Another man might have gone wild, throwing exorbitant parties, bathing in champagne, seducing beautiful women with baubles and promises he was unlikely to keep. But I’d already done all that, and I’d learned long ago that it wasn’t about the money at all. I had lived in that world for nearly two decades and discovered that even the most wealthy and powerful people weren’t made whole by their riches or influence. I had seen firsthand that the coveted trappings of wealth were often merely bandages for wounded hearts.
Life was about the joy of living, the people with whom you lived it, and if you were suddenly a man of means, it was about helping those you loved who deserved it. In a way, I was like a man who had won a lottery. But instead of just picking lucky numbers, I had fought the fight of my life for this prize, and the scars of that battle would always remain.
Of course that didn’t mean that I wasn’t going to salve some of my wounds with private pleasures. That sprawling rental in Rye needed some nice new furniture, framed artwork for the walls, and with me being an avid movie buff, an enormous flat screen with surround sound. I also indulged in my two favorite pastimes, NHL hockey and Formula One racing, and started a collection of superstar helmets, uniforms, trophy cups, and classic old posters (Exhibit 20). But that was about it. I already had all the watches I needed, and one slick sports car was enough, at least for the moment.
I was still on probation, and would be for three more years. I had to reside in New Hampshire, but given my luxurious home, that was no trial. The indignities, however, continued. I applied for and received a New Hampshire driver’s license, but I couldn’t go anywhere outside the state without express permission. The government refused to return my old US passport, which had scores of visas and stamps from many foreign lands. That passport was something of an amulet to me, and it seemed petty and spiteful for them to keep it. I applied for a new one and it finally arrived, but I wouldn’t be allowed to use it for years. These things, I knew, were the result of the Department of Justice’s residual bitterness over the turn of fate that had left me not only liberated but rich beyond measure. It wasn’t as if they feared my mobility. They knew full well that if I’d wanted to return to the ways of my old days, I needed no more than a cell phone.
At the National Whistleblower Center in Washington, DC, my case was the apogee of the Center’s accomplishments. As I mentioned before, when Steve Kohn and Dean Zerbe held a press conference to announce the glorious fruits of my historic efforts, I was denied permission to go by the DOJ. I also had a probation officer keeping an eye on me. Eventually the guy stopped visiting my home, maybe because he figured that a multimillionaire with a Porsche, a mansion, fine dining, and plenty of great company wasn’t about to flee.
If Kevin Downing thought that keeping me housebound was also going to keep me quiet, he was sadly mistaken. In fact, it had the opposite effect. Rye, New Hampshire, is a lovely place to visit the whole year round. At least once a month newspaper reporters or television pundits appeared at my house to record my story, and I took each opportunity to rail against a so-called justice system that was still ass-up incompetent and completely corrupt. But for the most part, I knew that my words would fall on deaf ears. It was only the actions I’d taken that mattered, and now, across the world, secret banking institutions continued to crumble, and the reverberations of what I’d done would thunder for decades. I knew that I’d been the catalyst for all that, and while I received little credit for my coup, it didn’t matter all that much. I had done my part. It was time to spread the joy.
I’m not going to give you a long list of the redemptive things I did, because frankly, I didn’t believe I needed redemption. However, I quietly chose some deserving causes and people I loved. My family members and close friends benefited, of course, and a few kind strangers, such as those people on Fritz Bell’s farm who’d treated me so well. My favorite hockey team, the Boston Bruins, thought my idea of starting a charity for needy children was a fine idea, and a Boston pediatric hospital benefited as well.
I heard that shortly after my release and reward, Cliff Falla snatched a copy of the Wall Street Journal from the prison library. The headline featured my face and story, and Cliff raced around the dining hall waving it like a victory pennant. Since that time, Cliff’s been released from Schuylkill and has heard from me again, and I’m hoping that someday Anwar will too. I was never tight-fisted before my award, nor was I careless with money after, yet having so much of it offered me limitless chances to brighten a day, or erase the ones in the past that were hard. What gave me the most pleasure was organizing weekend trips in New Hampshire, taking my friends to luxurious restaurants, handing out the menus and saying with my Birkenfeld grin, “Order anything you want! It’s all on UBS, and Kevin Downing’s the waiter!”
I had no big plans for the future, but there were a few things I was going to do. If you’re of my generation, you might recall an old TV show called Branded. The story was about an Old West cavalry officer who’s been falsely accused of treachery. His sword broken and his ranks ripped away, he spent the entire series determined to clear his name and serve justice on those who’d betrayed him. It’s a classic story often repeated in lore, from Greek mythology to the whistle-blowers of today, and that has been one of my goals. Speak truth to power, serve distasteful facts to those who can’t swallow them, show up whenever another Swiss banker raises his ugly head and tries to pretend that he just didn’t know. Find other brave men and women who’ve been scorned and ruined and give them my shoulder to lean on. I’ve already given more than a hundred interviews and appeared on countless television shows, but the job’s not done yet. Apparently it’s my vocation chosen by fate, and I embrace it.
One choice fomented in my mind soon after my release and solidified later with clarity—and some sadness. Once my probation ended, I was going to leave the United States, probably never to return. It was the country of my birth, where I had gone from being a patriot willing to die for it to becoming an oppressed citizen, burned and betrayed. To me, America was no longer that shining city on the hill. It was ruled by corrupt politicians, incompetent prosecutors, and greedy financiers, many of whom were my sworn enemies, and would be so to this day and beyond. I knew I’d always be looking over my shoulder, but far from America’s shores would be better. I thought about a nice lake in Europe, with a secluded parcel of slope on the shore, a large, strong house, and well-armed bodyguards. I would still visit my friends and family in the States, of course, and they would happily visit my castle as well. But I would never again be subject to the whims of the unjustly powerful. I had lived well before, and I knew how to enjoy it.
But that wouldn’t happen for another few years.
Meanwhile, I’m content, wealthy, and wiser. I have enough toys to amuse me, and on occasion indulge in more. There are charities to help, hobbies to pursue, and plenty of good company comes my way. My best friends are still the old ones who knew me before I was rich. I tumbled down that dark rabbit hole, and came out whole and happy.
But since you already know me so well, there’s no sense in lying.
I’m still a hammer, looking for nails …
ACKNOWLEDGMENTS
Lucifer’s Banker is the story of my whistle-blowing and the eventual unraveling of Swiss bank secrecy. While many helped me in telling my story, I first would like to acknowledge all those who supported me during my long saga.
My family and close friends stood by me from my early efforts uncovering the scandal, through my long court case, time in prison, and up until today. My father was especially proud for the unethical practices I uncovered at UBS. My brother Doug was instrumental looking after my back through the many legal actions brought against me and worked closely with my whistle-blower attorneys, ensuring the strongest case was made on my behalf. Thank you Doug!
Stephen Kohn and David Colapinto out of Washington, DC and Dean Zerbe from Houston represented my interests under the IRS whistle-blower law. There are no finer attorneys than
these guys. They have a keen understanding of whistle-blower legislation, and the workings of Washington DC, and an eagle’s eye for the endless machinations of the Department of Justice. I have them to thank for the historic and unprecedented award I received, something only they had the confidence to pursue. John Cline out of San Francisco and Chris Hoge from Washington, DC were instrumental in protecting my interests in actions relating to my former client and earlier legal representation. Charles Poncet was there at the outset in Geneva, Switzerland, providing sage counsel, as I internally blew the whistle at UBS and eventually resigned. Philippe de Guyenro was invaluable coordinating my cooperation with the French magistrates as they investigate UBS’s criminal conduct. Gerald Greenberg, my savvy attorney in Miami, strong-armed the DOJ to permit me to travel to Paris while I was still on probation to provide critical assistance to the French criminal investigation into UBS, an investigation the DOJ was not eager for me to support. Thanks to Jerry I was also able to celebrate my fiftieth birthday in the City of Lights with many friends!
A number of non-profit organizations took on my case early on. Jesselyn Raddack, then at the Government Accountability Project (GAP), was instrumental in shining an early light on my case. She exposed the DOJ’s attempts to undermine my efforts, as they prosecuted the very person who handed them the keys to the largest tax evasion fraud in history and succeeded in jailing me for what many considered heroic efforts. Her earlier harrowing experiences as a whistle-blower at the DOJ and representations of countless others helped bring early attention to my plight.
In addition to GAP, National Whistleblower Center (NWC), Project on Government Oversight (POGO), Taxpayers Against Fraud (TAF), Transparency International, Global Witness, Democracy Now, No Fear Coalition, Disclosure Watch, Federal Ethics Center, Whistleblowers USA, Federal Accountability for Reform (FEAR), National Forum on Judicial Accountability, Whistleblowers Support Fund, International Association of Whistleblowers, and National Public Radio (NPR) all did their part in shining the spotlight on the DOJ abuse I was subject to and the complicit role of UBS and other private banks in conspiring to help wealthy Americans evade their tax obligations.
Along with the whistle-blower organizations, numerous journalists conducted in-depth investigations and reported on the illicit practices of UBS and other private banks as well as the DOJ’s leniency in pursuing and meting out justice. In the US, I want to give credit to the following journalists for their insightful reporting: Sharyl Attiksson, Fabio Benedetti-Valentini, Michael Bronner, Jesse Drucker, Juan Gonzalez, James Grimaldi, David Hilzenrath, William Hoke, Eamon Javers, Janet Novack, Daniel Ryntjes, Laura Saunders, Dave Solomon, Ken Stier, and Vivienne Walt. Outside the US, where the story of private banks conspiring with private citizens to evade tax obligations is still developing, the following journalists have helped expose UBS and other private banks in their complicity in depriving governments worldwide of taxes: Ian Allison, Tom Burgis, Astrid Doerner, Catherine Dubouloz, Siri Gedde-Dahl, Lukas Hassig, Michel Henry, Arthur Honegger, John Letzing, Matthieu Pelloli, Edouard Perrin, François Pilet, Valerie de Senneville, Haig Simonian, Sebastian Sittl, Goran Skaalmo, Noopur Tiwari, Roar Valderhaug, Matthew Valencia, and Maritina Zafeiriadou. I am sure I have missed others’ valuable contributions to the uncovering of this global fraud; for my oversight I apologize and extend my sincere thanks.
I took on the then world’s largest bank without fully understanding the repercussions whistle-blowers are subjected to for doing the right thing. I have been fortunate over the past few years to meet a few heroic individuals who risked it all to uncover wrongdoing. I would like to thank Harry Markopolos, the man who exposed Bernie Madoff’s multi-billion dollar Ponzi scheme, and the many other whistle-blowers for their courageous efforts. We need to recognize these individuals for their important contributions to society and support legislation and programs that protect their work and ensure they are appropriately compensated.
I want to thank all those who helped me in telling my story. To my friends, family, and colleagues, I greatly appreciate your efforts recounting my many experiences around the globe, helping me portray the business and life of a private banker, and ensuring my story did not take unnecessary detours. I would also like to thank Eric Rayman for helping me navigate the opaque world of literary law.
I will always be eternally grateful to my very dear friends Fritz Bell, may he rest in peace, and Will Fregosi who provided me shelter, a job, and company after I was released from prison. They helped me land on my two feet, were very proud of my whistle-blowing, and encouraged me to tell my story to the world.
Lastly, I am forever grateful to Steven Hartov for the many patient hours he dedicated to learning my story, his thorough immersion into the life of a private banker, his thoughtful research of my historic whistle-blowing, and the long drama of my fight against the DOJ. He masterfully captured my voice, and in Lucifer’s Banker we tell the untold story of how I destroyed Swiss bank secrecy.
APPENDIX
Top Ten UBS Scandals
My historic whistle-blowing uncovered but one of many illegal schemes perpetrated by UBS in recent years. While the offshore tax-evasion scandal I exposed was among the largest, the scope and range of the remaining schemes gives testimony to the rampant disregard for the law with which UBS conducted its affairs across the globe.
1.May 10, 2004 – Illegal Transfer of US Currency to Embargoed Countries
FINE: $100 million
2.February 18, 2009 – Offshore Tax Evasion in the United States
FINE: $780 million
3.May 4, 2011 – Securities Fraud in the Muni Bond Derivatives Market
FINE: $160 million
4.November 26, 2012 – Rogue UK Trader Lost $2.3 billion
FINE: $47.6 million
5.December 19, 2012 – Currency Market LIBOR Rigging
FINE: $1.5 billion
6.July 25, 2013 – Mortgage-Backed Securities Fraud
FINE: $885 million
7.July 29, 2014 – Offshore Tax Evasion in Germany
FINE: $403 million
8.September 30, 2014 – Offshore Tax Evasion and Money Laundering in France
FINE: $1.4 billion
9.May 20, 2015 – Currency Market and LIBOR Scandal
FINE: $545 million
10.March 10, 2016 – UBS Bankers Bonuses Ruled Illegal
FINE: $130 million
This UBS power point presentation outlined the reasons why UBS clients were incorrectly informed that they were totally shielded by Swiss Bank secrecy.
This UBS memorandum was the quintessential reason for Brad to commence his historic whistle-blowing.
This UBS training document outlined sample case scenarios for UBS bankers to contemplate answers to as they entered customs in the US and Canada.
The secret July 2, 2008 Non-Prosecution Agreement that required UBS Senior Executive Martin Liechti to fully cooperate with the government. Two weeks later, Liechti appeared before the senate subcommittee but refused to answer any questions. Despite the clear violation of this agreement, Liechti quietly left the country the following month and was never prosecuted by the Department of Justice.
This letter from the Chairman of the US Senate Permanent Subcommittee on Investigations, Carl Levin, clearly recognizes Brad’s courageous efforts that led to multiple investigations, hearings, and reports that toppled UBS.
This letter from the author of the whistle-blowing law, Charles Grassley, clearly outlines the government’s lack of action on Brad’s unprecedented information about UBS.
This letter from Brad’s legal team, Steven Kohn and Dean Zerbe, was a thank-you response to Senator Levin and discussed the DOJ Prosecutor, Kevin Downing.
PHOTOGRAPHS
Exhibit 1: The Birkenfeld “Castle” in Massachusetts, where Brad and his two brothers were raised. Photo Credit: the Birkenfeld family
Exhibit 2: Brad and his brother Doug playing at the beach during a summer in the early 1970s on Cape Cod, Ma
ssachusetts. Photo Credit: the Birkenfeld family
Exhibit 3: Brad graduated from Norwich University in 1988. This private military academy instilled a deep code of honor in him, and taught him to “never leave a man behind.” Photo Credit: the Birkenfeld family
Exhibit 4: Brad left State Street Bank and Trust Company in 1994. To show the Boston bank what he thought of their dubious practices, he hired clowns to pass out information about their activities during the busy lunch hour. Photo Credit: Bradley C. Birkenfeld
Exhibit 5: These are actual UBS safe deposit box keys. Clients could stash practically anything in these boxes with the guarantee of strict Swiss confidentiality. Photo Credit: Bradley C. Birkenfeld
Exhibit 6: As a Director of KEY Clients at UBS in Geneva, this was Brad’s nametag for special functions. Photo Credit: Bradley C. Birkenfeld
Exhibit 7: After earning his International MBA, Brad began his work in the lucrative, secret world of Swiss private banking, starting with Credit Suisse, Barclays Bank, and then UBS in Geneva. He resided in Zermatt. Photo Credit: Bradley C. Birkenfeld
Exhibit 8: Brad purchased a Ferrari 360 Modena spider convertible for 265,500 Swiss francs; he paid for it in 1,000-Swiss-franc notes. Photo Credit: Bradley C. Birkenfeld
Exhibit 9: In 2002, Brad attended the private jet event in Nassau, Bahamas sponsored by UBS. Photo Credit: Bradley C. Birkenfeld
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