Filed SDNY Casadei and Frazzetto Indictment

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK - - - - - - - - - - - - - - - - x

UNITED STATES OF AMERICA

- v. -INDICTMENT

11 Cr. DANIELA CASADEI and FABIO FRAZZETTO, 11 CR

Defendants. x

COUNT ONE (Conspiracy)

The Grand Jury charges:

The Defendants and Their Bank

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1. At all times relevant to this Indictment, Swiss

Bank No. 1 provided private banking, asset management, and ,other;.

services to individuals and entities around the world, including

U.S. taxpayers in the Southern District of New York. Until in or

about 2008, Swiss Bank No. 1 maintained an office ~n the Southern

District of New York.

2. From at least in or about the early 1990s, up

through at least in or about 2010, DANIELA CASADEI, the

defendant, worked at Swiss Bank No. 1 as a client advisor to

various individuals, including U.S. taxpayers who maintained

accounts at Swiss Bank NO.1.

3. From at least in or about 2005, up through at

least in or about 2010, FABIO FRAZZETTO, the defendant, worked at

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Swiss Bank No. 1 as a client advisor to various individuals r

including U.S. taxpayers who maintained accounts at Swiss Bank

NO.1. Obligations of U.S. Taxpayers

With Respect to Foreign Financial Accounts

4. At all times relevant to this Indictment r

citizens and residents of the United States who had income in any

one calendar year in excess of a threshold amount ("U.S.

taxpayersll) were required to file a U.S. Individual Income Tax

Return r Form 1040 ("Form 1040 1l )r for that calendar year with the

Internal Revenue Service ("IRSII). On Form 1040 r U.S. taxpayers

were obligated to report their worldwide income r including income

earned in foreign bank accounts. In addition r when a U.S.

taxpayer completed Schedule B of Form 1040 r he or she was

required to indicate whether "at any time during [the relevant

calendar year] II the filer had "an interest in or a signature~or

other authority over a financial account in a foreign countrYr

such as a bank account r securities account, or other financial

account rll and if SOr the U.S. taxpayer was required to name the

country.

5. In addition r U.S. taxpayers who had a financial

interest inr or signature or other authority over a foreign bank

account with an aggregate value of more than $10 r OOO at any time

during a particular calendar year were required to file with the

IRS a Report of Foreign Bank and Financial Accounts r Form TD F

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90-22.1 ("FBAR") on or before June 30 of the following year. In

general, the FBAR required that the U.S. taxpayer filing the.form

identify the financial institution with which the financial

account was held, the type of account (either bank, securities,

or other), the account number, and the maximum value of the

account during the calendar year for which the FBAR was being

filed. Overview of the Conspiracy

6. From at least in or about the 1990s up through and

including in or about 2010, more than 180 U.S. taxpayer-clients

of Swiss Bank No. 1 conspired with, at various times, DANIELA

CASADEI and FABIO FRAZZETTO, the defendants, and others known and

unknown, including other client advisors at Swiss Bank No.1, to

defraud the United States, to conceal from the IRS on false tax

returns and otherwise the existence of bank accounts maintained

at Swiss Bank No.1, and. the income earned in these accounts'

(hereafter "the undeclared accounts"), and to evade U.S. taxes on

income generated in those accounts. CASADEI, FRAZZETTO and other

client advisors at Swiss .Bank No. 1 conspired with U.S. taxpayer

clients to hide at least $600,000,000 in assets from the IRS at

Swiss Bank No.1, and CASADEI and FRAZZETTO managed undeclared

U.S. taxpayer assets worth at least $13,200,000 and $20,500,000

respectively. In furtherance of the conspiracy, CASADEI and

FRAZZETTO, among other things, advised and helped U.S. taxpayer

clients open and maintain undeclared accounts in code names or in

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the names of non-U.S. relatives or.sham corporate entities;

ensured that mail relating to those accounts was not sent to U.S.

taxpayer-clients in the United States; caused U.S. taxpayer

clients to travel to Switzerland to conduct business relating to

the undeclared accounts; traveled to the United States to meet

with U.S. taxpayers; and, in or about 2008 and 2009, assured U.S.

taxpayer-clients not to worry about the undeclared accounts being

discovered by the IRS or U.S. law enforcement authorities

because, CASADEI and FRAZZETTO advised, un,like UBS AG - another

Swiss bank that was being investigated by U.S. authorities for

engaging in similar practices - Swiss Bank No. 1 did not have an

office in the United States and the accounts would therefore

remain secret.

Means and Methods of the Conspiracy

7. Among the means and methods by which DANIELA

CASADEI and FABIO FRAZZETTO, the defendants, and their

co-conspirators carried out the conspiracy were the following:

a. CASADEI, FRAZZETTO and other Swiss Bank No. 1

client advisors opened and managed for certain U.S. taxpayers

bank and securities accounts at Swiss Bank No. 1 that were not

reported to the IRS on Forms 1040, FBARs, or otherwise, and the

income from which was also not reported to the IRS.

b. CASADEI, FRAZZETTO and other Swiss Bank No. 1

client advisors permitted certain U.S. taxpayers to open

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undeclared accounts using code names or numbers so that the U.S.

taxpayers could sign their code names or numbers on bank

documents, rather than use their usual signatures, and otherwise

ensure that the U.S. taxpayers' names would appear on the fewest

possible documents relating to their accounts.

c. FRAZZETTO permitted certain u.s. taxpayer

clients to place assets in undeclared accounts held in the name

of foreign relatives in order to conceal the U.S. taxpayer

clients' beneficial ownership of such assets.

d. FRAZZETTO permitted a U.S. taxpayer-client to

maintain an undeclared account at Swiss Bank No. 1 held in the

name of a sham corporate entity, and CASADEI advised a U.S.

taxpayer-client that the client could maintain his undeclared

account at Swiss Bank No. 1 if he placed his account in the name

of a sham corporate entity.

e. CASADEI, FRAZZETTO and other Swiss Bank No. 1

client advisors ensured that account statements and other records

relating to undeclared accounts held at Swiss Bank No. 1 by U.S.

taxpayer-clients were not sent to their U.S. taxpayer-clients in

the United States.

f. CASADEI, FRAZZETTO and other Swiss Bank No.1

client advisors caused U.S. taxpayer-clients with undeclared

accounts at Swiss Bank No. 1 to travel from the United States to

Switzerland in order to discuss their undeclared accounts.

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g. FRAZZETTO traveled to the Southern District

of New York to review account information with certain U.S.

taxpayer-clients with undeclared accounts at Swiss Bank NO.1.

h. Various U.S. taxpayer-clients of CASADEI,

FRAZZETTO and other Swiss Bank No. 1 client advisors filed false

Forms 1040 that failed to report their interest in, and income

earned from, their undeclared Swiss Bank No. 1 accounts; evaded

income taxes due and owing; and failed to file FBARs identifying

their undeclared accounts.

A. Undeclared Accounts Opened or Managed by DANIELA CASADEI

8. From at least in or about the early 1990s up to in

or about 2010, DANIELA CASADEI, the defendant, in her capacity as

a client advisor at Swiss Bank No.1, opened new undeclared

accounts, or managed previously-opened undeclared accounts, for

at least seventeen U.S. taxpayer-clients hiding at least

$13,241,446 in total from the IRS at Swiss Bank NO.1. CASADEI's

U.S. taxpayer-clients included, among others, Clients 1 through

6, described below.

Client 1

9. At all times relevant to this Indictment, Client 1

was a U.S. citizen and resident of the United States. By in or

about the early 1990s, Client l's father had an undeclared

account at Swiss Bank No.1 (the "Account"). In or about the

early 1990s, Client 1 and Client l's father traveled to the

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zurich office of Swiss Bank No. 1 and met with DANIELA CASADEI,

the defendant, to sign documents that gave Client 1 signature

authority over the Account. Client 1 provided CASADEI a copy of

his U.S. passport during the meeting. CASADEI provided account

statements to Client 1 and Client l's father. CASADEI referred

to these statements as "traveling, statements" because they

contained no client-identifying information on them.

10. On or about February 4, 1999, Client l's father

died and Client 1 traveled to Swiss Bank No. 1 in Zurich and met

with DANIELA CASADEI, the defendant. At Client l's instruction,

CASADEI transferred Client l's inherited assets from the Account

to a new account held jointly by Client 1 and Client l's wife

(the "New Account"). The New Account was given a code number

separate and apart from the account number so as to ensure that

Client l's name appeared on as few documents as possible.

11. In or about April 2008, Client 1 traveled to Swiss

Bank No. 1 in Zurich and met with DANIELA CASADEI, the defendant,

and a director of Swiss Bank No. l's private banking department

(the "Director") to discuss news reports regarding the United

States Department of Justice's ("DOJ") investigation into the

cross-border banking business of UBS GA ("UBS"). At or about

that time, DOJ's investigation of UBS's cross-border banking

business became publicly known and received widespread media

coverage in Switzerland and the United States. In this meeting,

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CASADEI and the Director told Client 1 that Swiss Bank No. 1 no

longer had a presence in the United States, and was therefore

different from UBS and immune from the issues relating to UBS and

the U.S. government.

12. As of in or about 2007, Client l's undeclared

Swiss Bank No.1 account held approximately $839,678.

13. On Client l's Forms 1040 for at least the calendar

. years 2003 through and including 2008, Client 1 did not report

either Client l's interest in or signature or other authority

over Client l's account at Swiss Bank No.1. Moreover, for at

least the calendar years 2003 through and including 2008, Client

1 did not file an FBAR disclosing Client l's account at Swiss

Bank No.1.

Client 2

14. At all times relevant to this Indictment, Client 2

was a U.S. citizen and resident of the United States. Before the

mid-to-late 1990s, Client 2's father opened an undeclared account

at Swiss Bank No.1 (the "Father's Account"). In or about the

mid-to-late 1990s, Client 2 and Client 2's father traveled to

Swiss Bank No. 1 in Zurich and met with the client advisor

("Client Advisor I") for Client 2's father. Client Advisor 1

opened an account for Client 2 ("Client 2's First Account") so

that certain funds from the Father's Account could be transferred

into Client 2's First Account. Client 2 provided her U.S.

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passport to Client Advisor 1 during the meeting.

15. In or about 1999, Client 2's father died. Shortly

before Client 2's father died, additional funds in the Father's

Account were transferred into Client 2's First Account.

16. In or about 2001, Client 2 traveled to Swiss Bank

No. 1 in Zurich and met with her new client advisor, Client

Advisor 2 ("Client Advisor 2"). During this meeting, Client

Advisor 2 recommended that Client 2 open another account using a

"fantasy," or code, name so that Client 2 would have an

additional layer of privacy and protection from the U.S.

government and Client 2's husband, whom at the time Client 2 was

in the process of divorcing. During this meeting, Client Advisor

2 opened a new undisclosed account for Client 2 using the code

name "Hydrangea" ("the Hydrangea Account") .

17. In or about 2003, Client 2 traveled to Zurich and

met with Client Advisor 2. Client Advisor 2 helped Client 2

establish another undeclared account at another Swiss bank, Swiss

Bank No.2 ("the Swiss Bank No.2 Account"), and transfer the

funds from the Hydrangea Account into the Swiss Bank No. 2

Account. During that same trip, Client Advisor 2 renamed Client

2's First Account at Swiss Bank No.1 with the code name "Red

Rubin" (hereafter, "the Red Rubin Account"). Client Advisor 2

referred to "Red Rubin" as a "fantasy name."

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18. By in or about 2005, Client Advisor 2 had

become employed by UBS in Zurich. In or about 2005, Client 2 met

with Client Advisor 2 at a UBS office in Zurich to open a new

undeclared account ("the UBS Account") and transfer the funds in

the Swiss Bank No. 2 Account into the UBS account.


No.1 in Zurich and met with Client 2's new client advisor,

DANIELA CASADEI, the defendant. CASADEI referred to the name of

the Red Rubin Account as a "fantasy" name.

20. In or about the summer of 2008, Client 2 traveled

to Zurich and met with DANIELA CASADEI, the defendant, to discuss

transferring the funds in the UBS Account into the Red Rubin

Account. CASADEI approved the request and advised Client 2 to

open a new account using a new fantasy name and to close the Red

Rubin Account. CASADEI then set up a new undeclared account for

Client 2 at Swiss Bank No. 1 under the name "Conto Green-White

House" ("the Green White House Account") .

21. At the end of 2008, as global stock markets were

declining, Client 2 called DANIELA CASADEI, the defendant, from

the United States and asked for advice concerning her investment

portfolio within the Green White House Account. CASADEI advised

that Client 2 would have to travel to Zurich to discuss the

account. After the call, Client 2 traveled to Zurich and met

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with CASADEI. At that meeting, CASADEI advised Client 2 to "wait

it out," and not liquidate her investments because of the

downturn. Client 2 followed this investment advice.

22. In or around March 2009, Client 2 again called

DANIELA CASADEI, the defendant, from the United states with

concerns about the market. CASADEI told Client 2 that Client 2

could either "cash out the account," that is, to sell ~ll the

securities in the account for cash, or leave it alone. Client 2

instructed CASADEI to cash out the account, and CASADEI

thereafter did so.

23. As of in or about 2008, Client 2's Green White

House Account at Swiss Bank No.1 held approximately $850,285.

24. On Client 2~s Forms 1040 for at least the calendar

years 2003 through and including 2008, Client 2 did not report

either her interest in or signature or other authority over her

accounts at Swiss Bank No.1. Moreover, for at least the

calendar years 2003 through and including 2008, Client 2 did not

file an FBAR disclosing her accounts at Swiss Bank No.1.

Client 3

25. At all times relevant to the Indictment, Client 3

was a German citizen who was a lawful permanent resident of the

United States and, therefore, a U.S. taxpayer. In or about 1979,

Client 3 traveled to Swiss Bank No. 1 in Zurich and met with a

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client advisor to open an account. Client 3 indicated to the

client advisor that he resided in New Jersey in the United

States. The account was opened under a code name, "Conto

Xenopuslaevis." Whenever Client 3 traveled to Switzerland to

visit Swiss Bank No. 1 and inquire about his account, Client 3

signed in upon entering Swiss Bank No. 1 using this code name.

26. In or about September 2008, Client 3 learned about

the DOJ investigation of UBS. Client 3 traveled to Swiss Bank

No. 1 in Zurich and met with DANIELA CASADEI, the defendant, who

was now Client 3's client advisor. Client 3 asked CASADEI if

Swiss Bank No. 1 was susceptible to the same investigative

inquiries facing UBS, and CASADEI told Client 3 not to worry.

27. As of in or about 2008, Client 3's undeclared


28. On Client 3's Forms 1040 for at least the calendar


either his interest in or signature or other authority over his

account at Swiss Bank NO.1. Moreover, for at least the calendar

years 2003 through and including 2008, Client 3 did not file an

FBAR disclosing his account at Swiss Bank NO.1.

Client 4


was a U.S. citizen who resided in South Carolina. In or about

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the late 1970s, Client 4 traveled to Swiss Bank No. l's then

existing office in Manhattan and met with a client advisor for

Swiss Bank No. 1 to open an undeclared account. In this meeting,

the client advisor explained that he would transfer the funds to

Swiss Bank No. l's office in Zurich, Switzerland where Client 4's

account would be maintained.

30. In or about November 2009, DANIELA CASADEI, the

defendant, who by that time was Client 4's client advisor, called

Client 4 in the United States. CASADEI mentioned on the call

that CASADEI had been trying to reach Client 4 for some time but

did not want to leave a message. CASADEI told Client 4 that he

had to travel to Swiss Bank No., 1 in Zurich to close the account

because the United States was applying too much pressure on Swiss

banks for maintaining undeclared accounts for U.S. taxpayers.

However, CASADEI also stated that Client 4 could continue to

maintain an account at Swiss Bank No. 1 by retaining a third

party financial advisor to manage an account for Client 4 at

Swiss Bank No.1. CASADEI explained that these third party

financial advisors were former employees of Swiss Bank No. 1 who

had left Swiss Bank No. 1 to set up their own investment firms,

and Client 4 would be charged a fee for this service. During a

telephone call to Client 4 in the United States, CASADEI provided

Client 4 with a list of names of independent financial advisors.

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account at Swiss Bank No.1. Moreover, for at least the calendar


FBAR disclosing Client 4's account at Swiss Bank No.1.

Client 5


was a U.S. citizen who resided in the United States. In or

about 1992, Client 5 traveled to Swiss Bank No. 1 in Zurich and

met with DANIELA CASADEI, the defendant. In this meeting, Client

5 told CASADEI that he wanted to open an account at Swiss Bank

No. 1 and that he would transfer funds from an account he owned

at a bank in London. Client 5 told CASADEI that he resided in

the United States.

34. Between in or about 1992 and 2009, on several

occasions Client 5 communicated from the United States with

DANIELA CASADEI, the defendant, both over the telephone and

through written communication mailed by CASADEI from a post

office box in Zurich to Client 5 in the United States.

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Swiss Bank No.1 account held approximately $2,571,966.




account at Swiss Bank No.1. Moreover, for at least the calendar


FBAR disclosing his account at Swiss Bank NO.1.

Client 6


was a U.S. citizen who resided in the United States. In or about

2000 or 2001, Client 6's husband inherited an account at Swiss

Bank No.1. In or about 2001 or 2002, Client 6 and her husband

traveled to Swiss Bank No. 1 in Zurich and met with DANIELA

CASADEI, the defendant, who was the client advisor for Client 6's

husband. The purpose of the meeting was to make Client 6 a joint

owner of the account. The account was undeclared.

38. In or about March 2003, Client 6's husband died

and Client 6 moved to a new residence. Client 6 contacted

DANIELA CASADEI, the defendant, from the United States by phone

and provided Client 6's new address in Raleigh, North Carolina.

39. In or about October 2003, Client 6 called DANIELA

CASADEI, the defendant, from Client 6's residence in the United

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States to schedule an appointment at Swiss Bank No. 1 in Zurich.

CASADEI accepted the call and scheduled the appointment. Client

6 then traveled to Zurich and converted the undeclared account

from a jointly held account to an account held in Client 6's name

alone.


Swiss Bank No.1 account held approximately $1,801,984.



either her interest in or signature or other authority over her

account at Swiss Bank NO.1. Moreover, for at least the calendar


FBAR disclosing her account at Swiss Bank No.1.

42. Clients 1 through 6 of DANIELA CASADEI, the

defendant, are described in the following table:

Beneficial Code Name (s) or Approximate Date Approximate High Owner(s) Nominee Name(s) Swiss Bank No. 1 Value of Swiss

in which Swiss Account(s) Opened Bank No. 1 Bank No. 1 Accounts Account(s) Held

Client 1 Code Number 1999 $8.39,678

Client 2 Hydrangea/Red 1990s $850,285 Rubin/Conto Green-White-House

Client 3 Conto 1979 $350,000 Xenopuslaevis

Client 4 1970s $518,241

Client 5 1992 $2,571,966

Client 6 Unknown $1,801,984

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B. Undeclared Accounts Opened or Managed by FABIO FRAZZETTO

43. From in or about 2005 to in or about 2010, FABIO

FRAZZETTO, the defendant, in his capacity as a client-advisor at

Swiss Bank No.1, opened new undeclared accounts or managed

previously-opened but undeclared accounts for at

least twelve U.S. taxpayer-clients hiding at least approximately

$20,585,774 in total from the IRS at Swiss Bank No.1.

FRAZZETTO's U.S. taxpayer-clients included, among others, Clients

7 through 15, described below.

Clients 7-10

44. At all times relevant to this Indictment, Client

7, and her daughters, Client 8, Client 9, and Client 10

(collectively, the "Daughters"), were U.S. citizens and residents

of the United States. In or about 1975, Client 7's husband

established an undeclared account at a predecessor bank of Swiss

Bank No.1. In or about 1995, Client 7's husband died and Client

7 inherited the account.

45. In or about 2006, Client 7 and the Daughters

traveled to Swiss Bank No. 1 in Zurich and met with FABIO

FRAZZETTO, the defendant, who was Client 7's client advisor. In

this meeting, Client 7 told FRAZZETTO that she wanted to close

her existing account at Swiss Bank No. 1 and open three separate

joint accounts, one for each of the Daughters. At Client 7's

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direction, the funds in Client 7's account were divided roughly

equally among the three new accounts.

46. The accounts were established, and, on certain

account opening documents ("Form A") for the newly-created

accounts, Clients 7, 8, 9, and 10 each indicated that they

resided in the United States and that they were U.S. citizens.

The account opening documents also included mail hold agreements

instructing Swiss Bank No. 1 to hold all communications from

Swiss Bank No.1 for Clients 7, 8, 9, and 10 at Swiss Bank No.1

instead of sending them by mail. FABIO FRAZZETTO, the defendant,

signed these agreements.

47. In or about the fall of 2006, Client 8 traveled to

Swiss Bank No. 1 in Zurich and met with FABIO FRAZZETTO, the

defendant. In this meeting, FRAZZETTO recommended that Client 8

get a debit card from Swiss Bank No. 1 in order for Client 8 to

have easier access to Client 8's funds. FRAZZETTO further

advised Client 8 that she could only use the debit card in

Europe, and that Client 8 should not use it in the United States.

48. At various times, including in or about October

2006 and September 2007, FABIO FRAZZETTO, the defendant, traveled

to hotels in Manhattan and met with Client 7, who was accompanied

during these visits by either Client 8 or Client 10. During

these trips, FRAZZETTO sometimes reviewed account statements with

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Client 7, and specifically noted to Client 7 that the statements

did not have Client 7's name on them because FRAZZETTO did not

want any documents identifying Client 7.

49. In or about 2008 or 2009, Client 9


FRAZZETTO, the defendant. Client 9 had become aware of the DOJ

investigation into UBS and asked FRAZZETTO how the investigation

of UBS would impact Swiss Bank No.1. FRAZZETTO told Client 9

that Swiss Bank No. 1 was accepting new U.S. clients and that

Swiss Bank No. 1 was not exposed to investigation like UBS

because Swiss Bank No. 1 did not have a presence in the United

States.

50. In or about the spring or summer of 2009, Client 7

and Client 8 traveled to Swiss Bank No. 1 in Switzerland and met

with FABIO FRAZZETTO, the defendant. FRAZZETTO advised that some

U.S. clients of Swiss Bank No. 1 were moving assets from their

undeclared accounts into new accounts held in the name of foreign

relatives in order to further conceal the U.S. clients' assets.

51. In or about July and August of 2009, Client 8


FRAZZETTO, the defendant. Client 8 discussed the IRS voluntary

disclosure program with FRAZZETTO and told FRAZZETTO that Client

8 would bring the disclosure paperwork with her to Zurich so

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FRAZZETTO could review the documents. FRAZZETTO told Client 8 it

was "unwise" to carry the paperwork with her to Zurich and

instructed Client 8 not to do it. FRAZZETTO mentioned a law firm

that could assist Client 8 in making a voluntary disclosure to

the IRS I but FRAZZETTO discouraged Client 8 from making a

disclosure. FRAZZETTO told Client 8 not to panic.

52. In or about August 2009 1 the Daughters traveled to

Swiss Bank No. 1 in Zurich and had two separate meetings with

FABIO FRAZZETTO I the defendant.

a. In the first meeting l the Daughters told

FRAZZETTO that Client lOIs husband had an Israeli cousin ("the

Cousin") I who could become the new nominee account holder for

funds in the Daughters I existing joint accounts. FRAZZETTO made

it clear that I as far as Swiss Bank No. 1 was concerned l the

Cousin would now legally own the moneYI and the Daughters would

have to go through the Cousin for withdrawals or any other type

of transaction.

b. The next daYI the Daughters brought the

Cousin to the office of Swiss Bank No. 1 to meet with FRAZZETTO.

In this second meeting l FRAZZETTO interviewed the Cousin and

asked the Cousin questions about the Cousin/s background and

place of residence. FRAZZETTO made a copy of the Cousin/s

Israeli passport. FRAZZETTO instructed the Cousin to complete

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the account opening documents. FRAZZETTO also instructed the

Daughters to complete documents to close their accounts so the

transfer of funds into the nominee account opened under the

Cousin's name could be executed. The nominee account was opened

and the funds were transferred.

53. In or about 2006, the joint account held by Client

7 and Client 8 at Swiss Bank No.1 held approximately $1,008,431.


7 and Client 9 at Swiss Bank No.1 held approximately $1,056,110.


7 and Client 10 at Swiss Bank No. 1 held approximately

$1,048,005.


years 2003 through and including 2008, and on the Daughters'

Forms 1040 for at least the calendar years 2006 through and

including 2008, they did not report either their interest in or

signature or other authority over their accounts at Swiss Bank

No.1. Moreover, Client 7, for at least the calendar years 2003

through and including 2008, and the Daughters, for at least the

calendar years 2006 through and including 2008, did not file

FBARs disclosing their accounts at Swiss Bank No.1.

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Client 11

57. At all times relevant to this Indictment, Client

11 was a U.S. citizen and resident of the United States. In or

about October 2001, Client 11 traveled to Swiss Bank No. 1 in

Zurich and met with a client advisor. In this meeting, Client 11

provided Client II's U.S. passport and told the client advisor

that he wanted to open an account at Swiss Bank No.1. The

client advisor made a copy of Client II's U.S. passport. The

account was given a code number separate and apart from the

account number so as to ensure that Client II's name appeared on

as few documents as possible.

58. In or about 2005, Client 11 learned that FABIO

FRAZZETTO, the defendant, was Client II's new client- advisor.

Client 11 traveled to Swiss Bank No. 1 in Zurich and met with

FRAZZETTO to review the account. When Client 11 reviewed his

account statements in Zurich, FRAZZETTO recommended that Client

11 not take the statements with Client 11 or that Client 11

destroy the statements before returning to the United States.

FRAZZETTO advised Client 11 not to carry anything identifying

Swiss Bank No.1.

59. In or about 2008 or 2009, Client 11 learned about

the DOJ investigation into UBS from media reports. Client 11

called FABIO FRAZZETTO, the defendant, from the United States and

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asked how Swiss Bank No. 1 was going to prevent the disclosure td

the IRS of names of U.S. taxpayers with undeclared accounts at

Swiss Bank No.1. FRAZZETTO told Client 11 not to worry because

the Swiss government would not divulge any names.

60. In or about 2008, Client 11's undeclared account

at Swiss Bank No.1 held approximately $400,303.

61. On Client 11's Forms 1040 for at least the


repo'rt either his interest in or signature or other authority

over his account at Swiss Bank NO.1. Moreover, for at least the


file an FBAR disclosing his account at Swiss Bank No.1.

Clients 12 and 13


and Client 13, who are brothers, were U.S. citizens residing in

the United States. On or about December 31, 2002, the mother of

Client 12 and Client 13 died and Client 12 and Client 13 each

inherited fifty percent (50%) of the mother's undisclosed account

("the Inherited Account") at a predecessor bank in Switzerland

that subsequently became part of Swiss Bank NO.1.

63. In or about 2003, Client 12 traveled to a

predecessor bank to Swiss Bank No. 1 in Zurich and met with a

client advisor to close the Inherited Account and transfer Client

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12's share of funds in the Inherited Account into a new account

established for Client 12. A new account was opened for Client

13 as well. Client 12's account and Client 13's account were

given code numbers separate and apart from the account numbers so

as to ensure that Client 12's and Client 13's names appeared on

as few documents as possible.

64. In or about 2007 or 2008, Client 12 and Client 13

came to learn that FABIO FRAZZETTO, the defendant, was their new

client advisor at Swiss Bank NO.1. In or around this time,

Client 12 traveled to an office of Swiss Bank No. 1 in Zurich and

met with FRAZZETTO.

65. In or about 2007 or 2008, Client 13 and Client

13's cousin, who also had an undeclared account managed by FABIO

FRAZZETTO, the defendant, met with FRAZZETTO at a hotel in

midtown Manhattan. In this meeting, FRAZZETTO reviewed Client

13's account statements with Client 13; the statements did not

have Client 13's name on them.

66. In or about 2008 or 2009, Client 12 met with FABIO

FRAZZETTO, the defendant, at an office of Swiss Bank No. 1 in

Zurich. In this meeting, Client 12 discussed media reports of

the DOJ investigation into UBS. FRAZZETTO stated that Swiss Bank

No. 1 might close undeclared accounts held by U.S. clients, and

that the bank was currently deciding what to do. Also during

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that meeting, Client 12 informed FRAZZETTO that Client 12 was

either going to close or declare the account to the IRS.

FRAZZETTO informed Client 12 that if Client 12 declared the

account, a new account would have to be opened and Client 12

would need to complete a Form W-9.


account at Swiss Bank No.1 held approximately $265,136 and

Client 13's undeclared account at Swiss Bank No.1 held

approximately $211,873.

68. On Client 12's and Client 13's Forms 1040 for at

least the calendar years 2003 through and including 2008, Client

12 and Client 13 did not report either their interest in or

signature or other authority over their account at Swiss Bank No.

1. Moreover, for at least the calendar years 2003 through and

including 2008, Client 12 and Client 13 did not file FBARs

disclosing their accounts at Swiss Bank No.1.

Client 14


was a U.S. citizen residing in the United States. In or about

1999, Client 14 inherited an undeclared account originally

established by Client 14's father at a predecessor bank that

subsequently became part of Swiss Bank No.1. Client 14 used the

services of an independent Swiss asset manager (UAsset Manager

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1") to form a Liechtenstein foundation named Horsal. In turn,

Horsal owned another foreign entity named Herzen which nominally

held Client 14's account at the predecessor bank and then at

Swiss Bank No.1 beginning in 2004 ("the Herzen Account") .


No. 1 in Zurich and met with his client advisor, FABIO FRAZZETTO,

the defendant.

71. In or about 2009, Client 14, with the assistance

of Asset Manager I, moved the contents of the Herzen Account at

Swiss Bank No. 1 to an account at another Swiss bank.


account at Swiss Bank No.1 held approximately $4,880,666.



report either his interest in or signature or other authority

over his account at Swiss Bank NO.1. Moreover, for at least the


file an FBAR disclosing his account at Swiss Bank No.1.

Client 15


was a U.S. citizen who resided in the United States. In or about

1982, Client 15 inherited his father's account at a predecessor

bank to Swiss Bank No.1.

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75. In or about 2007, Client 15 learned that FABIO

FRAZZETTO, the defendant, was his new client advisor at Swiss

Bank No.1.

76. In or about June 2009, Client 15, while in

Switzerland, called FABIO FRAZZETTO, the defendant, to set up an

appointment to meet at Swiss Bank No. 1 in Zurich. FRAZZETTO was

not available, and DANIELA CASADEI, the defendant, spoke with

Client 15 and scheduled an appointment for Client 15 to meet at

Swiss Bank No.1.

77. Shortly thereafter, Client 15 met with DANIELA

CASADEI, the defendant, at Swiss Bank No.1. During that

meeting, CASADEI advised Client 15 that Swiss Bank No. 1 wanted

to stop doing business with u.S. persons. CASADEI further told

Client 15 that if he wanted to keep his undeclared account at

Swiss Bank No.1, Client 15 would have to agree to the formation

of a corporate-entity that would then become the account holder

of Client 15's undeclared account at Swiss Bank No.1.


account at Swiss Bank No.1 held approximately $595,434.



report either his interest in or signature or other authority

over his account at Swiss Bank No.1. Moreover, for at least the


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file an FBAR disclosing his account at Swiss Bank NO.1.

80. Clients 7 through 15 of FABIO FRAZZETTO, the

defendant, are described in the following table:

Beneficial Code Name (s) or Approximate Date Approximate High Owner(s) Nominee Name(s) Swiss Bank No. 1 Value of Swiss

in which Swiss Account(s) Opened Bank No. 1 Bank No. 1 Accounts Account(s) Held

Clients 7-10 The Cousin (in 1975 $3,112,546 2009)

Client 11 Code Number 2001 $400,303



Client 14 Herzen Unknown $4,880,666

Client 15 Unknown $595,434

81. In addition, DANIELA CASADEI and FABIO

FRAZZETTO, the defendants, conspired with one another, with

various other client advisors at Swiss Bank No.1, and with at

least 151 additional U.S. taxpayer-clients who maintained

undeclared accounts at Swiss Bank No.1, to hide at least an

additional $567,000,000 from the IRS at Swiss Bank No.1.

Statutory Allegations

82. From at least in or about the 1990s up through and

including in or about 2010, in the Southern District of New York

and elsewhere, DANIELA CASADEI and FABIO FRAZZETTO, the

defendants, together with others known and unknown, willfully and

knowingly did combine, conspire, confederate, and agree together

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and with each other to defraud the United states of America and

an agency thereof, to wit, the IRS, and to commit offenses

against the United States, to wit, violations of Title 26, United

States Code, Sections 7206(1) and 7201.

83. It was a part and an object of the conspiracy that

DANIELA CASADEI and FABIO FRAZZETTO, the defendants, together

with others known and unknown, willfully and knowingly would and

did defraud the United States of America and the IRS for the

purpose of impeding, impairing, obstructing, and defeating the

lawful governmental functions of the IRS in the ascertainment,

computation, assessment, and collection of revenue, to wit,

federal income taxes.

84. It was further a part and an object of the

conspiracy that various U.S. taxpayer-clients of DANIELA CASADEI

and FABIO FRAZZETTO, the defendants, together with others known

and unknown, willfully and knowingly would and did make and

subscribe returns, statements, and other documents, which

contained and were verified by written declarations that they

were made under the penalties of perjury, and which these U.S.

taxpayer-clients, together with others known and unknown, did not

believe to be true and correct as to every material matter, in

violation of Title 26, United States Code, Section 7206(1).

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85. It was further a part and an object of the

conspiracy that DANIELA CASADEI and FABIO FRAZZETTO, the

defendants, together with others known and unknown, willfully and

knowingly would and did attempt to evade and defeat a substantial

part of the income tax due and owing to the United States of

America by certain of Swiss Bank No. l's U.S. taxpayer clients,

in violation of Title 26, United States Code, Section 7201.

Overt Acts

86. In furtherance of the conspiracy and to effect the

illegal object thereof, DANIELA CASADEI and FABIO FRAZZETTO, the

defendants, and others known and unknown, committed the following

overt acts, among others, in the Southern District of New York

and elsewhere:

a. In or about the summer of 2008, CASADEI opened

a new undeclared account for Client 2 at Swiss Bank No. 1 under

the name "Conto Green-White-House."

b. In or about November 2009, CASADEI contacted

Client 4 in the United States and provided Client 4 with the

option of Client 4 keeping an undeclared account at Swiss Bank

No. 1 by using a third party financial advisor to manage Client

4's account at Swiss Bank No.1.

c. In or about October 2003, CASADEI spoke with

Client 6, who called from Client 6's residence in the United

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States, and scheduled an appointment for Client 6 to travel to

Zurich in order to convert Client 6's undeclared account from a

joint account to a single account.

d. In or about June 2009, CASADEI advised Client

15 that Client 15 could maintain an undeclared account at Swiss

Bank No. 1 if Client 15 agreed to the formation of a corporate

entity that would then become the account holder of Client 15's

undeclared account at Swiss Bank No.1.

e. In or about 2006, FRAZZETTO opened new

undeclared accounts for Client 7 and her daughters, Client 8,

Client 9, and Client 10, at Swiss Bank No 1.

f. In or about August 2009, FRAZZETTO opened a

new undeclared account in the name of the Cousin, an Israeli

citizen and resident, and transferred the assets of Client 7,

Client 8, Client 9, and Client 10 into that account in order to

further conceal those u.S. taxpayer-clients' financial interest

in those funds.

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g. In or about 2007 or 2008, FRAZZETTO met with

Client 13 at a hotel in Manhattan.

(Title 18, United States Code, Section 371.)

FOREPERSON PREET BHARARA United States Attorney

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Filed SDNY Casadei and Frazzetto Indictment

Documents

Transcript of Filed SDNY Casadei and Frazzetto Indictment