Another HSBC India unit client pleads guilty to offshore tax evasion

WASHINGTON: A client of HSBC Holdings Plc's India unit pleaded guilty to tax evasion on Wednesday, the latest case to potentially enmesh the UK bank in the expanding U.S. probe of banks that lure tax dodgers.

The plea by Josephine Bhasin before a magistrate judge in New York comes days after another HSBC client pleaded guilty, and a week after prosectors demanded potentially thousands more U.S. account names from HSBC.

Bhasin's account was worth as much as $8.3 million, the government said.

The Justice Department last week said HSBC in India helped U.S. taxpayers stash funds abroad through their India unit, and served a so-called John Doe summons on the bank to hand over U.S. client names.

The government used the same strategy when it went after UBS AG, which ultimately paid $780 million and agreed to hand over about 5,000 account holder names to settle. UBS also admitted it actively lured U.S. taxpayers with the promise of secrecy.

A HSBC spokeswoman said the company does not condone tax evasion and that it cooperates with government investigations.

Source: EconomicTimes