A federal judge on Tuesday cleared the way for prosecutors to force
the Swiss banking giant UBS to turn over the names of wealthy clients
as part of an investigation of its offshore private banking practices.

An order signed by Judge Joan A. Lenard of Federal District Court in
Miami gives prosecutors and the Internal Revenue Service the authority
to request the information. It was unclear whether UBS would turn over
the names or appeal the process.

The decision is a setback for UBS, which is struggling to maintain its
tradition of Swiss banking secrecy amid the rapidly unfolding
investigation. The bank said in an e-mailed statement Tuesday that
“UBS looks forward to working with the I.R.S. to address the summons.”

The embattled bank, which is struggling against investor concerns
about further write-downs and its ability to retain vital private
clients, also announced a major overhaul of its corporate governance
rules on Tuesday.

It said it would replace four directors and more clearly separate the
responsibilities of the board from those of the executive management
to end what some critics called a cozy relationship that had led to
the bank’s becoming one of the first and largest casualties of the
subprime mortgage turmoil.

Federal prosecutors have accused UBS of helping American clients hide
$20 billion overseas in secret offshore accounts, evading $300 million
or more in taxes.

The I.R.S. and prosecutors want UBS to turn over the names of all
American clients who had accounts from December 2002 through 2007 at
the Swiss offices of UBS, its subsidiaries or affiliates �" and for
which UBS did not have a tax form known as a W-9.

The request covers any taxpayer with the authority to receive account
statements or trade confirmations or to withdraw money from the
Swiss-based accounts. And it covers accounts that were not just
managed by but also maintained and monitored by UBS. Included in the
request are the names of clients for whom UBS did not accurately or
timely file 1099 forms, which report income earned, or taxes withheld.

“As we have noted, UBS takes this matter very seriously and is working
diligently with both Swiss and U.S. government authorities, consistent
with Swiss law and the legal frameworks for intergovernmental
cooperation and assistance,” the UBS statement said.

http://www.nytimes.com/2008/07/02/business/worldbusiness/02tax.html?_r=2&ref=bus\
iness&oref=slogin&oref=slogin

Experience
Trust
Intelligent Advice
Exceptional Service
Extraordinary Customer Care
When it comes to trusts, foundations, IBC's, LLC's, investments and
legal services...it all comes down to this: Trust.
Because international investment and legal advice is no place to guess
about the safety or the security of you or your clients assets. You
want proven reliability from a firm that has over time earned the
trust of thousands of people we serve worldwide both corporate
and individuals. Red Sea Management, Ltd

http://www.redseamanagement.com
http://www.offshorebanking.co.cr/
http://www.offshoreinvestment.co.cr/
http://www.offshoretrust.co.cr/
http://www.offshore.co.cr/