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Former UBS exec jailed over underage prostitute

A former UBS executive director was sentenced on Wednesday to more than four months in jail for having sex with an underaged Singaporean prostitute in a sleaze scandal that sparked uproar in the city-state.

Published: 8 May 2013 10:37 CEST
Former UBS exec jailed over underage prostitute
Bürgin arrives at court on Wednesday. Photo: Roslan Rahman/AFP

Singapore Judge Eddy Tham denounced Swiss citizen Jürg Bürgin's "reckless" act of having intercourse with the 17-year-old woman on two occasions at five star hotels in 2010 and 2011.
   
Bürgin booked the prostitute through an escort agency website. 

Wearing a light blue shirt, he looked sombre throughout the court proceedings and looked down several times as the judge read out the verdict.

"In terms of culpability, the accused clearly did not take any reasonable steps to avoid falling foul of the law," the judge said.

"He was reckless in not verifying the age of the minor," Tham said.

"He is not a naive person but someone holding a responsible position as a banker. He conceded that not everything he read (on) the internet should be accepted at face value."

Bürgin, a married 41-year-old former executive with banking giant UBS, had said at the start of his trial in March that he was tricked into thinking the girl was older than 17.
   
Prostitution is legal in Singapore but it is against the law to pay for the sexual services of girls under 18, in a bid to protect the young from exploitation.
   
The case caused an uproar last year in Singapore after Bürgin and 50 other men, including business executives, a former school principal, a navy captain and a police superintendent, were accused of paying for sex with the girl.

One of them was socialite and environmental activist Howard Shaw, 41, a grandson of Asian movie mogul Runme Shaw.

He was sentenced to 12 weeks in jail but released after eight weeks for good behaviour.

Court documents showed that Bürgin booked the prostitute, who went by the name "Chantelle", on an escort agency's website.
   
Bürgin made the bookings under a false name "Robert James" but the mobile number he used was traced to UBS, which had assigned the phone to him.
   
The judge said he had originally decided on a five-month jail term, but sentenced Buergin to four months and three weeks in jail taking into consideration the six days he spent in remand.

Defence lawyer Selva Naidu said Bürgin "doesn't intend to appeal for now" but has two weeks to decide.

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FRANCE

Switzerland’s UBS faces €3.7-billion fine as crucial court ruling looms

A Paris court will rule Wednesday on whether Swiss banking giant UBS illegally tried to convince French clients to hide billions of euros in Switzerland, charges which prompted prosecutors to seek a record €3.7-billion fine.

Published: 19 February 2019 09:10 CET
Switzerland's UBS faces €3.7-billion fine as crucial court ruling looms
UBS denies charges it helped French clients evade tax and says it will defend itself "vigorously". Photo: AFP

The trial opened last autumn after seven years of investigations, launched when several former employees came forward with claims of unlawful conduct. 

The move came as authorities across Europe cracked down on tax evasion and dubious banking practices in the wake of the global financial crisis which erupted in 2007.

The pressure eventually forced Switzerland to effectively end its tradition of ironclad bank secrecy, by joining more than 90 countries which agreed to automatically share more client account information among each other.

In the UBS case, French authorities determined that more than €10 billion had been kept from the eyes of tax officials between 2004 and 2012.

The National Financial Prosecutor's office urged a €3.7-billion ($4.2 billion) fine, the largest ever sought in France, saying the bank and its directors “were perfectly aware that they were breaking French law” by unlawfully soliciting clients and helping them evade French taxes.

They also sought a €15 million fine for UBS's French subsidiary, and fines of up to €500,000 for six top executives, including Raoul Weil, the former third-in-command at UBS, and Patrick de Fayet, formerly the second-ranking executive for its French operations.

In addition, lawyers for the French state, which is a plaintiff in the case, asked for €1.6 billion in damages.

UBS, which was ordered to post €1.1 billion in bail, has denied the charges and said its operations complied with Swiss law.

It also says that it was “unaware” that some French clients had failed to declare assets in Switzerland, and that prosecutors have not produced any proof, such as client names or account numbers, to back up their fraud claims.

The case is being closely watched by industry executives at a time when Paris and other European capitals are hoping to lure multinational banks from London as Brexit looms.

'Milk tickets'

UBS is accused of organising or inviting prospective clients to prestigious outings such as the French Open or luxury hunting retreats, where UBS's Swiss bankers would meet their “prospects” — something they were not allowed to do under French law.

UBS France directors then used notes called “milk tickets” to keep track of how many “milk cans” – amounts of money – were transferred to Swiss accounts.

They say the system was merely a way to balance out bonuses due to French bankers who were effectively losing a client to their Swiss peers, and the notes were later destroyed.

But investigators claim the “milk tickets” were proof that UBS had a parallel accounting system for keeping the transfers off its official books.

Only one “milk ticket” was found during the inquiry, prompting defence lawyers to argue there was no proof to justify claims of a massive fraud.

Yet prosecutors pointed to the roughly 3,700 French UBS clients who later took advantage of an amnesty offer to regularise their tax declarations with the French authorities.

UBS has been embroiled in a series of similar cases, most notably in the United States, where the authorities said the bank used Switzerland's banking secrecy laws to help rich clients avoid taxes.

In 2009 it paid $780 million to settle charges it helped thousands of American citizens hide money from the Internal Revenue Service, and agreed to turn over information on hundreds of clients, severely denting Switzerland's long tradition of shielding banking clients and their operations from prying eyes.

That case was also prompted by a former American UBS employee turned whistleblower, Bradley Birkenfeld, whose book “Lucifer's Banker: The Untold Story of How I Destroyed Swiss Bank Secrecy” was published in 2016.

Last November UBS was again sued by US authorities, who accuse the bank of misleading investors over the sale of mortgage-backed securities in 2006 and 2007, just before the financial crisis struck.

UBS has denied the charges and said it will defend itself “vigorously”.