Insurer to Pay $77M to Settle Criminal Tax Evasion Case

Swiss Life sold about 1,608 of the wrapper policies to U.S. taxpayers, and those policies held more than $1.45 billion in assets, according to the agreement announcement.

Swiss Life helped some U.S. customers hide policies from U.S. authorities by letting the customers' offshore financial representatives receive the policy documents, and by using sham death benefit payments to help customers move assets back into the United States, officials allege.

The Agreement

Audrey Strauss, the U.S. attorney for the Southern District of New York, joined with other federal officials to file a criminal information concerning the allegations.

In the criminal information document, prosecutors charge Swiss Life Holding, and Swiss Life affiliates in Liechtenstein, Luxembourg and Singapore with conspiring with U.S. taxpayers and others to hide offshore assets from the IRS.

The terms of the agreement call for Swiss Life and the affiliates to "accept responsibility for their criminal conduct by stipulating to the accuracy of the Statement of Facts attached to the Agreement," according to the agreement announcement.

"The Agreement requires the Swiss Life Entities to refrain from all future criminal conduct, enhance remedial measures, and continue to cooperate fully with further investigations into hidden insurance policies and related policy investment accounts," it explained.

The government has agreed to dismiss the criminal charge after three years if Swiss Life makes the $77 million payment to the U.S. Treasury and abides by other deal terms.

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