Thursday, April 7, 2011

HSBC Targeted in Offshore Banking Juggernaut - John Doe Order Granted!!! (4/7/11)

The IRS has issued a "John Doe" Summons with the U.S. District Court in SF, according to a DOJ news release here.  Readers will remember that this was an opening salvo in the spat with UBS that led to a deferred prosecution agreement, $780 million  payment to the U.S., and the turn over of a bunch -- 4,500 -- names.  It is uglier and likely to get uglier for HSBC.  And how about the other banks?

Just curious because I was thinking about it today.  Why doesn't DOJ just get a John Doe grand jury subpoena and cut to the quick?

Update 4/8/11:  The order allowing the John Doe Summons was granted (see here).  (Editorial comment: I hope none of my readers are surprised.)
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