UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF NEW YORK

- - - - - - - - - - - - - - - - x
UNITED STATES OF AMERICA
- v. -
INDICTMENT
11 Cr.
DANIELA CASADEI and
FABIO FRAZZETTO,
11 CR
Defendants.
x
COUNT ONE
(Conspiracy)
The Grand Jury charges:
The Defendants and Their Bank
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1. At all times relevant to this Indictment, Swiss
Bank No. 1 provided private banking, asset management, and ,other;.
services to individuals and entities around the world, including
U.S. taxpayers in the Southern District of New York. Until in or
about 2008, Swiss Bank No. 1 maintained an office ~ n the Southern
District of New York.
2. From at least in or about the early 1990s, up
through at least in or about 2010, DANIELA CASADEI, the
defendant, worked at Swiss Bank No. 1 as a client advisor to
various individuals, including U.S. taxpayers who maintained
accounts at Swiss Bank NO.1.
3. From at least in or about 2005, up through at
least in or about 2010, FABIO FRAZZETTO, the defendant, worked at
1
Swiss Bank No. 1 as a client advisor to various individuals
r
including U.S. taxpayers who maintained accounts at Swiss Bank
NO.1.
Obligations of U.S. Taxpayers
With Respect to Foreign Financial Accounts
4. At all times relevant to this Indictment
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citizens and residents of the United States who had income in any
one calendar year in excess of a threshold amount ("U.S.
taxpayersll) were required to file a U.S. Individual Income Tax
Return
r
Form 1040 ("Form 1040
1l
)r for that calendar year with the
Internal Revenue Service ("IRSII). On Form 1040
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U.S. taxpayers
were obligated to report their worldwide income
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including income
earned in foreign bank accounts. In addition
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when a U.S.
taxpayer completed Schedule B of Form 1040
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he or she was
required to indicate whether "at any time during [the relevant
calendar year] II the filer had "an interest in or a
other authority over a financial account in a foreign countrYr
such as a bank account
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securities account, or other financial
account
r
ll
and if SOr the U.S. taxpayer was required to name the
country.
5. In addition
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U.S. taxpayers who had a financial
interest inr or signature or other authority over a foreign bank
account with an aggregate value of more than $10
r
OOO at any time
during a particular calendar year were required to file with the
IRS a Report of Foreign Bank and Financial Accounts
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Form TD F
2
90-22.1 ("FBAR") on or before June 30 of the following year. In
general, the FBAR required that the U.S. taxpayer filing the.form
identify the financial institution with which the financial
account was held, the type of account (either bank, securities,
or other), the account number, and the maximum value of the
account during the calendar year for which the FBAR was being
filed.
Overview of the Conspiracy
6. From at least in or about the 1990s up through and
including in or about 2010, more than 180 U.S. taxpayer-clients
of Swiss Bank No. 1 conspired with, at various times, DANIELA
CASADEI and FABIO FRAZZETTO, the defendants, and others known and
unknown, including other client advisors at Swiss Bank No.1, to
defraud the United States, to conceal from the IRS on false tax
returns and otherwise the existence of bank accounts maintained
at Swiss Bank No.1, and. the income earned in these accounts'
(hereafter "the undeclared accounts"), and to evade U.S. taxes on
income generated in those accounts. CASADEI, FRAZZETTO and other
client advisors at Swiss .Bank No. 1 conspired with U.S. taxpayer-
clients to hide at least $600,000,000 in assets from the IRS at
Swiss Bank No.1, and CASADEI and FRAZZETTO managed undeclared
U.S. taxpayer assets worth at least $13,200,000 and $20,500,000
respectively. In furtherance of the conspiracy, CASADEI and
FRAZZETTO, among other things, advised and helped U.S. taxpayer-
clients open and maintain undeclared accounts in code names or in
3 .
the names of non-U.S. relatives or.sham corporate entities;
ensured that mail relating to those accounts was not sent to U.S.
taxpayer-clients in the United States; caused U.S. taxpayer-
clients to travel to Switzerland to conduct business relating to
the undeclared accounts; traveled to the United States to meet
with U.S. taxpayers; and, in or about 2008 and 2009, assured U.S.
taxpayer-clients not to worry about the undeclared accounts being
discovered by the IRS or U.S. law enforcement authorities
because, CASADEI and FRAZZETTO advised, un,like UBS AG - another
Swiss bank that was being investigated by U.S. authorities for
engaging in similar practices - Swiss Bank No. 1 did not have an
office in the United States and the accounts would therefore
remain secret.
Means and Methods of the Conspiracy
7. Among the means and methods by which DANIELA
CASADEI and FABIO FRAZZETTO, the defendants, and their
co-conspirators carried out the conspiracy were the following:
a. CASADEI, FRAZZETTO and other Swiss Bank No. 1
client advisors opened and managed for certain U.S. taxpayers
bank and securities accounts at Swiss Bank No. 1 that were not
reported to the IRS on Forms 1040, FBARs, or otherwise, and the
income from which was also not reported to the IRS.
b. CASADEI, FRAZZETTO and other Swiss Bank No. 1
client advisors permitted certain U.S. taxpayers to open
4
undeclared accounts using code names or numbers so that the U.S.
taxpayers could sign their code names or numbers on bank
documents, rather than use their usual signatures, and otherwise
ensure that the U.S. taxpayers' names would appear on the fewest
possible documents relating to their accounts.
c. FRAZZETTO permitted certain u.s. taxpayer-
clients to place assets in undeclared accounts held in the name
of foreign relatives in order to conceal the U.S. taxpayer-
clients' beneficial ownership of such assets.
d. FRAZZETTO permitted a U.S. taxpayer-client to
maintain an undeclared account at Swiss Bank No. 1 held in the
name of a sham corporate entity, and CASADEI advised a U.S.
taxpayer-client that the client could maintain his undeclared
account at Swiss Bank No. 1 if he placed his account in the name
of a sham corporate entity.
e. CASADEI, FRAZZETTO and other Swiss Bank No. 1
client advisors ensured that account statements and other records
relating to undeclared accounts held at Swiss Bank No. 1 by U.S.
taxpayer-clients were not sent to their U.S. taxpayer-clients in
the United States.
f. CASADEI, FRAZZETTO and other Swiss Bank No.1
client advisors caused U.S. taxpayer-clients with undeclared
accounts at Swiss Bank No. 1 to travel from the United States to
Switzerland in order to discuss their undeclared accounts.
5
g. FRAZZETTO traveled to the Southern District
of New York to review account information with certain U.S.
taxpayer-clients with undeclared accounts at Swiss Bank NO.1.
h. Various U.S. taxpayer-clients of CASADEI,
FRAZZETTO and other Swiss Bank No. 1 client advisors filed false
Forms 1040 that failed to report their interest in, and income
earned from, their undeclared Swiss Bank No. 1 accounts; evaded
income taxes due and owing; and failed to file FBARs identifying
their undeclared accounts.
A. Undeclared Accounts Opened or Managed by DANIELA CASADEI
8. From at least in or about the early 1990s up to in
or about 2010, DANIELA CASADEI, the defendant, in her capacity as
a client advisor at Swiss Bank No.1, opened new undeclared
accounts, or managed previously-opened undeclared accounts, for
at least seventeen U.S. taxpayer-clients hiding at least
$13,241,446 in total from the IRS at Swiss Bank NO.1. CASADEI's
U.S. taxpayer-clients included, among others, Clients 1 through
6, described below.
Client 1
9. At all times relevant to this Indictment, Client 1
was a U.S. citizen and resident of the United States. By in or
about the early 1990s, Client l's father had an undeclared
account at Swiss Bank No.1 (the "Account"). In or about the
early 1990s, Client 1 and Client l's father traveled to the
6
zurich office of Swiss Bank No. 1 and met with DANIELA CASADEI,
the defendant, to sign documents that gave Client 1 signature
authority over the Account. Client 1 provided CASADEI a copy of
his U.S. passport during the meeting. CASADEI provided account
statements to Client 1 and Client l's father. CASADEI referred
to these statements as "traveling, statements" because they
contained no client-identifying information on them.
10. On or about February 4, 1999, Client l's father
died and Client 1 traveled to Swiss Bank No. 1 in Zurich and met
with DANIELA CASADEI, the defendant. At Client l's instruction,
CASADEI transferred Client l's inherited assets from the Account
to a new account held jointly by Client 1 and Client l's wife
(the "New Account"). The New Account was given a code number
separate and apart from the account number so as to ensure that
Client l's name appeared on as few documents as possible.
11. In or about April 2008, Client 1 traveled to Swiss
Bank No. 1 in Zurich and met with DANIELA CASADEI, the defendant,
and a director of Swiss Bank No. l's private banking department
(the "Director") to discuss news reports regarding the United
States Department of Justice's ("DOJ") investigation into the
cross-border banking business of UBS GA ("UBS"). At or about
that time, DOJ's investigation of UBS's cross-border banking
business became publicly known and received widespread media
coverage in Switzerland and the United States. In this meeting,
7
CASADEI and the Director told Client 1 that Swiss Bank No. 1 no
longer had a presence in the United States, and was therefore
different from UBS and immune from the issues relating to UBS and
the U.S. government.
12. As of in or about 2007, Client l's undeclared
Swiss Bank No.1 account held approximately $839,678.
13. On Client l's Forms 1040 for at least the calendar
. years 2003 through and including 2008, Client 1 did not report
either Client l's interest in or signature or other authority
over Client l's account at Swiss Bank No.1. Moreover, for at
least the calendar years 2003 through and including 2008, Client
1 did not file an FBAR disclosing Client l's account at Swiss
Bank No.1.
Client 2
14. At all times relevant to this Indictment, Client 2
was a U.S. citizen and resident of the United States. Before the
mid-to-late 1990s, Client 2's father opened an undeclared account
at Swiss Bank No.1 (the "Father's Account"). In or about the
mid-to-late 1990s, Client 2 and Client 2's father traveled to
Swiss Bank No. 1 in Zurich and met with the client advisor
("Client Advisor I") for Client 2's father. Client Advisor 1
opened an account for Client 2 ("Client 2's First Account") so
that certain funds from the Father's Account could be transferred
into Client 2's First Account. Client 2 provided her U.S.
8
passport to Client Advisor 1 during the meeting.
15. In or about 1999, Client 2's father died. Shortly
before Client 2's father died, additional funds in the Father's
Account were transferred into Client 2's First Account.
16. In or about 2001, Client 2 traveled to Swiss Bank
No. 1 in Zurich and met with her new client advisor, Client
Advisor 2 ("Client Advisor 2"). During this meeting, Client
Advisor 2 recommended that Client 2 open another account using a
"fantasy," or code, name so that Client 2 would have an
additional layer of privacy and protection from the U.S.
government and Client 2's husband, whom at the time Client 2 was
in the process of divorcing. During this meeting, Client Advisor
2 opened a new undisclosed account for Client 2 using the code
name "Hydrangea" ("the Hydrangea Account") .
17. In or about 2003, Client 2 traveled to Zurich and
met with Client Advisor 2. Client Advisor 2 helped Client 2
establish another undeclared account at another Swiss bank, Swiss
Bank No.2 ("the Swiss Bank No.2 Account"), and transfer the
funds from the Hydrangea Account into the Swiss Bank No. 2
Account. During that same trip, Client Advisor 2 renamed Client
2's First Account at Swiss Bank No.1 with the code name "Red
Rubin" (hereafter, "the Red Rubin Account"). Client Advisor 2
referred to "Red Rubin" as a "fantasy name."
9
18. By in or about 2005, Client Advisor 2 had
become employed by UBS in Zurich. In or about 2005, Client 2 met
with Client Advisor 2 at a UBS office in Zurich to open a new
undeclared account ("the UBS Account") and transfer the funds in
the Swiss Bank No. 2 Account into the UBS account.
19. In or about 2007, Client 2 traveled to Swiss Bank
No.1 in Zurich and met with Client 2's new client advisor,
DANIELA CASADEI, the defendant. CASADEI referred to the name of
the Red Rubin Account as a "fantasy" name.
20. In or about the summer of 2008, Client 2 traveled
to Zurich and met with DANIELA CASADEI, the defendant, to discuss
transferring the funds in the UBS Account into the Red Rubin
Account. CASADEI approved the request and advised Client 2 to
open a new account using a new fantasy name and to close the Red
Rubin Account. CASADEI then set up a new undeclared account for
Client 2 at Swiss Bank No. 1 under the name "Conto Green-White-
House" ("the Green White House Account") .
21. At the end of 2008, as global stock markets were
declining, Client 2 called DANIELA CASADEI, the defendant, from
the United States and asked for advice concerning her investment
portfolio within the Green White House Account. CASADEI advised
that Client 2 would have to travel to Zurich to discuss the
account. After the call, Client 2 traveled to Zurich and met
10
with CASADEI. At that meeting, CASADEI advised Client 2 to "wait
it out," and not liquidate her investments because of the
downturn. Client 2 followed this investment advice.
22. In or around March 2009, Client 2 again called
DANIELA CASADEI, the defendant, from the United states with
concerns about the market. CASADEI told Client 2 that Client 2
could either "cash out the account," that is, to sell ~ l l the
securities in the account for cash, or leave it alone. Client 2
instructed CASADEI to cash out the account, and CASADEI
thereafter did so.
23. As of in or about 2008, Client 2's Green White
House Account at Swiss Bank No.1 held approximately $850,285.
24. On Client 2 ~ s Forms 1040 for at least the calendar
years 2003 through and including 2008, Client 2 did not report
either her interest in or signature or other authority over her
accounts at Swiss Bank No.1. Moreover, for at least the
calendar years 2003 through and including 2008, Client 2 did not
file an FBAR disclosing her accounts at Swiss Bank No.1.
Client 3
25. At all times relevant to the Indictment, Client 3
was a German citizen who was a lawful permanent resident of the
United States and, therefore, a U.S. taxpayer. In or about 1979,
Client 3 traveled to Swiss Bank No. 1 in Zurich and met with a
11
client advisor to open an account. Client 3 indicated to the
client advisor that he resided in New Jersey in the United
States. The account was opened under a code name, "Conto
Xenopuslaevis." Whenever Client 3 traveled to Switzerland to
visit Swiss Bank No. 1 and inquire about his account, Client 3
signed in upon entering Swiss Bank No. 1 using this code name.
26. In or about September 2008, Client 3 learned about
the DOJ investigation of UBS. Client 3 traveled to Swiss Bank
No. 1 in Zurich and met with DANIELA CASADEI, the defendant, who
was now Client 3's client advisor. Client 3 asked CASADEI if
Swiss Bank No. 1 was susceptible to the same investigative
inquiries facing UBS, and CASADEI told Client 3 not to worry.
27. As of in or about 2008, Client 3's undeclared
Swiss Bank No.1 account held approximately $350,000.
28. On Client 3's Forms 1040 for at least the calendar
years 2003 through and including 2008, Client 3 did not report
either his interest in or signature or other authority over his
account at Swiss Bank NO.1. Moreover, for at least the calendar
years 2003 through and including 2008, Client 3 did not file an
FBAR disclosing his account at Swiss Bank NO.1.
Client 4
29. At all times relevant to the Indictment, Client 4
was a U.S. citizen who resided in South Carolina. In or about
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the late 1970s, Client 4 traveled to Swiss Bank No. l's then-
existing office in Manhattan and met with a client advisor for
Swiss Bank No. 1 to open an undeclared account. In this meeting,
the client advisor explained that he would transfer the funds to
Swiss Bank No. l's office in Zurich, Switzerland where Client 4's
account would be maintained.
30. In or about November 2009, DANIELA CASADEI, the
defendant, who by that time was Client 4's client advisor, called
Client 4 in the United States. CASADEI mentioned on the call
that CASADEI had been trying to reach Client 4 for some time but
did not want to leave a message. CASADEI told Client 4 that he
had to travel to Swiss Bank No., 1 in Zurich to close the account
because the United States was applying too much pressure on Swiss
banks for maintaining undeclared accounts for U.S. taxpayers.
However, CASADEI also stated that Client 4 could continue to
maintain an account at Swiss Bank No. 1 by retaining a third
party financial advisor to manage an account for Client 4 at
Swiss Bank No.1. CASADEI explained that these third party
financial advisors were former employees of Swiss Bank No. 1 who
had left Swiss Bank No. 1 to set up their own investment firms,
and Client 4 would be charged a fee for this service. During a
telephone call to Client 4 in the United States, CASADEI provided
Client 4 with a list of names of independent financial advisors.
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31. As of in or about 2009, Client 4's undeclared
Swiss Bank No.1 account held approximately $518,241.
32. On Client 4's Forms 1040 for at least the calendar
years 2003 through and including 2008, Client 4 did not report
either his interest in or signature or other authority over his
account at Swiss Bank No.1. Moreover, for at least the calendar
years 2003 through and including 2008, Client 4 did not file an
FBAR disclosing Client 4's account at Swiss Bank No.1.
Client 5
33. At all times relevant to the Indictment, Client 5
was a U.S. citizen who resided in the United States. In or
about 1992, Client 5 traveled to Swiss Bank No. 1 in Zurich and
met with DANIELA CASADEI, the defendant. In this meeting, Client
5 told CASADEI that he wanted to open an account at Swiss Bank
No. 1 and that he would transfer funds from an account he owned
at a bank in London. Client 5 told CASADEI that he resided in
the United States.
34. Between in or about 1992 and 2009, on several
occasions Client 5 communicated from the United States with
DANIELA CASADEI, the defendant, both over the telephone and
through written communication mailed by CASADEI from a post
office box in Zurich to Client 5 in the United States.
14
35. As of in or about 2008, Client 5's undeclared
Swiss Bank No.1 account held approximately $2,571,966.
36. On Client 5's Forms 1040 for at least the calendar
years 2003 through and including 2008, Client 5 did not report
either his interest in or signature or other authority over his
account at Swiss Bank No.1. Moreover, for at least the calendar
years 2003 through and including 2008, Client 5 did not file an
FBAR disclosing his account at Swiss Bank NO.1.
Client 6
37. At all times relevant to the Indictment, Client 6
was a U.S. citizen who resided in the United States. In or about
2000 or 2001, Client 6's husband inherited an account at Swiss
Bank No.1. In or about 2001 or 2002, Client 6 and her husband
traveled to Swiss Bank No. 1 in Zurich and met with DANIELA
CASADEI, the defendant, who was the client advisor for Client 6's
husband. The purpose of the meeting was to make Client 6 a joint
owner of the account. The account was undeclared.
38. In or about March 2003, Client 6's husband died
and Client 6 moved to a new residence. Client 6 contacted
DANIELA CASADEI, the defendant, from the United States by phone
and provided Client 6's new address in Raleigh, North Carolina.
39. In or about October 2003, Client 6 called DANIELA
CASADEI, the defendant, from Client 6's residence in the United
15
States to schedule an appointment at Swiss Bank No. 1 in Zurich.
CASADEI accepted the call and scheduled the appointment. Client
6 then traveled to Zurich and converted the undeclared account
from a jointly held account to an account held in Client 6's name
alone.
40. As of in or about 2008, Client 6's undeclared
Swiss Bank No.1 account held approximately $1,801,984.
41. On Client 6's Forms 1040 for at least the calendar
years 2003 through and including 2008, Client 6 did not report
either her interest in or signature or other authority over her
account at Swiss Bank NO.1. Moreover, for at least the calendar
years 2003 through and including 2008, Client 6 did not file an
FBAR disclosing her account at Swiss Bank No.1.
42. Clients 1 through 6 of DANIELA CASADEI, the
defendant, are described in the following table:
Beneficial Code Name (s) or Approximate Date Approximate High
Owner(s) Nominee Name(s) Swiss Bank No. 1 Value of Swiss
in which Swiss Account(s) Opened Bank No. 1
Bank No. 1 Accounts
Account(s) Held
Client 1 Code Number 1999 $8.39,678
Client 2 Hydrangea/Red 1990s $850,285
Rubin/Conto
Green-White-House
Client 3 Conto 1979 $350,000
Xenopuslaevis
Client 4 1970s $518,241
Client 5 1992 $2,571,966
Client 6 Unknown $1,801,984
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B. Undeclared Accounts Opened or Managed by FABIO FRAZZETTO
43. From in or about 2005 to in or about 2010, FABIO
FRAZZETTO, the defendant, in his capacity as a client-advisor at
Swiss Bank No.1, opened new undeclared accounts or managed
previously-opened but undeclared accounts for at
least twelve U.S. taxpayer-clients hiding at least approximately
$20,585,774 in total from the IRS at Swiss Bank No.1.
FRAZZETTO's U.S. taxpayer-clients included, among others, Clients
7 through 15, described below.
Clients 7-10
44. At all times relevant to this Indictment, Client
7, and her daughters, Client 8, Client 9, and Client 10
(collectively, the "Daughters"), were U.S. citizens and residents
of the United States. In or about 1975, Client 7's husband
established an undeclared account at a predecessor bank of Swiss
Bank No.1. In or about 1995, Client 7's husband died and Client
7 inherited the account.
45. In or about 2006, Client 7 and the Daughters
traveled to Swiss Bank No. 1 in Zurich and met with FABIO
FRAZZETTO, the defendant, who was Client 7's client advisor. In
this meeting, Client 7 told FRAZZETTO that she wanted to close
her existing account at Swiss Bank No. 1 and open three separate
joint accounts, one for each of the Daughters. At Client 7's
17
direction, the funds in Client 7's account were divided roughly
equally among the three new accounts.
46. The accounts were established, and, on certain
account opening documents ("Form A") for the newly-created
accounts, Clients 7, 8, 9, and 10 each indicated that they
resided in the United States and that they were U.S. citizens.
The account opening documents also included mail hold agreements
instructing Swiss Bank No. 1 to hold all communications from
Swiss Bank No.1 for Clients 7, 8, 9, and 10 at Swiss Bank No.1
instead of sending them by mail. FABIO FRAZZETTO, the defendant,
signed these agreements.
47. In or about the fall of 2006, Client 8 traveled to
Swiss Bank No. 1 in Zurich and met with FABIO FRAZZETTO, the
defendant. In this meeting, FRAZZETTO recommended that Client 8
get a debit card from Swiss Bank No. 1 in order for Client 8 to
have easier access to Client 8's funds. FRAZZETTO further
advised Client 8 that she could only use the debit card in
Europe, and that Client 8 should not use it in the United States.
48. At various times, including in or about October
2006 and September 2007, FABIO FRAZZETTO, the defendant, traveled
to hotels in Manhattan and met with Client 7, who was accompanied
during these visits by either Client 8 or Client 10. During
these trips, FRAZZETTO sometimes reviewed account statements with
18
Client 7, and specifically noted to Client 7 that the statements
did not have Client 7's name on them because FRAZZETTO did not
want any documents identifying Client 7.
49. In or about 2008 or 2009, Client 9
traveled to Swiss Bank No. 1 in Zurich and met with FABIO
FRAZZETTO, the defendant. Client 9 had become aware of the DOJ
investigation into UBS and asked FRAZZETTO how the investigation
of UBS would impact Swiss Bank No.1. FRAZZETTO told Client 9
that Swiss Bank No. 1 was accepting new U.S. clients and that
Swiss Bank No. 1 was not exposed to investigation like UBS
because Swiss Bank No. 1 did not have a presence in the United
States.
50. In or about the spring or summer of 2009, Client 7
and Client 8 traveled to Swiss Bank No. 1 in Switzerland and met
with FABIO FRAZZETTO, the defendant. FRAZZETTO advised that some
U.S. clients of Swiss Bank No. 1 were moving assets from their
undeclared accounts into new accounts held in the name of foreign
relatives in order to further conceal the U.S. clients' assets.
51. In or about July and August of 2009, Client 8
traveled to Swiss Bank No. 1 in Zurich and met with FABIO
FRAZZETTO, the defendant. Client 8 discussed the IRS voluntary
disclosure program with FRAZZETTO and told FRAZZETTO that Client
8 would bring the disclosure paperwork with her to Zurich so
19
FRAZZETTO could review the documents. FRAZZETTO told Client 8 it
was "unwise" to carry the paperwork with her to Zurich and
instructed Client 8 not to do it. FRAZZETTO mentioned a law firm
that could assist Client 8 in making a voluntary disclosure to
the IRS
I
but FRAZZETTO discouraged Client 8 from making a
disclosure. FRAZZETTO told Client 8 not to panic.
52. In or about August 2009
1
the Daughters traveled to
Swiss Bank No. 1 in Zurich and had two separate meetings with
FABIO FRAZZETTO
I
the defendant.
a. In the first meeting
l
the Daughters told
FRAZZETTO that Client lOIs husband had an Israeli cousin ("the
Cousin") I who could become the new nominee account holder for
funds in the Daughters I existing joint accounts. FRAZZETTO made
it clear that I as far as Swiss Bank No. 1 was concerned
l
the
Cousin would now legally own the moneYI and the Daughters would
have to go through the Cousin for withdrawals or any other type
of transaction.
b. The next daYI the Daughters brought the
Cousin to the office of Swiss Bank No. 1 to meet with FRAZZETTO.
In this second meeting
l
FRAZZETTO interviewed the Cousin and
asked the Cousin questions about the Cousin/s background and
place of residence. FRAZZETTO made a copy of the Cousin/s
Israeli passport. FRAZZETTO instructed the Cousin to complete
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the account opening documents. FRAZZETTO also instructed the
Daughters to complete documents to close their accounts so the
transfer of funds into the nominee account opened under the
Cousin's name could be executed. The nominee account was opened
and the funds were transferred.
53. In or about 2006, the joint account held by Client
7 and Client 8 at Swiss Bank No.1 held approximately $1,008,431.
54. In or about 2006, the joint account held by Client
7 and Client 9 at Swiss Bank No.1 held approximately $1,056,110.
55. In or about 2006, the joint account held by Client
7 and Client 10 at Swiss Bank No. 1 held approximately
$1,048,005.
56. On Client 7's Forms 1040 for at least the calendar
years 2003 through and including 2008, and on the Daughters'
Forms 1040 for at least the calendar years 2006 through and
including 2008, they did not report either their interest in or
signature or other authority over their accounts at Swiss Bank
No.1. Moreover, Client 7, for at least the calendar years 2003
through and including 2008, and the Daughters, for at least the
calendar years 2006 through and including 2008, did not file
FBARs disclosing their accounts at Swiss Bank No.1.
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Client 11
57. At all times relevant to this Indictment, Client
11 was a U.S. citizen and resident of the United States. In or
about October 2001, Client 11 traveled to Swiss Bank No. 1 in
Zurich and met with a client advisor. In this meeting, Client 11
provided Client II's U.S. passport and told the client advisor
that he wanted to open an account at Swiss Bank No.1. The
client advisor made a copy of Client II's U.S. passport. The
account was given a code number separate and apart from the
account number so as to ensure that Client II's name appeared on
as few documents as possible.
58. In or about 2005, Client 11 learned that FABIO
FRAZZETTO, the defendant, was Client II's new client- advisor.
Client 11 traveled to Swiss Bank No. 1 in Zurich and met with
FRAZZETTO to review the account. When Client 11 reviewed his
account statements in Zurich, FRAZZETTO recommended that Client
11 not take the statements with Client 11 or that Client 11
destroy the statements before returning to the United States.
FRAZZETTO advised Client 11 not to carry anything identifying
Swiss Bank No.1.
59. In or about 2008 or 2009, Client 11 learned about
the DOJ investigation into UBS from media reports. Client 11
called FABIO FRAZZETTO, the defendant, from the United States and
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asked how Swiss Bank No. 1 was going to prevent the disclosure td
the IRS of names of U.S. taxpayers with undeclared accounts at
Swiss Bank No.1. FRAZZETTO told Client 11 not to worry because
the Swiss government would not divulge any names.
60. In or about 2008, Client 11's undeclared account
at Swiss Bank No.1 held approximately $400,303.
61. On Client 11's Forms 1040 for at least the
calendar years 2003 through and including 2008, Client 11 did not
repo'rt either his interest in or signature or other authority
over his account at Swiss Bank NO.1. Moreover, for at least the
calendar years 2003 through and including 2008, Client 11 did not
file an FBAR disclosing his account at Swiss Bank No.1.
Clients 12 and 13
62. At all times relevant to the Indictment, Client 12
and Client 13, who are brothers, were U.S. citizens residing in
the United States. On or about December 31, 2002, the mother of
Client 12 and Client 13 died and Client 12 and Client 13 each
inherited fifty percent (50%) of the mother's undisclosed account
("the Inherited Account") at a predecessor bank in Switzerland
that subsequently became part of Swiss Bank NO.1.
63. In or about 2003, Client 12 traveled to a
predecessor bank to Swiss Bank No. 1 in Zurich and met with a
client advisor to close the Inherited Account and transfer Client
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12's share of funds in the Inherited Account into a new account
established for Client 12. A new account was opened for Client
13 as well. Client 12's account and Client 13's account were
given code numbers separate and apart from the account numbers so
as to ensure that Client 12's and Client 13's names appeared on
as few documents as possible.
64. In or about 2007 or 2008, Client 12 and Client 13
came to learn that FABIO FRAZZETTO, the defendant, was their new
client advisor at Swiss Bank NO.1. In or around this time,
Client 12 traveled to an office of Swiss Bank No. 1 in Zurich and
met with FRAZZETTO.
65. In or about 2007 or 2008, Client 13 and Client
13's cousin, who also had an undeclared account managed by FABIO
FRAZZETTO, the defendant, met with FRAZZETTO at a hotel in
midtown Manhattan. In this meeting, FRAZZETTO reviewed Client
13's account statements with Client 13; the statements did not
have Client 13's name on them.
66. In or about 2008 or 2009, Client 12 met with FABIO
FRAZZETTO, the defendant, at an office of Swiss Bank No. 1 in
Zurich. In this meeting, Client 12 discussed media reports of
the DOJ investigation into UBS. FRAZZETTO stated that Swiss Bank
No. 1 might close undeclared accounts held by U.S. clients, and
that the bank was currently deciding what to do. Also during
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that meeting, Client 12 informed FRAZZETTO that Client 12 was
either going to close or declare the account to the IRS.
FRAZZETTO informed Client 12 that if Client 12 declared the
account, a new account would have to be opened and Client 12
would need to complete a Form W-9.
67. As of in or about 2007, Client 12's undeclared
account at Swiss Bank No.1 held approximately $265,136 and
Client 13's undeclared account at Swiss Bank No.1 held
approximately $211,873.
68. On Client 12's and Client 13's Forms 1040 for at
least the calendar years 2003 through and including 2008, Client
12 and Client 13 did not report either their interest in or
signature or other authority over their account at Swiss Bank No.
1. Moreover, for at least the calendar years 2003 through and
including 2008, Client 12 and Client 13 did not file FBARs
disclosing their accounts at Swiss Bank No.1.
Client 14
69. At all times relevant to the Indictment, Client 14
was a U.S. citizen residing in the United States. In or about
1999, Client 14 inherited an undeclared account originally
established by Client 14's father at a predecessor bank that
subsequently became part of Swiss Bank No.1. Client 14 used the
services of an independent Swiss asset manager (UAsset Manager
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1") to form a Liechtenstein foundation named Horsal. In turn,
Horsal owned another foreign entity named Herzen which nominally
held Client 14's account at the predecessor bank and then at
Swiss Bank No.1 beginning in 2004 ("the Herzen Account") .
70. In or about 2005, Client 14 traveled to Swiss Bank
No. 1 in Zurich and met with his client advisor, FABIO FRAZZETTO,
the defendant.
71. In or about 2009, Client 14, with the assistance
of Asset Manager I, moved the contents of the Herzen Account at
Swiss Bank No. 1 to an account at another Swiss bank.
72. As of in or about 2007, Client 14's undeclared
account at Swiss Bank No.1 held approximately $4,880,666.
73. On Client 14's Forms 1040 for at least the
calendar years 2003 through and including 2008, Client 14 did not
report either his interest in or signature or other authority
over his account at Swiss Bank NO.1. Moreover, for at least the
calendar years 2003 through and including 2008, Client 14 did not
file an FBAR disclosing his account at Swiss Bank No.1.
Client 15
74. At all times relevant to the Indictment, Client 15
was a U.S. citizen who resided in the United States. In or about
1982, Client 15 inherited his father's account at a predecessor
bank to Swiss Bank No.1.
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75. In or about 2007, Client 15 learned that FABIO
FRAZZETTO, the defendant, was his new client advisor at Swiss
Bank No.1.
76. In or about June 2009, Client 15, while in
Switzerland, called FABIO FRAZZETTO, the defendant, to set up an
appointment to meet at Swiss Bank No. 1 in Zurich. FRAZZETTO was
not available, and DANIELA CASADEI, the defendant, spoke with
Client 15 and scheduled an appointment for Client 15 to meet at
Swiss Bank No.1.
77. Shortly thereafter, Client 15 met with DANIELA
CASADEI, the defendant, at Swiss Bank No.1. During that
meeting, CASADEI advised Client 15 that Swiss Bank No. 1 wanted
to stop doing business with u.S. persons. CASADEI further told
Client 15 that if he wanted to keep his undeclared account at
Swiss Bank No.1, Client 15 would have to agree to the formation
of a corporate-entity that would then become the account holder
of Client 15's undeclared account at Swiss Bank No.1.
78. As of in or about 2008, Client 15's undeclared
account at Swiss Bank No.1 held approximately $595,434.
79. On Client 15's Forms 1040 for at least the
calendar years 2003 through and including 2008, Client 15 did not
report either his interest in or signature or other authority
over his account at Swiss Bank No.1. Moreover, for at least the
calendar years 2003 through and including 2008, Client 15 did not
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file an FBAR disclosing his account at Swiss Bank NO.1.
80. Clients 7 through 15 of FABIO FRAZZETTO, the
defendant, are described in the following table:
Beneficial Code Name (s) or Approximate Date Approximate High
Owner(s) Nominee Name(s) Swiss Bank No. 1 Value of Swiss
in which Swiss Account(s) Opened Bank No. 1
Bank No. 1 Accounts
Account(s) Held
Clients 7-10 The Cousin (in 1975 $3,112,546
2009)
Client 11 Code Number 2001 $400,303
Client 12 Code Number 2003 $265,136
Client 13 Code Number 2003 $211,873
Client 14 Herzen Unknown $4,880,666
Client 15 Unknown $595,434
81. In addition, DANIELA CASADEI and FABIO
FRAZZETTO, the defendants, conspired with one another, with
various other client advisors at Swiss Bank No.1, and with at
least 151 additional U.S. taxpayer-clients who maintained
undeclared accounts at Swiss Bank No.1, to hide at least an
additional $567,000,000 from the IRS at Swiss Bank No.1.
Statutory Allegations
82. From at least in or about the 1990s up through and
including in or about 2010, in the Southern District of New York
and elsewhere, DANIELA CASADEI and FABIO FRAZZETTO, the
defendants, together with others known and unknown, willfully and
knowingly did combine, conspire, confederate, and agree together
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and with each other to defraud the United states of America and
an agency thereof, to wit, the IRS, and to commit offenses
against the United States, to wit, violations of Title 26, United
States Code, Sections 7206(1) and 7201.
83. It was a part and an object of the conspiracy that
DANIELA CASADEI and FABIO FRAZZETTO, the defendants, together
with others known and unknown, willfully and knowingly would and
did defraud the United States of America and the IRS for the
purpose of impeding, impairing, obstructing, and defeating the
lawful governmental functions of the IRS in the ascertainment,
computation, assessment, and collection of revenue, to wit,
federal income taxes.
84. It was further a part and an object of the
conspiracy that various U.S. taxpayer-clients of DANIELA CASADEI
and FABIO FRAZZETTO, the defendants, together with others known
and unknown, willfully and knowingly would and did make and
subscribe returns, statements, and other documents, which
contained and were verified by written declarations that they
were made under the penalties of perjury, and which these U.S.
taxpayer-clients, together with others known and unknown, did not
believe to be true and correct as to every material matter, in
violation of Title 26, United States Code, Section 7206(1).
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85. It was further a part and an object of the
conspiracy that DANIELA CASADEI and FABIO FRAZZETTO, the
defendants, together with others known and unknown, willfully and
knowingly would and did attempt to evade and defeat a substantial
part of the income tax due and owing to the United States of
America by certain of Swiss Bank No. l's U.S. taxpayer clients,
in violation of Title 26, United States Code, Section 7201.
Overt Acts
86. In furtherance of the conspiracy and to effect the
illegal object thereof, DANIELA CASADEI and FABIO FRAZZETTO, the
defendants, and others known and unknown, committed the following
overt acts, among others, in the Southern District of New York
and elsewhere:
a. In or about the summer of 2008, CASADEI opened
a new undeclared account for Client 2 at Swiss Bank No. 1 under
the name "Conto Green-White-House."
b. In or about November 2009, CASADEI contacted
Client 4 in the United States and provided Client 4 with the
option of Client 4 keeping an undeclared account at Swiss Bank
No. 1 by using a third party financial advisor to manage Client
4's account at Swiss Bank No.1.
c. In or about October 2003, CASADEI spoke with
Client 6, who called from Client 6's residence in the United
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States, and scheduled an appointment for Client 6 to travel to
Zurich in order to convert Client 6's undeclared account from a
joint account to a single account.
d. In or about June 2009, CASADEI advised Client
15 that Client 15 could maintain an undeclared account at Swiss
Bank No. 1 if Client 15 agreed to the formation of a corporate
entity that would then become the account holder of Client 15's
undeclared account at Swiss Bank No.1.
e. In or about 2006, FRAZZETTO opened new
undeclared accounts for Client 7 and her daughters, Client 8,
Client 9, and Client 10, at Swiss Bank No 1.
f. In or about August 2009, FRAZZETTO opened a
new undeclared account in the name of the Cousin, an Israeli
citizen and resident, and transferred the assets of Client 7,
Client 8, Client 9, and Client 10 into that account in order to
further conceal those u.S. taxpayer-clients' financial interest
in those funds.
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g. In or about 2007 or 2008, FRAZZETTO met with
Client 13 at a hotel in Manhattan.
(Title 18, United States Code, Section 371.)
FOREPERSON PREET BHARARA
United States Attorney
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