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IRS Rewards UBS Whistleblower with $104M Payout

Sep. 11, 2012 5:02pm Becket Adams

IRS Rewards Bradley Birkenfeld $104 Million for Helping Crack UBS Case

Former UBS employee Bradley Birkenfeld

WASHINGTON (TheBlaze/AP) — The Internal Revenue Service has awarded an ex-banker $104 million for providing information about overseas tax cheats — the largest amount ever awarded by the agency, lawyers for the whistleblower announced Tuesday.

Former Swiss banker Bradley Birkenfeld is credited with exposing widespread tax evasion at Swiss bank UBS AG. Birkenfeld himself served roughly two and-a-half years in prison for a fraud conspiracy conviction related to the case, which resulted in a $780 million fine against the bank and an unprecedented agreement requiring UBS to turn over thousands of names of suspected American tax dodgers to the IRS.

“The IRS today sent 104 million messages to whistleblowers around the world — that there is now a safe and secure way to report tax fraud and that the IRS is now paying awards,” Birkenfeld’s lawyers, Stephen M. Kohn and Dean A. Zerbe, said in a statement. “The IRS also sent 104 million messages to banks around the world — stop enabling tax cheats or you will get caught.”

The IRS, which doesn’t usually confirm individual award payments, said Birkenfeld signed a disclosure waiver, allowing the agency to confirm his award.

“The IRS believes that the whistleblower statute provides a valuable tool to combat tax non-compliance, and this award reflects our commitment to the law,” IRS spokeswoman Michele Eldridge said in an email.

Birkenfeld has become something of a cause célèbre among whistleblowers because of the magnitude of his case and the fact that he was jailed after cooperating with authorities.

In a summary of the award provided by Birkenfeld’s lawyers, the IRS said, “The comprehensive information provided by the whistleblower was exceptional in both its breadth and depth.”

“While the IRS was aware of tax compliance issues related to secret bank accounts in Switzerland and elsewhere, the information provided by the whistleblower formed the basis for unprecedented actions against UBS AG, with collateral impact on other enforcement activities and a continuing impact on future compliance by UBS AG,” the IRS said in the summary.

Bradley Birkenfeld (left) the former UBS banker who became a whistleblower (AP)

Federal prosecutors, however, had said Birkenfeld withheld information about his own dealings with a former UBS client who pleaded guilty in 2007 to tax charges.

In 2006, Congress strengthened whistleblower rewards. The 2006 law targets high-income tax dodgers, guaranteeing rewards for qualified whistleblowers if the company in question owes a least $2 million in unpaid taxes, interest and penalties.

Some lawmakers, however, have complained that the IRS has been slow to pay out awards.

“The potential for this program is tremendous, and it’s up to the IRS to continue paying rewards and demonstrating to whistleblowers that the process will work and that they will be heard and protected,” said Sen. Chuck Grassley, R-Iowa, who helped write the law. “An award of $104 million is obviously a great deal of money, but billions of dollars in taxes owed will be collected that otherwise would not have been paid, as a result of the whistleblower information.”

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All photos courtesy the AP.

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Comments (80)

RaydocX
Posted on September 12, 2012 at 2:16am
So Hollywood and Matt DAmon make a movie wherein the whistleblower IS the criminal… Is this maybe life imitating art? Oops, I’m caught, I’d better implicate everyone else to miimize my punishment.

Monk said it best… When you take your after tax dollars and by investments make more money, only to have the government tax it, you are a victim of double taxation’ a practice that prompted a rebellion against Britain a couple centuries ago…

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- EzraTaftBenson4RonPaul
  Posted on September 12, 2012 at 2:46am
  Well said, we need sound currency, we need the Constitution… Romney and Obama work for the SAME Banksters. Beware what you write on the internet, The government arrested Brandon Raub for less. Hi Homeland security, suck it.
  
  Report this comment
The-Monk
Posted on September 11, 2012 at 7:59pm
Does anyone here know how The Blaze decides when a “page 2″ is started? TIA

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- Detroit paperboy
  Posted on September 11, 2012 at 8:28pm
  So they borrowed it from china ………………
  
  Report this comment
- Marine25
  Posted on September 11, 2012 at 9:29pm
  We financed two wars borrowing billions from China and people are outraged at the 104M and not the billions in hidden overseas instead of supporting our troops? These tax cheats are traitors, yet they are defended by the right as patriots. The great majority of Americans agree with me, and Romney knows they do. He will never let us see that he contributed less to our nation, and our servicemen than you or I did.
  
  Report this comment
- The-Monk
  Posted on September 11, 2012 at 10:13pm
  @Marine25
  
  You do understand the difference between paying taxes on income and then investing that money that you paid taxes on and reaping the rewards or failures of the capitol gains for your investments? Right?
  
  Report this comment
- NOT A CRAZY
  Posted on September 12, 2012 at 1:05am
  This whole thing is run on wordpress.com, so maybe you can figure it out there Monk.
  
  Report this comment
suz
Posted on September 11, 2012 at 7:32pm
uh, sounds like a payoff to me…a bribe…a quid pro quo, perhaps. whatever it is, it’s unethical — you don’t whistle-blow to make a load of dough.

this is cronyism right out there in the open.

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neke
Posted on September 11, 2012 at 7:25pm
So was the $104 m before or after taxes?

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progressiveslayer
Posted on September 11, 2012 at 7:13pm
Why anyone would want to help a criminal enterprise is beyond me,oh I guess he had 104 million reasons to help the crooks.

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sparkyrules
Posted on September 11, 2012 at 7:10pm
Goody goody gumdrops,we all live under the same laws and tax cheats should be prosecuted rather it be the average Sad Sack or the arrogant Richie Rich..

But there needs to be an arm of the law that exclusively awards whistle blowers $$$substantial amounts$$$ for exposing the corruption and ‘ill gotten financial gain’ from those in Washington DC.Lobbyists,elected officials,appointed officials,etc,etc….
We used to have a invisible 4th branch of the government that would help keep corruption in check.It was called the Press.Not anymore.
Many politicians and administrators go to DC to ‘serve the people’ on a decent six figure wage but end up becoming muti-millionaires after a few years.I wonder why?
Its not that hard to figure out and nobody in the incestuous City called Washington DC seems to care.

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I SPY
Posted on September 11, 2012 at 6:47pm
Did obama’s IRS regime force the man to denounce God first, before giving him the reward? Hmmm, something to think about.

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- progressiveslayer
  Posted on September 11, 2012 at 7:09pm
  Yes he was required to worship Barry Soetoro our POS fraud president.
  
  Report this comment
HollisBrown
Posted on September 11, 2012 at 6:12pm
there was this guy who started back in 2008 stealing trillions of dollars out of the american peoples account, im not sure of his name i think his middle name was hussein.

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REPUB1
Posted on September 11, 2012 at 5:55pm
Oh GREAT!! Give Out More Of My & Your Money’s To A FELON?? Boy Where’s My Money For NOT BEING A RAT????

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- barber2
  Posted on September 11, 2012 at 6:20pm
  This sounds like the behaviors we used to hear about the Soviet Communists with their KGB and their gulags.
  
  Report this comment
barber2
Posted on September 11, 2012 at 5:49pm
Gee, think of the deal Anonymous could make with the IRS .

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QuincySmith
Posted on September 11, 2012 at 5:45pm
The government is out of money! SURPRISE. They are going after tax cheats, unless you are Turbo-Tax Cheat Geithner, or any number of administration officials and democRATs. Those not paying their ‘fair share’ had better be forewarned. There really is a very simple solution: 1) eliminate brackets; 2) reduce tax rates; – problem solved.

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- progressiveslayer
  Posted on September 11, 2012 at 7:26pm
  The feds have been collecting federal income tax for 99 years illegally since congress has no authority to tax our income.They owe us trillions but we’ll never see it they’ll just continue to collect taxes illegally.
  
  http://thelawthatneverwas.com/
  
  Report this comment
- Marine25
  Posted on September 11, 2012 at 9:23pm
  @PROGSLAYER
  The nut bag running the website you posted and I just spent 30 minutes reading is wrong in a number of ways. 38 states ratified the proposal although only 36 were required as there were 48 states in the Union. The final total of state certified ratifications was actually 42 as 4 states went ahead and finished their legislative deliberations after the threshold was cleared. 2 states suspended debates after the 36th ratification. The legislatures of the following states rejected the amendment without ever subsequently ratifying it: Connecticut, Rhode Island, Utah, Virginia.
  The legislatures of the following states never considered the proposed amendment:Florida, Pennsylvania. There are any number of ‘constitutional’ cranks out there operating websites and newsletters and their reliabilty is often suspect, their bias is all too obvious and their academic and intellectual authenticity are laughable. These ‘scholars’ fall from the same tree as those who hate and therefore ‘intellectually disprove’ the validity and intent of the 14th and those who believe one’s parents must be natural born citizens in order for their children to be natural born. That argument is not only historically so false it can be disproved by neophyte secondary school students, but so geometrically entangled that it smacks of serfdom or the landed gentry.
  Anger and intellect seldom survive in the same soul.
  
  Report this comment
- progressiveslayer
  Posted on September 11, 2012 at 10:45pm
  Since thirty-six states were needed for ratification, the failure of thirteen to ratify was fatal to the Amendment. This occurs within the major (first three) defects tabulated in Defects in Ratification of the 16th Amendment. Even if we were to ignore defects of spelling, capitalization and punctuation, we would still have only two states which successfully ratified.
  
  Report this comment
Cartman05
Posted on September 11, 2012 at 5:44pm
Funny how these are the only whistleblowers that are rewarded. Anyone snitching on Government agencies are fired, fined or put into backwater jobs. What a crock of crap.

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Anonymous T. Irrelevant
Posted on September 11, 2012 at 5:40pm
Why not just make GE, GM, and other Obama-favored companies, Congressmen, Senators, Obama’s Cabinet members, the Mayor of Chicago PAY their taxes and we will recover BILLIONS in tax money. IMO, the IRS has no business outside the borders of the US.

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- Threeve_Texas_With_A_Dollar_Sign
  Posted on September 11, 2012 at 7:09pm
  The IRS has no business INSIDE the borders of the US either.
  
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TADTAD
Posted on September 11, 2012 at 5:34pm
He’ll soon need all that cash to 1) pay his taxes on the money paid to him by the IRS, and 2) for the lawyers he’ll need to hire for outing private information and 3) buy security to protect him from the effect of “contracts,” and other assorted perils that will soon chase him down. What goes around, comes around, bro.

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marshall1963
Posted on September 11, 2012 at 5:26pm
And so it begins. The IRS is using KGB tactics. Turn in your friends and colleagues for money and favors. How nice. Proof that the progressive tax doesn’t work. If the tax code was fair there would be less tax cheating.
Well done comrade Bradley. I hope it was worth spending the rest of your life looking over your shoulder. Good luck with all that. And thanks for helping to fund Obamacare.

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- barber2
  Posted on September 11, 2012 at 6:14pm
  Sounds like what I would expect from the Radical Left Obama people…Big Brother ….
  
  Report this comment
girlnurse
Posted on September 11, 2012 at 5:23pm
Now it starts folks…turn in your friends and neighbors to the gustapo (IRS).

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The-Monk
Posted on September 11, 2012 at 5:22pm
Hi Darmok,

What did Andy Stern say?

“We took names. We watched how they voted. We know where they live.”

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- The-Monk
  Posted on September 11, 2012 at 5:24pm
  OK…. what happened to Darmok’s post?????
  
  Report this comment
- Darmok and Jalad at Tanagra
  Posted on September 11, 2012 at 5:36pm
  I have never seen a post of mine removed that fast, and I ain’t even cussing.
  
  Report this comment
- Anonymous T. Irrelevant
  Posted on September 11, 2012 at 5:42pm
  You must have offended someone.
  
  Report this comment
- Darmok and Jalad at Tanagra
  Posted on September 11, 2012 at 5:45pm
  All I said is “You will turn in your nieghbors, and if you don’t, we know where you live” but in a german accent, with v’s instead of w’s. Maybe there is some anti-German people running this site.
  
  Report this comment
- RJJinGadsden
  Posted on September 11, 2012 at 5:55pm
  Dang, I missed it. I’ve noticed that some of my realy sedate comments just end up missing later. Have no idea how or why.
  DARMOK, thanks for catching us back up, LOL.
  http://www.youtube.com/watch?v=LkpLo3FqAWw
  
  Report this comment
- The-Monk
  Posted on September 11, 2012 at 6:04pm
  Hi RJJ,
  
  Wow, Steppenwolf…. that brings back some memories. Do you remember “Snow Blind Friend”?
  http://www.youtube.com/watch?v=OMxCi3ljWEg
  
  Hi Darmok,
  
  You must have offended Dora Glasberg and she/it/he finely figured out the “report post” button. LOL
  
  Report this comment
- RJJinGadsden
  Posted on September 11, 2012 at 6:13pm
  Hi MONK, Oh yeah, I used to have all of ther albums on vinyl back in the day. Now I have a Double CD collection set. It’s in my music files. They were probably my first favorite rock band. As I recall, Snowblind Friend was on “7″ too. I knew a few people almost like that back in the ’70s.
  
  Report this comment
- RJJinGadsden
  Posted on September 11, 2012 at 6:19pm
  MONK, had my mind on the song when I posted that last one. Did Gasbag manage to get one of my posts deleted? That’s really funny considering how offensive she/it/he is. I shudder just wondering if that is really a pic of her/he/it as the avatar? Makes me want to take another shower when I see it.
  
  Report this comment
- The-Monk
  Posted on September 11, 2012 at 6:38pm
  Hi RJJ,
  
  Yea, I had a High School friend that reminded me of that song. He died in late 90′s. Self inflicted alcohol poisoning. I last saw him in Jan 1996 while visiting Virginia. He walked into a hospital and left out the back in a body bag. I have a photo of him that I had blown up and framed for his parents after he died. It is such a good photo that when his Mother decided to get it re-done years later the photo lab refused to do it saying that it was a professional photo and they needed permission from the photographer to do it. I’ll look for it and send it to you at the other site.
  
  Don’t know about Dora Gasbag or anyone else having any of your posts deleted. If you see that happen again let me know. : )
  
  Report this comment
- RJJinGadsden
  Posted on September 11, 2012 at 6:49pm
  MONK, Sorry, misunderstood you. Thought you meant Gasbag might have complained and had one of mine deleted. I’ll have to take a look around to see what Dora may have said.
  
  Report this comment
- The-Monk
  Posted on September 11, 2012 at 7:04pm
  Hi RJJ,
  
  No misunderstanding on your part. I was just guessing that some troll like Dora the Flora had it removed. She/it/he is such a loser and a complainer that I wouldn’t put it past that trash to try to have posts deleted. She/it/he is one sick puppy. No offense meant to the “puppy world”. LOL
  
  Report this comment
ExTex
Posted on September 11, 2012 at 5:21pm
Who needs E-harmony? Just have the press release your sudden windfall information and your dance card will be full from now on.

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- girlnurse
  Posted on September 11, 2012 at 5:38pm
  Yeah he’s gonna dance alright! LOL
  How would u like your large size cranium posted on here with that headline to go with it!?
  Man…I actually kinda feel for the guy…the gov will find a way to get their money back…they always do! The other day I read an article that said HALF of Americans die with less than $10,000 dollars!!
  
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The-Monk
Posted on September 11, 2012 at 5:16pm
So……. what’s the tax on $104M when it comes directly from the IRS?

I wonder what bank he’ll put it in? Cayman Islands?

Larry Flint is offering a $1M reward for info on Romney’s off shore accounts.
(Heard that on the radio yesterday morning)

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- soybomb315_II
  Posted on September 11, 2012 at 5:26pm
  all of a sudden, there is a large incentive for someone to leak Romney’s records or provide ‘proof’. Let’s see
  
  Report this comment
- The-Monk
  Posted on September 11, 2012 at 5:45pm
  Hi Soybom315,
  
  Yea, too bad no one is looking at Harry Reid and Nancy P’s “investments”.
  
  Most all of Congress are cheaters and lairs when it comes to money. I hope the Tea Party wins big in 2012.
  
  My Blessings go out to you and your family Soybom315. You are a most honorable person.
  
  Report this comment
- RJJinGadsden
  Posted on September 11, 2012 at 5:48pm
  Hi MONK, I’m wondering just how many of these tax cheats are Hollywood left type of people along with those like John Kerry, who does have his own personally established off shore accounts and not blind trusts. LOL, those that I have mentioned here along with Pelosi who must also have off shore accounts are immune to prosecution as long as Holder has a strangle hold on the DOJ.
  
  Report this comment
- Darmok and Jalad at Tanagra
  Posted on September 11, 2012 at 5:53pm
  Larry Flint is offering anyone $1Million dollars if they can raise his flagpole.
  
  Report this comment
- RJJinGadsden
  Posted on September 11, 2012 at 5:59pm
  DARMOK, LOL, how long do you suppose this one will be here?
  
  Report this comment
- barber2
  Posted on September 11, 2012 at 6:10pm
  How about looking for Barry Soetoro/ Barack Obama’s school records ?! FAST.
  
  Report this comment
- The-Monk
  Posted on September 11, 2012 at 6:11pm
  Hi RJJ and Darmok,
  
  Here’s a link for the Larry Flint reward….
  
  http://tv.yahoo.com/news/larry-flynt-offers-1m-reward-mitt-romneys-tax-011431300.html
  
  Report this comment
- RJJinGadsden
  Posted on September 11, 2012 at 6:24pm
  MONK, I stopped myself from saying what I really wanted, but it would probably have disapeard faster than Darmok’s post.
  
  Report this comment
- Darmok and Jalad at Tanagra
  Posted on September 11, 2012 at 6:27pm
  This site is getting soooo touchy lately. Soon, you wont be able to say “BOOGER”
  
  http://www.youtube.com/watch?v=hKF8YxWWhI4
  
  Report this comment
- The-Monk
  Posted on September 11, 2012 at 6:44pm
  BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER
  
  Looks like BOOGER is OK….. : )
  
  Try “c i r c u m s t a n c e s” and “i n c u m b e n t” without the spaces. Bet you can’t post those words. Unless The Blaze has fixed the C-U-M in any word issue. Go ahead and give it a try…..
  
  Report this comment
- RJJinGadsden
  Posted on September 11, 2012 at 6:55pm
  DARMOK, I loved WKRP, the show started back when I lived in Tampa a very long time ago. Loved the Hindenburg turkey drop.
  Dang MONK, your going to wear out booger too soon here.
  
  Report this comment
- The-Monk
  Posted on September 11, 2012 at 7:10pm
  Hi RJJ,
  
  Guess what?
  
  “c i r c u m s t a n c e s” and “i n c u m b e n t” without spaces is still not allowed. : (
  
  BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER
  
  BOOGER seems to be OK though…… LOL
  
  Report this comment
- The-Monk
  Posted on September 11, 2012 at 7:20pm
  I’m thinking that all non-troll people here should reply to every troll post with BOOGER over and over again and nothing else. Just BOOGER.
  
  @ Dora Glasberg,
  
  BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER BOOGER
  
  LOL
  
  Report this comment
- resme
  Posted on September 11, 2012 at 9:16pm
  Woah, What happened to Darkmok’s comment?
  
  Nice video, RJJ, lmao.
  
  Report this comment
- The-Monk
  Posted on September 11, 2012 at 9:40pm
  Hi Darmok and Jalad at Tanagra,
  “Larry Flint is offering anyone $1Million dollars if they can raise his flagpole.”
  
  Barry meets Larry? That should do it. Barry can do it but Larry would suffer the consequences like the others. First comes : O then comes : (
  
  Report this comment
resme
Posted on September 11, 2012 at 5:15pm
In Soviet Russia Government F.KS YOU!

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- The-Monk
  Posted on September 11, 2012 at 5:26pm
  Hi Resme,
  
  Looks like Darmok’s post was removed????
  
  Hope all is well with you and your family Resme. : )
  
  Report this comment
- Darmok and Jalad at Tanagra
  Posted on September 11, 2012 at 5:34pm
  Yeah, that was fast. I guess they don’t like fake german accents.
  
  Report this comment
- RJJinGadsden
  Posted on September 11, 2012 at 6:05pm
  RESME, that was funny.
  http://www.youtube.com/watch?v=s_EwR3UxDcs
  
  Report this comment
- The-Monk
  Posted on September 11, 2012 at 6:20pm
  Hi RJJ,
  
  Now, that was funny. Where do you find all those links?
  
  Being a Bruce Lee fan (I’m better with Nunchucks or Nunchaku than he ever was) I really liked the Bruce Lee Chuck Norris fight.
  
  “In Soviet Russia… Chuck Norris still kicks yous ass” was priceless. LOL
  
  Report this comment
- The-Monk
  Posted on September 11, 2012 at 6:55pm
  OK…. how did my 6:20 pm reply post to RJJ’s 6:05 pm post end up as the “first post” all by itself????
  
  Sup Blaze???
  
  Report this comment
doomytram
Posted on September 11, 2012 at 5:12pm
Meanwhile, back in Pyongyang, Tax Cheat Geithner and the IRS take 40 million if I win Mega Millions tonight.

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- girlnurse
  Posted on September 11, 2012 at 5:21pm
  Yep! Then they go on a fancy vacations and play more golf!
  
  Report this comment
FREEDOMoverFEAR
Posted on September 11, 2012 at 5:11pm
Snitches lay in ditches.

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girlnurse
Posted on September 11, 2012 at 5:10pm
So does he get a new name with a new identity?

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t00nces2
Posted on September 11, 2012 at 5:07pm
Yeah!!! The government catches someone who wants to keep the money they earn and punish them because someone rats them out! Yeah!!!!

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MistaB
Posted on September 11, 2012 at 5:07pm
Flat tax would save $Billions in whistle-blower awards. But I think the IRS would rather do business with rats.

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- soybomb315_II
  Posted on September 11, 2012 at 5:16pm
  Exactly. Flat tax means a lot less tax cheats and a lot less whistleblower awards
  
  http://www.buzzfeed.com/andrewkaczynski/when-concerned-citizen-mitt-romney-hated-the-flat
  
  Report this comment
- barber2
  Posted on September 11, 2012 at 6:12pm
  The IRS, the arm of the Executive Branch, can be used like the KGB by a shady administration….
  
  Report this comment
- RJJinGadsden
  Posted on September 11, 2012 at 6:59pm
  MONK, actually couldn’t think of Yakof Smirnoff’s name quick enough and just typed in “In Russia” and a bunch of stuff came up. Just picked that one out of the group. After posting it, I kept watching it. My wife had to run in here to see what I was laughing out loud about.
  
  Report this comment
- The-Monk
  Posted on September 11, 2012 at 7:06pm
  Hi RJJ,
  
  How did your post/reply end up over here? Weird….
  
  Report this comment

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