A Florida woman, Gilda Rosenberg, has admitted to working with her family to hide over $90 million in secret bank accounts overseas. For more than a decade, she and her family moved money around in different countries to avoid paying taxes in the United States. They used banks in Switzerland, Israel, Panama, and Andorra to keep their wealth hidden from the U.S. government.
This scheme was not a simple mistake or misunderstanding. Rosenberg and her relatives deliberately set up accounts in different names, used fake documents, and failed to report their earnings, even though they knew it was illegal.
From as early as the 1970s, Rosenberg’s family had offshore bank accounts. By the late 1990s, they were aware they were required to report these accounts but chose not to. Instead, they transferred their assets between different banks to keep them hidden from the IRS.
How the Family Kept Their Wealth Hidden
At first, the family kept their money in various banks across different countries. In the early 2000s, they decided to move most of their assets to Credit Suisse, a well-known bank in Switzerland and the United Kingdom. They even told the bank employees that they were U.S. citizens but wanted to keep their money hidden from American tax authorities.
Matthew A. Akande’s Alleged Tax Scam Leads to U.S. Extradition
Things changed in 2013 when Credit Suisse closed their accounts because the family members were U.S. persons. Instead of following the law and reporting their assets, the family decided to move their money to other banks. They transferred their funds to Bank Leumi in Israel, Union Bancaire Privée (UBP) and PKB Privat Bank SA in Switzerland, and an Andorran bank. To cover their tracks, Rosenberg signed false documents claiming she was a resident of Colombia instead of a U.S. citizen.
Riskpro’s Tax Certification: In talks with Sharad P Joshi
Not only did they fail to report these accounts, but they also continued to file false tax returns. They left out millions of dollars in income earned from these offshore accounts. By doing this, they avoided paying taxes they legally owed to the U.S. government.
Fake Gifts, Loans, and False Documents to Cover Up Crimes
Rosenberg and her family did not stop even when the pressure to disclose foreign accounts increased. In 2017, they tried a new trick. They made it look like they had gifted their foreign assets to a family member who had renounced U.S. citizenship. By doing this, they hoped to keep their money safe from U.S. tax authorities.
To further hide their financial activities, they secretly transferred money back to the U.S. To make it seem legal, they created fake loan agreements and business investment documents. This made it look like the money transfers were legitimate, but in reality, they were part of an effort to keep their financial secrets hidden.
Legal Consequences and Investigation
Between 2010 and 2017, Rosenberg filed tax returns that left out more than $5.5 million in income she had earned. This resulted in a tax loss of nearly $2 million to the IRS.
Joseth Limon Indicted for Serious Employment Tax Crimes in Houston
Rosenberg is now facing serious legal consequences. She pleaded guilty to the charges and is scheduled for sentencing on May 30. She could face up to five years in prison, along with additional penalties, restitution, and supervised release.
In addition to this case, Rosenberg had previously pleaded guilty in another court to a different crime involving fraud against the U.S. Army and Air Force Exchange Service (AAFES). She was involved in filing false reports to avoid paying the full amount of money required under a contract.
Authorities say that the IRS Criminal Investigation’s International Tax & Financial Crimes Unit played a key role in uncovering this scheme. The Justice Department’s Office of International Affairs also provided crucial help in gathering important evidence.
Federal prosecutors are handling the case, ensuring that those involved in financial crimes are held accountable. This case serves as a reminder that no matter how well-hidden money may seem, tax evasion can have serious consequences.
