Swiss asset manager Finacor has been fined $295,000 (€262,600) by the US Department of Justice after it helped US clients hide accounts that had not been declared to US tax authorities.
The Department of Justice said it reached a resolution with Finacor, which operates a small, privately held asset management business in one office in Basel with five employees.
Under the agreement, Finacor is to pay a penalty of $295,000 and cooperate in various ways, including giving details about accounts in which US taxpayers have an interest, making a complete disclosure of its cross-border activities and giving details about other banks that transferred funds into secret accounts.
Finacor declined to comment on the matter.
The department said Finacor had made the agreement in return for department’s agreement not to prosecute it for tax-related criminal offences.
Caroline Ciraolo, acting assistant attorney general of the Justice Department’s tax division, said: “Through the Swiss Bank Programme, we have received information not just about culpable banks but also asset management and investment advisory firms that played a role in the concealment of US-related accounts and the evasion of US taxes.”
She the agreement with Finacor showed the department was willing to reach “fair and appropriate resolutions” with companies that came forward promptly, disclosed all relevant information and cooperated fully, including naming criminals.
In other news, private equity business Dyal Capital Partners has acquired a passive minority interest in alternative asset management group Chenavari Investment Managers in a deal meant to aid business cooperation for both parties.
Dyal Capital is part of independent investment manager Neuberger Berman.
Michael Rees, managing director of Dyal, said Chenavari was in a good position to benefit from the investment opportunities linked to European banks’ deleveraging, around investment strategies in credit and private debt markets.
Chenevari will continue to be led by its chief executive and CIO Loïc Fery, along with co-CIO Frederic Couderc, and Dyal’s new interest in the firm will be passive with no supervision of Chenevari’s governance, the two firms said.