This week the Swiss Mirabaud & Cie. The bank faces new questions from a powerful U.S. legislator about not recognizing the origin of the $ 1 billion deposited on behalf of Brockman, Bloomberg reports.
U.S. Sen. Ron Wyden, chairman of the Senate Finance Committee, on Wednesday asked the bank’s U.S. attorney to explain what steps it took to uncover the source of the tax-free money. Swiss prosecutors froze about $ 950 million related to Brockman after he was indicted in October 2020.
The United States alleges that Brockman concealed his control over the money in Mirabaud by hiding behind candidate accounts and false paper traces created by Evatt Tamine, a lawyer who collaborates with federal authorities. Wyden’s request to expand his original investigation in September when the bank said Brockman had concealed ownership of his funds.
Tamine, who was not charged with the crime, testified on Wednesday as a prosecutor’s witness at Brockman’s qualification hearing.
Wyden’s letter stated that it was “critical to understand what information the bank requested from Mr. Tamie or other signatories in connection with the acquisition” and when large deposits were made, including one of $ 799 million in deposits in 2010. It was distributed to Vista Equity Partners. Brockman was the original investor and eventually offered at least $ 1 billion in capital.
“Did Mirabaud ever ask for information about the source of the assets of this deposit or the source of the funds?” Wyden asked.
Wyden asked about the bank’s due diligence process and “know your customer” procedures to determine who ultimately owns the accounts.
A bank spokesman said Wednesday that the allegations made it clear that “Brockman made a great deal of effort to deceive Mirabaud into his actual involvement in the accounts,” which were not held in his name.
According to the spokesperson, Mirabaud has complied with all requests for information on U.S. treaties in the Brockman investigation, as well as the Foreign Account Tax Compliance Act, which requires foreign financial institutions to report funds held by U.S. account holders.
In response to a previous question from Wyden, the bank’s attorney wrote on Oct. 1 that prior to the indictment, it was unaware of Brockman’s role, had no contact with him, and “could not verify or request any information from him.”
Bloomberg participated in this report.