Raoul Weil

Raoul Weil
Born	(1959-11-13) November 13, 1959 Switzerland
Occupation	Banker
Known for	Former chairman and CEO of Global Wealth Management & Business Banking at UBS AG; involvement in 2008-09 US tax evasion scandal

Raoul Weil (born 13 November 1959) is a Swiss banker who formerly served as chairman and CEO of Global Wealth Management & Business Banking at UBS AG. Additionally, he held a position on UBS's group executive board.

Under Weil's leadership, UBS became entangled in the 2008-09 U.S. tax evasion scandal, which led to his voluntary resignation following an indictment by the U.S. Justice Department. He was accused of aiding thousands of UBS clients in the United States in evading federal income taxes. Arrested in Italy in October 2013, Weil was extradited to the United States and subsequently released on bail amounting to $10.5 million in December 2013. His trial commenced in October 2014 and concluded with a not guilty verdict on November 3, 2014.

Early life

Born in Switzerland, Weil earned both a degree and a master's in economics from the University of Basel, focusing on national economics and business administration.

Charitable activities

Weil is affiliated with the Optimus Foundation, a philanthropic entity managed by UBS that concentrates on global initiatives for disease prevention and education. In 2008, he was appointed chairman of its board with the objective of transforming it into Switzerland’s largest charitable foundation within ten years.

That year, Weil also spearheaded the Global UBS Philanthropy Forum, which brought together philanthropists, corporate leaders, social entrepreneurs, and representatives from civil society worldwide under the theme “Building Change Communities.”

Banking career

Following his completion of active military service in Switzerland in 1984, Weil joined Swiss Bank Corporation (SBC), where he worked within its private banking sector across locations including Basel, Zurich, Monaco, New York City, and Hong Kong until 1998. After SBC merged with UBS that year, Weil transitioned into UBS’s private banking division covering Asia and Europe. He rose to lead UBS's Wealth Management International division by 2002 and was named CEO of WM&BB in July 2007.

On November 12, 2008, Weil resigned voluntarily from UBS to concentrate on his legal defense after being indicted amid the U.S. Department of Justice’s probe into UBS’s cross-border business involving American clients. An international arrest warrant was issued against him in 2008.

On May 23, 2008, the Swiss Federal Banking Commission (EBK, now FINMA) initiated an inquiry into UBS’s involvement in facilitating tax evasion by U.S. clients. The EBK determined that senior management at UBS were unaware of fraudulent client activity and were not complicit. Instead, managers Martin Liechti and Michel Guignard were identified as the main figures who concealed misconduct from Weil.

After departing from UBS, Weil joined Reuss Private Group (Pfäffikon, Schwyz, Switzerland) as a consultant in 2010 and later became managing partner. In early 2013, he succeeded Adriano B. Lucatelli as CEO. That February, FINMA authorized Reuss to operate as a securities dealer and confirmed that its leadership team, including Weil, demonstrated “proper business conduct.” Weil stated that he had fully disclosed all pertinent details concerning the US-UBS tax matter during this process.

Felix Brem replaced Weil as CEO of Reuss Private Group on December 2, 2013.

Controversy Over US Tax Evasion

In 2008, the U.S. Federal Bureau of Investigation launched an investigation into a large-scale tax evasion scandal involving UBS. This probe was initiated following revelations from Brad Birkenfeld, a former UBS banker based in Switzerland, who collaborated with the US Department of Justice, Securities and Exchange Commission, and Internal Revenue Service. A subcommittee of the United States Senate accused Swiss financial institutions, including UBS, of facilitating wealthy American clients in evading taxes through offshore accounts, estimating annual tax revenue losses exceeding US$100 billion.

Consequently, UBS halted cross-border private banking services for US customers via units not regulated by US authorities as of July 2008. Although the DOJ sought access to UBS client data, Swiss banking secrecy laws barred such disclosures. The Swiss government engaged in negotiations with the DOJ to safeguard these confidentiality provisions. On November 6, 2008, a U.S. grand jury issued a sealed indictment against Raoul Weil connected to the investigation. Swiss officials requested that the DOJ utilize the US-Switzerland Double Taxation Treaty to facilitate information exchange. The indictment against Weil was made public on November 12, 2008.

Weil resigned from UBS to concentrate on his legal defense. On February 18, 2009, UBS consented to pay a $780 million penalty and entered into a deferred prosecution agreement after admitting to conspiracy to obstruct the IRS. Despite UBS resolving its criminal case and agreeing later that year to reveal thousands of US client records, Weil’s criminal charges persisted.

In January 2014, the National Whistleblowers Center speculated that Weil might be negotiating a plea deal with the DOJ due to his possession of sensitive information about affluent individuals; however, no official agreement has been announced. Weil continues preparing for trial.

Legal Proceedings

On January 13, 2009, Judge James Cohn declared Weil a fugitive. Weil has consistently denied wrongdoing and remained in Switzerland following his indictment, maintaining that he did not abscond from the United States.

Extradition Process

Weil was apprehended on October 19, 2013, in Bologna, Italy while traveling from Switzerland. Italian authorities rejected his request for house arrest, and he opted not to challenge extradition to the United States. Weil’s decision to cooperate fueled speculation that he may have negotiated favorable terms with the U.S. Department of Justice, which had previously shown leniency toward another UBS conspirator, Martin Liechti, according to whistleblower Bradley Birkenfeld’s attorney, Stephen M. Kohn from the National Whistleblower Center.

Birkenfeld operated several tiers below Weil and reportedly had no direct acquaintance with him. Kohn suggested that Weil possesses crucial insider knowledge that could be instrumental in securing reduced charges. In court documents, Weil asserted that any wrongdoing was committed by subordinates who concealed their actions from him and cited an EBK investigation clearing him as supporting evidence for his defense.

Arraignment and Trial

During his federal court appearance in Fort Lauderdale, Florida on December 16, 2013, Weil faced charges of conspiracy to defraud the IRS and was subsequently granted bail with conditions requiring house arrest in New Jersey. At the arraignment held on January 7, 2014, he entered a plea of not guilty to accusations involving assistance to U.S. taxpayers in concealing taxes on offshore assets valued at $20 billion.

The trial commenced on October 14, 2014, and after deliberating for just over an hour on November 3, 2014, the jury found Weil not guilty. This decision is conclusive as the prosecution lacks the option to appeal the verdict.