WASHINGTON - Rolf Schnellmann, a former Swiss finance executive, has pled guilty in New York federal court to conspiring to defraud the U.S. in a tax evasion scheme known as the "Singapore Solution." The scheme involved hiding $60 million in income and assets belonging to wealthy American clients, prosecutors announced.

Schnellmann, 61, formerly the head of Zurich-based Allied Finance Trust AG, assisted in defrauding the Internal Revenue Service (IRS) by funneling money from U.S. taxpayer clients into undisclosed accounts at Privatbank IHAG Zurich AG, a private Swiss bank. These illicit activities took place between 2008 and 2014, as revealed by the Manhattan U.S. Attorney's Office.

Under the "Singapore Solution," Schnellmann and his accomplices transferred over $60 million from the secret accounts through multiple countries and Hong Kong, eventually reintroducing the funds into newly opened accounts at the same private bank. This was accomplished through a Singapore-based asset management firm established by one of Schnellmann's co-conspirators. The scheme allowed the wealthy clients to evade taxes owed to the IRS.

According to prosecutors, Schnellmann and his partners received substantial fees for their assistance in the tax evasion plot. In August, Schnellmann was arrested in Italy and subsequently extradited to the United States.

Schnellmann now faces a maximum sentence of five years in prison when he appears for sentencing on July 19.

The details of this case highlight the ongoing efforts by law enforcement agencies to combat offshore tax evasion and hold individuals accountable for their involvement in such fraudulent activities. The guilty plea by Schnellmann serves as a warning to those who attempt to hide income and evade taxes through complex offshore schemes.

The prosecution of tax evasion schemes is part of a broader crackdown on illicit financial practices that undermine tax systems and contribute to a loss of revenue for governments. Authorities are increasingly focused on tracing and recovering assets hidden in offshore accounts to ensure fair taxation.

The conviction of Rolf Schnellmann reinforces the message that individuals involved in tax evasion will face severe consequences for their actions. The case also emphasizes the importance of international cooperation in combating financial crimes, as demonstrated by Schnellmann's arrest and extradition from Italy.

As the legal procedures continue, law enforcement authorities remain vigilant in their pursuit of justice and the recovery of funds owed to the U.S. government. The outcome of this case will serve to deter others considering similar schemes and reaffirm the commitment of authorities to uphold the integrity of tax systems and protect public finances.