The Department of Justice filed charges against two client advisers at Julius Baer Group Ltd., alleging that they conspired with more than 180 American clients to hide over $600 million in assets from the IRS.  According to the indictment, Daniela Casadei and Fabio Frazzetto helped clients set up accounts under names such as “Hydrangea” or “Red Rubin” and boasted that Julius Baer was less susceptible to suit by the United States since it maintained no presence there and had a long standing commitment to secrecy.

This indictment is part of a larger effort by the U.S. government to target foreign banks that allow Americans to evade taxes by keeping their money in offshore bank accounts.  Eight foreign banks have faced grand jury investigations.  Over fifty individuals, including clients, bankers, advisors, and attorneys, have been charged in connection with similar allegations against UBS AG, Credit Suisse Group AG, and HSBC Holdings Plc..  Almost 30,000 taxpayers have disclosed their offshore accounts in order to avoid prosecution.