A Miami man has admitted hiding over $20 million in Swiss bank accounts for decades, defrauding the US government of millions in taxes.
Dan Rotta pleaded guilty to conspiring to conceal his assets and income from the Internal Revenue Service (IRS).
Secret Swiss Accounts and Tax Evasion
Rotta used various methods to hide his wealth in a 35-year period from 1985 to 2020:
- He maintained secret accounts in five Swiss banks, including UBS, Credit Suisse, Bank Bonhôte, and Bank Julius Baer.
- He held accounts in his own name, in sham structures, and even under a pseudonym.
- Failed to report income from these accounts on his tax returns while using the funds to finance his lifestyle.
- Misrepresented himself as a non-U.S. citizen, claiming Brazilian residency to evade US tax laws.
Moving Funds to Avoid Detection
Rotta took steps to avoid IRS scrutiny:
- In 2008, after UBS faced a criminal probe for aiding US tax evasion, he transferred his funds to Credit Suisse and Bank Bonhôte.
- In 2011, when the IRS obtained records of one of his accounts, he changed the ownership documentation to make it appear that a Brazilian national controlled the assets.
- Despite these efforts, Rotta retained full control and continued using the money.
Lying to the IRS
When the IRS audited Rotta, he:
- Denied owning foreign accounts.
- Claimed withdrawals were non-taxable loans from foreign nationals.
- Provided fake promissory notes and affidavits to support his claims.
- Routed money through nominee accounts and attorney trust funds in the U.S. to conceal its origin.
Attempt to Reverse IRS Findings
After the IRS assessed millions in additional taxes and penalties, Rotta:
- Filed a false petition in U.S. Tax Court denying his foreign accounts.
- Submitted fake loan documents.
- Coordinated with nominee account owners to support his fraudulent claims.
- Presented false evidence to show that “loan repayments” were made, when in reality, the funds returned to his control shortly after the IRS dismissed the case.
Using Fake Trusts to Move Money
Rotta also employed U.S.-based attorneys to create sham trust structures. These:
- Made it appear that a co-conspirator funded the trusts.
- Allowed him to transfer assets from Swiss accounts without alerting the IRS.
- Provided further cover for his tax evasion activities.
Failed Attempt at Voluntary Disclosure
In 2019, Rotta applied for the IRS voluntary disclosure program, which allows non-compliant taxpayers to rectify their mistakes and limit criminal liability. However, he:
- Falsely claimed the Swiss accounts mostly belonged to others.
- Insisted that money given to him was in the form of non-taxable gifts.
- Lied about a nominee account owner’s family situation, stating the individual had no heirs, despite having two children.
Sentencing and Legal Actions
Rotta faces a maximum of five years in prison. His sentencing is set for June 4. The final punishment will be determined by a federal district court judge, considering U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the IRS Criminal Investigation (IRS-CI) unit, including special agents from its International Tax & Financial Crimes group. Prosecutors include Senior Litigation Counsels Sean Beaty and Mark Daly, along with Trial Attorneys Patrick Elwell and William Montague.
A Costly Fraud with Lasting Consequences
Rotta’s elaborate schemes allowed him to evade taxes for decades, but in the end, deception caught up with him. The case highlights the IRS’s commitment to tracking down hidden assets and enforcing tax compliance, no matter how complex the fraud.
