U.S. Reaches $550 Million Settlement with Julius Baer After Former Bankers Plead Guilty

By Colby Adams

Julius Baer on Thursday agreed to pay nearly $550 million to defer a U.S. tax-evasion prosecution, hours after two of the Swiss private bank's former wealth managers pleaded guilty to planning the conspiracy. Manhattan federal prosecutors Thursday evening said that, after more than four years on the run, Swiss residents Daniela Casadei and Fabio Frazzetto voluntarily appeared in court to admit to helping Americans open secret accounts at Julius Baer through the use of code names and numbers, shell companies, relatives and third-party asset managers. According to their 2011 indictments, Casadei and Frazzetto made purchases in cash to obscure their...