Switzerland’s Dark Secret: Former Finance Executive Pleads Guilty to Tax Evasion Scheme Worth $60 Million

A Web of Deception: The “Singapore Solution” Exposed

A former Swiss finance executive has pleaded guilty in a New York federal court to conspiring to defraud the United States in a tax evasion scheme known as the “Singapore Solution”. Rolf Schnellmann, 61, who was once the head of Zurich-based Allied Finance Trust AG, helped deceive the Internal Revenue Service by stashing money belonging to US taxpayer clients in undeclared accounts at a private Swiss bank, Privatbank IHAG Zurich AG, between 2008 and 2014.

The Scheme

As part of the “Singapore Solution”, Schnellmann and his 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 for their assistance in the tax evasion scheme.

The Consequences

Schnellmann was arrested in August in Italy and extradited to the United States, where he is now facing a maximum possible sentence of five years in prison when he is sentenced on July 19th.

Key Points:

• Rolf Schnellmann, former head of Allied Finance Trust AG, pleaded guilty to conspiring to defraud the US
• The “Singapore Solution” scheme involved hiding $60 million in income and assets held by wealthy Americans
• Undeclared accounts were opened at Privatbank IHAG Zurich AG between 2008 and 2014
• Funds were transferred across several countries and Hong Kong, and back to the private bank
• Schnellmann and co-conspirators received large fees for their assistance in the scheme
• Schnellmann is facing a maximum possible sentence of five years in prison when sentenced on July 19th