Tax-Evasion Probes Said to Slow

Justice Department has lost almost 30% of tax prosecutors, impeding U.S. crackdown on offshore banks.

The U.S. Justice Department has lost almost 30 percent of its tax prosecutors in the past month, slowing a U.S. crackdown on offshore banks that enabled tax evasion, according to four people familiar with the matter.

Twenty-five of the 95 prosecutors in the tax division left headquarters in Washington for six-month “details” with U.S. attorneys around the country, and another three took permanent assignments, according to the four people, who declined to be identified because they aren’t authorized to speak publicly.

Credit Suisse Probe

On July 15, Credit Suisse said it was a target of a criminal probe over former cross-border private-banking services for U.S. customers. Six days later, seven current and former Credit Suisse bankers were indicted on a charge of conspiring to help U.S. clients evade taxes through secret accounts. That case was led by prosecutors in the Eastern District of Virginia.

Senate Hearing

The subject arose at a March 20 hearing before the Senate Finance Committee’s economic growth and fiscal responsibility subcommittee, which examined identity theft and tax fraud.

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