2 UBS ex-chairmen may face charges

BERN, Switzerland | Former UBS AG chairmen Marcel Ospel and Peter Kurer could face charges related to the bank’s reputed practice of helping U.S. clients evade taxes, after the Swiss Social Democratic Party filed criminal complaints against them on Friday.

An out-of-court settlement reached Wednesday between the U.S. and Swiss governments indicates that the names of some of UBS’ American account holders could be released to U.S. investigators without breaking Swiss banking secrecy rules, the party’s president, Christian Levrat, said.

Under Swiss law this would only be possible if the account holders were involved in tax fraud, he said.

The Social Democrats, whose members include Foreign Minister Micheline Calmy-Rey, claim Mr. Ospel and Mr. Kurer must have known the bank was helping its foreign clients hide money in offshore accounts.

The party has asked Zurich prosecutors to examine whether the men can be charged with fraudulent business practices and abetting tax fraud. Mr. Ospel left the bank in 2008. His successor, Mr. Kurer, was replaced by current chairman Kaspar Villiger in April.

Mr. Kurer said the Social Democrats’ complaint already had been examined by authorities in Switzerland and abroad and was deemed to be baseless. He did not elaborate.

Mr. Ospel could not immediately be reached.

UBS declined to comment on the complaint against its former employees.

The bank’s share price has climbed 7.6 percent in the two days since the U.S. settlement was announced, closing at $15.99 Friday. Investors are hoping the U.S. deal will be the final chapter in a yearlong legal battle that has damaged the bank’s reputation abroad and at home.

Swiss Justice Minister Eveline Widmer-Schlumpf said details of the deal would be announced when the agreement is signed by both governments - probably next week. Experts say UBS will likely have to hand over the names of some of the 52,000 Americans suspected by U.S. tax officials of hiding nearly $15 billion in secret accounts.

The bank already named over 250 American clients earlier this year and paid a $780 million penalty in a deferred prosecution agreement with the U.S. Justice Department over the tax evasion case.