NEW YORK, Dec. 21, 2010 (GLOBE NEWSWIRE) -- The law firm of Napoli Bern Ripka, LLP has recently filed a $9.4 million arbitration claim with the Financial Industry Regulatory Authority (FINRA) on behalf of a former UBS client claiming that UBS misrepresented U.S. tax liability on investments held in overseas accounts. UBS has been accused by the United States of helping more than 52,000 clients evade taxes in offshore accounts and has been forced to pay $780 million in fines, interest, and restitution. UBS lured clients into believing the bank's practices were legal. UBS' representations caused UBS clients to violate U.S. tax laws resulting in prison sentences and substantial fines.
UBS' sales efforts in the U.S. resulted in the firm accumulating $20 billion in assets owned by wealthy U.S. individuals. Despite an agreement with the U.S. that required UBS to divulge information on U.S. citizens' accounts held overseas UBS developed procedures designed to evade the agreement. UBS' deceptive banking practices generated approximately $200 million in fees each year.
The former UBS client, who has asked to remain anonymous, was a longtime customer of UBS who trusted and followed the advice of his brokers. The claimant voluntarily came forward to the Department of Justice in order to assist their investigation and declare his overseas assets. The claimant provided the DOJ with over 40 names of UBS employees or affiliates that fraudulently advised him regarding his investments and tax liability. As a direct result of his cooperation, more than 10,000 people have been identified in the government's investigation.
"The U.S. government has fined UBS over three-quarters of a billion dollars for fostering tax evasion," said Marc J. Bern, Senior Partner at Napoli Bern Ripka. "UBS has simply ruined countless lives. Napoli Bern Ripka will be accepting additional claims of those believed to have been defrauded by UBS."
The statement of claim filed before the Financial Industry Regulatory Authority alleges that UBS committed fraud in violation of the Securities Exchange Act of 1934, violated the Securities Act of 1933 by selling securities not registered with the SEC to U.S. clients, sold securities in the U.S. through agents not registered or licensed in violation of the Securities Act of 1933, and aided and abetted the foregoing violations, among other allegations.
Napoli Bern Ripka fights for investors who can't fight for themselves. The firm does not charge a legal fee unless it recovers money for its clients. The law firm of Napoli Bern Ripka, LLP has obtained over $2.5 billion dollars in verdicts and settlements for its clients since 1999 including millions on behalf of individual and corporate investors who lost money through fraudulent and/or negligent advice. Napoli Bern Ripka is currently investing all claims that UBS gave investors fraudulent tax advice and is providing free consultations to any client that may have a claim. The firm is currently representing over 300 securities claims throughout the United States.
Contact Napoli Bern Ripka for a free consultation.
*No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.
CONTACT: Napoli Bern Ripka, LLP (212) 267-3700 x 159 www.napolibern.com
