The Internal Revenue Service headquarters building in Washington, DC.
Chip Somodevilla | Getty Images News | Getty Images
WASHINGTON — A former Swiss finance executive pled guilty in New York federal court on Thursday to conspiring to defraud the United States in a tax evasion scheme known as the “Singapore Solution” that hid $60 million in income and assets held by wealthy Americans, prosecutors said.
Rolf Schnellmann, 61, former head of Zurich-based Allied Finance Trust AG, helped defraud the Internal Revenue Service by stashing money of U.S. taxpayer clients in undeclared accounts at a private Swiss bank, Privatbank IHAG Zurich AG, between 2008 and 2014, according to the Manhattan U.S. Attorney’s Office.
In the “Singapore Solution,” Schnellmann and colleagues conspired to transfer more than $60 million from the undeclared accounts across several countries and Hong Kong, and back to the private bank in newly opened accounts under a Singapore-based asset-management firm established by a co-conspirator.
Schnellmann and the co-conspirators were paid large fees to assist the tax evasion scheme, prosecutors said.
He was arrested in August in Italy, and extradited to the United States.
Schnell faces a maximum possible sentence of five years in prison when he is sentenced on July 19.