S. Baravarian, a former banker from Israeli-based Mizrahi Tefahot Bank Ltd, was acquitted at Los Angeles Federal Court reports Bloomberg. Prosecutors claimed that he helped US clients hide assets from the IRS by opening account in Israel, but jurors cleared him.
The acquittal is a set back in the effort to clamp down on offshore tax evasion. Until now prosecutors have charged over 70 US tax-payers and a number of bankers, lawyers and advisers. While thanks to voluntary disclosure 45k US tax-payers avoided prosecution
This set back raises question in the outcome of future prosecutions against banker.
Raoul Weil, an ex-banker from UBS AG, is currently being hear in a tax conspiracy case in Florida.