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U.S. Seizes $16 Million|From Swiss Bank

MANHATTAN (CN) - The United States seized $16 million from the Swiss bank Wegelin & Co. in a default judgment Wednesday, the U.S. Attorney's Office said.

The money will go to the Treasury Forfeiture Fund.

Wegelin was indicted in February for conspiring with U.S. taxpayers to hide more than $1.2 billion from the IRS. Uncle Sam also filed an in rem forfeiture complaint against the money in a Wegelin correspondent's account, maintained by UBS AG, in Stamford, Conn.

"According to the complaint, Wegelin and at least two other Swiss banks used the Stamford account and the funds therein to covertly launder funds held in undeclared accounts in Switzerland so that their U.S. taxpayer-customers could get access to their funds without being detected by U.S. authorities, thereby continuing to avoid paying taxes owed and due to the IRS," the U.S. Attorney's Office said in its statement. "Wegelin was provided notice of this forfeiture action, but did not file a claim to challenge the forfeiture of the funds in the Stamford account."

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