LOS ANGELES, June 15 Three managers of U.S. tax
preparation company United Revenue Service Inc have been charged
with conspiracy and tax evasion by establishing undeclared bank
accounts for clients at Luxembourg and Switzerland branches of
United Revenue Service former chief executive officer David
Kalai, his son and former president Nadav Kalai, and David
Almog, wh o was a manager at the company's New York branch, were
charged with conspiracy in a grand jury indictment filed
Thursday in federal court in Los Angeles.
The Israeli banks were not identified.
According to the indictment, the three men allegedly helped
clients in setting up undeclared accounts from about April 2000
to March 2011 at the branches of two Israeli banks, identified
as Bank A Luxembourg and Bank B Switzerland-Luxembourg.
The three along with an unindicted co-conspirator, created
offshore companies in Belize and elsewhere "to act as named
account holders on the undeclared bank accounts" in order to
hide the clients' ownership and conceal the clients' income from
the Internal Revenue Service, the indictment said.
The number for the United Revenue Service in Costa Mesa,
California, where David Kalai, where worked, was disconnected.
A spokeswoman for the Consulate General of Israel in Los
Angeles had no immediate comment.
Sandra Brown, head of the tax division at the U.S.
attorney's office in Los Angeles, was not immediately available.
In September, Reuters reported U.S. authorities were
scrutinizing three of Israel's largest banks over suspicions
their Swiss outposts helped American clients evade taxes.
At the time people briefed on the matter said the banks
under scrutiny by the U.S. Justice Department's criminal tax
division were Bank Hapoalim, Bank Leumi le-Israel BM
The shift to Israel from Switzerland, for years the main
focus of the Justice Department's campaign against offshore
private banking secrecy, signaled the broadening of a landmark
probe by the agency that began in 2007 with UBS AG
, Switzerland's largest bank.
United Revenue Service was incorporated in the state of
Nevada with multiple locations in the United States. The case
is U.S. v. Almog, 11-00930, U.S. District Court, Central
District of California.