Cross Posted at Legal Schnauzer
Republicans have tried to make deficit reduction a major political issue, but they rarely discuss one reason the United States struggles to balance its books: Wealthy Americans get away with hiding huge amounts of taxable income in offshore accounts.
That might be about to change. A client of the British banking giant HSBC has pleaded guilty to conspiring to conceal accounts in India. Vaibhav Dahake, a native of India who now lives in Somerset, New Jersey, admitted to his role in a scheme that could wind up making some deep-pocketed Americans extremely uncomfortable.
We would not be surprised if this story winds up having Alabama connections. Bradley Arant, which claims to be our state's largest law firm, has represented HSBC affiliates.
With many Americans focusing on events in Wisconsin and a possible government shutdown, the feds' investigation of offshore accounts has floated under many radars. But it could become a story with widespread impact. It first surfaced in late January when Dahake was indicted on charges of conspiring to defraud the United States by hiding bank accounts in India and the British Virgin Islands.
How far might the story go? Reports The New York Times:
The defendant, Vaibhav Dahake, admitted in United States District Court in New Jersey to conspiring to conceal accounts in India.