James F. McDonough
Of Counsel
732-568-8360 jmcdonough@sh-law.comFirm Insights
Israeli Banks May Be Target of U.S. Tax Evasion Case
Author: James F. McDonough
Date: March 11, 2013
Key Contacts
Back
The U.S. has entered into agreements with several countries to help curb the incidence of tax law violations on the part of Americans. While many foreign banks have admitted to facilitating Americans in hiding income, the U.S. government may soon set its sights on two Israeli banks for complicity in tax evasion.
Zvi Sperling, an American, is facing charges from federal prosecutors for hiding taxable income in offshore accounts in Israel. During Sperling’s guilty plea, he noted that he had conspired with workers at Mizrahi Tefahot Bank – or Bank A, in the court documents – and Bank Leumi Le-Israel – or Bank B – to hide income from the IRS, according to Bloomberg. A representative at Leumi declined to comment on the specifics of the case, but no Israeli banks have yet been charged.
“The bank has a long-standing policy of not discussing customer relationships,” Orit Reuveni, a spokeswoman for Bank Leumi, told Bloomberg in an email. “We have previously stated that we are among the international banks within the scope of a U.S. inquiry into tax matters involving U.S. customers.”
Sperling, who co-owns a business with his brother, failed to disclose his offshore assets between 2003 and 2010, Bloomberg reports. According to court documents, he set up back-to-back loans between the banks and created an offshore account with the sole intent of hiding income and making it difficult for U.S. authorities to detect the income, Sperling said in his plea agreement. The news source notes that Sperling held roughly $4 million in his offshore account, the amount and interest earnings of which he never reported.
No charges have yet been brought against the two banks, but federal authorities have no ruled out a case.
- Practices: Tax, Trusts & Estates
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Israeli Banks May Be Target of U.S. Tax Evasion Case
Author: James F. McDonough
The U.S. has entered into agreements with several countries to help curb the incidence of tax law violations on the part of Americans. While many foreign banks have admitted to facilitating Americans in hiding income, the U.S. government may soon set its sights on two Israeli banks for complicity in tax evasion.
Zvi Sperling, an American, is facing charges from federal prosecutors for hiding taxable income in offshore accounts in Israel. During Sperling’s guilty plea, he noted that he had conspired with workers at Mizrahi Tefahot Bank – or Bank A, in the court documents – and Bank Leumi Le-Israel – or Bank B – to hide income from the IRS, according to Bloomberg. A representative at Leumi declined to comment on the specifics of the case, but no Israeli banks have yet been charged.
“The bank has a long-standing policy of not discussing customer relationships,” Orit Reuveni, a spokeswoman for Bank Leumi, told Bloomberg in an email. “We have previously stated that we are among the international banks within the scope of a U.S. inquiry into tax matters involving U.S. customers.”
Sperling, who co-owns a business with his brother, failed to disclose his offshore assets between 2003 and 2010, Bloomberg reports. According to court documents, he set up back-to-back loans between the banks and created an offshore account with the sole intent of hiding income and making it difficult for U.S. authorities to detect the income, Sperling said in his plea agreement. The news source notes that Sperling held roughly $4 million in his offshore account, the amount and interest earnings of which he never reported.
No charges have yet been brought against the two banks, but federal authorities have no ruled out a case.