Credit Suisse pleads guilty to criminal wrongdoing

By Kyle Johnson,

On Monday, federal prosecutors finally scored a win against banks after Credit Suisse announced that it would plead guilty in a tax evasion case.

The Swiss bank accepted a plea agreement where the bank will be found guilty of one charge of conspiring to aid tax evasion and will pay nearly $2.6 billion, reports The New York Times. The bank will be watched over by an independent monitor for a two-year period.

Credit Suisse was accused of helping their American clients evade taxes and hide assets offshore. U.S. Attorney General Eric Holder said, "This case shows that no financial institution, no matter its size or global reach, is above the law."

He added that the bank "conspired to help U.S. citizens hide assets in offshore accounts in order to evade paying taxes."

According to The Wall Street Journal, the financial penalty will be divided into a $100 million payment to the Federal Reserve, a $715 million payment to the New York Department of Financial Services and then finally nearly $1.8 billion to the Justice Department.

The last win for the Justice Department came about five years ago when UBS AG agreed to acknowledge it helped U.S. citizens evade taxes and pay $780 million in exchange f0r not having to plead guilty.

 
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