“It is our policy to start an internal investigation in cases of alleged misconduct by one of our employees, which we have done in this situation,” bank spokesman Schoenmaeckers said by phone.
Offshore Erosion
HSBC wants its private bank, which includes units in Switzerland, the U.K., Germany and Asia, to win new business by focusing on wealth created in emerging economies, onshore domestic markets and through referrals from within the firm. The traditional Swiss offshore private-banking model built on secrecy is disappearing, HSBC Holdings Chief Executive Officer Stuart Gulliver told investors in May.
Sethi admitted that from 2001 until 2009, he had undeclared accounts in Switzerland and India. His highest balance of $4.7 million was in 2007, when he sold a house in Watchung for $2.2 million, according to his information.
Sethi faces as many as five years in prison, and U.S. District Judge Jose Linares set his sentencing for April 18. Prosecutors said the total tax loss to the government was between $80,000 and $200,000.
The case is U.S. v. Sethi, U.S. District Court, District of New Jersey (Newark).