Econintersect: The New York Times, Financial Times and World News have reported the the U.S. Department of Justice has arrested and is holding in custody Christos Bagios, a senior private banker with Credit Suisse. It is reported that the charges are conspiracy and fraud in his dealing with wealthy Americans seeking to avoid taxes. It is possible that the cooperation of Mr. Bagios will be sought to bring more pressure on the bank to cooperate or settle for alleged misdealings. It is also possible that Bagios could be key in bringing charges against U.S. citizens who sought to illegally avoid taxes.Mr Bagios is the head of Credit Suisse’s Relationship Management West Coast group, a private banking unit that is part of Credit Suisse Private Advisors.
Credit Suisse Private Advisors is based in Zurich and sells investment and wealth management strategies to affluent individuals, families and institutions. It is registered both with the SEC (Securities and Exchange Commission) and with FINRA, the Financial Industry Regulatory Authority. It is not known if the SEC is investigating the bank.
Prior to early 2009, Bagios was associated for 15 years with private banking activities at UBS. There is no information at present about any possible further investigation of UBS. However, there is history of action against UBS. From the Financial Times: