LOS ANGELES – A senior vice president at the Los Angeles branch of a bank headquartered in Tel Aviv was charged today with helping U.S. taxpayers hide secret Israeli bank account to dodge taxes, federal officials said.
Shokrollah Baravarian, of Beverly Hills, was charged in U.S. District Court with conspiracy to defraud the United States, the Justice Department and Internal Revenue Service, official said.
According to the indictment, Baravarian conspired to conceal the existence of undeclared accounts owned and controlled by U.S. customers in Israel.
The indictment alleges that these accounts were concealed from the IRS by opening them under pseudonyms, code names and the names of nominee entities set up in the British Virgin Islands and the island of Nevis.
“This charge results from an ongoing and extensive investigation into the use of undeclared bank accounts in Israel, and demonstrates the department’s determination to find and prosecute those who help U.S. taxpayers evade taxes through offshore accounts located anywhere in the world,” said Deputy Attorney General James M. Cole.
The indictment further alleges that Baravarian assisted U.S. customers in secretly accessing the funds in their undeclared accounts by obtaining back-to-back loans from the Los Angeles branch of the bank.
The indictment further alleges that a banker in Israel would periodically travel to Los Angeles and meet with U.S. customers to discuss their account statements. Prior to making these trips, the banker would redact the names of the U.S. customers reflected on the account statements.
If convicted, Baravarian is facing up to five years in prison and a maximum fine of $250,000.
Baravarian is presumed innocent until he is proven guilty.