According to the US Department of Justice (DoJ) Peter ‘Canale conspired with others – including Michael Canale, his brother, Beda Singenberger, a Swiss citizen who ran a financial advisory firm, and Hans Thomann, a Swiss citizen who served as a client adviser at UBS and certain Swiss asset management firms – to establish and maintain undeclared bank accounts in Switzerland and to hide those accounts from the IRS’.
Around 2000, a relative of Canale died and left substantial assets in an undeclared account to Peter and Michael Canale. They met with Hans Thomann and Beda Singenberger and determined they would continue to maintain the assets in the undeclared account for their benefits. In approximately 2005, Canale, with Singenberger’s assistance, opened at the now bankrupt Swiss bank Wegelin an account in the name of a sham foundation formed under the laws of Lichtenstein to conceal Canale’s ownership, report the DoJ. As of December 31, 2009, the account held assets of c.a. $789k.
For each of the calendar years from 2007 through 2010, Canale also failed to file a Report of Foreign Bank and Financial Accounts (FBAR) with the IRS.
Canale was arrested and is scheduled to be arraigned before US District Judge Katherine B. Forrest in Manhattan federal court on December 3, 2014, at 3PM. Canale faces a maximum sentence of five years in prison and a fine.