on $12 million bail. Federal prosecutor Jeffrey Neiman said the unusually large amount was necessary because of the high risk that Steven Michael Rubinstein might flee the country. Rubinstein, 55, is also a citizen of South Africa and owns a condominium in Israel besides his main home in Boca Raton. U.S. Magistrate Barry Seltzer also ordered Rubinstein to a dusk-to-dawn home curfew, wear an electronic monitoring ankle bracelet and travel only within South Florida. He agreed to surrender keys to a 45-foot boat docked outside his home and gave up his U.S. and South African passports. Rubinstein is scheduled to enter a plea April 22 to charges of filing a false 2007 tax return by failing to disclose income from his UBS accounts, which carries a maximum three-year prison sentence. The Internal Revenue Service claims Rubinstein failed to report UBS income on his returns from 2001 to 2007, but he is only charged so far for the 2007 return. Rubinstein's attorney, Robert Panoff, said his client sought credible professional advice for his financial affairs and that he isn't guilty of a crime. Rubinstein works for an international yacht business based on Coral Springs. "I think when more of the facts are seen, a different interpretation is there," Panoff said. Rubinstein's name was among the roughly 300 American account holders turned over to U.S. authorities by UBS in a deal that also required the Swiss bank to pay $780 million in fines and restitution. In a separate lawsuit filed in Miami, the IRS seeks the identities of another 52,000 UBS customers suspected of using bank secrecy to shield assets from U.S. taxes. UBS is contesting the lawsuit. Rubinstein is accused of creating a shell corporation in the British Virgin Islands in 2001 to conceal his ownership of the UBS account, which he then used to finance construction of a multimillion-dollar Florida home, deposit some $2 million in Krugerrand gold coins and make numerous investments. In all, prosecutors say he hid some $6 million with UBS. Handcuffed and wearing tan prison garb, the balding and bespectacled Rubinstein provided some details of his U.S. assets. They include the Boca Raton home worth up to $6 million; an $800,000 condo near Tel Aviv, Israel; two condos in Boca worth $1 million combined; numerous bank and brokerage accounts; a pair of Mercedes-Benz cars and a leased Lincoln Navigator. Rubinstein also said he and his wife of nine years have three small children. "Have you ever been arrested before?" Seltzer asked. "Never, your honor," Rubinstein said in a soft South African accent.

Latest News

More data isn’t the same as more clarity
More data isn’t the same as more clarity

Flyer on wealth management data aggregation, AI agents, and closing the insight-to-action gap.

Ex-JPMorgan banker refiles harassment claims in federal court
Ex-JPMorgan banker refiles harassment claims in federal court

Chirayu Rana has added two executives as defendants after dropping his state case against JPMorgan Chase last week.

Betterment lawsuit just scratches the surface on cash sweep conflicts, says Max CEO
Betterment lawsuit just scratches the surface on cash sweep conflicts, says Max CEO

A class action over the digital brokerage's cash sweep program only hints at an industry-wide reckoning over how client cash is handled, says Gary Zimmerman.

Pontera launches bulk rebalancing to ease advisors' 401(k) workload
Pontera launches bulk rebalancing to ease advisors' 401(k) workload

New tool lets advisory teams manage shared retirement-plan accounts en masse as Vanguard retirement plan data show rising exposures to equities across demographics.

Survey finds many Americans don’t know their own net worth
Survey finds many Americans don’t know their own net worth

Three in four Americans can’t estimate their net worth without checking an app or account, according to a new Western & Southern survey.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income