(Bloomberg) A father and son who ran a tax-preparation business were convicted in Los Angeles of conspiring to help clients cheat the Internal Revenue Service by setting up undeclared offshore bank accounts.
David Kalai, the founder and former chief executive officer of United Revenue Service, and his son Nadav, who was the company’s president, were found guilty last Friday by a federal jury, according to Thom Mrozek, a spokesman for the prosecutors.
The Kalais are among 38 bankers, lawyers and advisers charged since 2008 with using offshore accounts to help U.S. taxpayers cheat on their taxes. Of the 38, 25 have yet to answer the charges in court, and most live in Switzerland. Seven pleaded guilty, two were convicted at trial, two await trial and two were acquitted.
The U.S. said the David and Nadav Kalai set up accounts through Luxembourg offices of two Israeli banks, Bank Leumi Le-Israel Ltd. and Bank Hapoalim Ltd. A third man who was indicted with the Kalais, David Almog, is a fugitive. Prosecutors said they set up offshore companies in Belize and elsewhere to act as named account holders on the secret accounts.
The Kalais were convicted of conspiracy and failing to file Reports of Foreign Bank and Financial Accounts, or FBARs. Their sentencing is set for March 16.
The case is U.S. v. Kalai, 11-cr-00930, U.S. District Court, Central District of California (Los Angeles).
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