In a related development this week, Swiss bank Mirabaud & Cie. faces new questions from a powerful U.S. lawmaker about its failure to recognize the origin of $1 billion deposited on behalf of Brockman, Bloomberg reported.

U.S. Sen. Ron Wyden, D-Ore., chairman of the Senate Finance Committee, asked the bank’s U.S. lawyer on Wednesday to explain what steps it took to uncover the source of that untaxed money. Swiss prosecutors froze about $950 million linked to Brockman after his indictment in October 2020.

The U.S. claims Brockman concealed his control of money at Mirabaud by hiding behind nominee accounts and false paper trails created by Evatt Tamine, a lawyer now cooperating with federal authorities. Wyden’s request expands his initial inquiry in September, when the bank said Brockman had concealed his ownership of the funds.

Tamine, who wasn’t charged with a crime, was testifying on Wednesday as a prosecution witness in Brockman’s competency hearing.

Wyden’s letter said it was “critical to understand what information the bank requested from Mr. Tamine or other account signatories at the time of onboarding” and when large deposits were made, including one for $799 million in 2010. Prosecutors say that was a distribution from Vista Equity Partners, where Brockman was the original investor, eventually providing at least $1 billion in capital.

“Did Mirabaud ever request any information related to the source of wealth or source of funds for this deposit?” Wyden asked.

Wyden asked about the bank’s due diligence and “know your customer” procedures to determine who ultimately owns accounts.

A spokesman for the bank said Wednesday the indictment made clear that “Brockman went to great lengths to deceive Mirabaud about his real involvement in the accounts,” which were not held in his name.

According to the spokesman, Mirabaud has complied with all U.S. treaty requests for information in the Brockman investigation and with the Foreign Account Tax Compliance Act, which requires overseas financial institutions to report assets held by U.S. account holders.

In response to an earlier Wyden query, the bank’s lawyer wrote on Oct. 1 that until the indictment was released, it was unaware of Brockman’s role, it had no contact with him, and it was “not in a position to verify or request any information from him.”

Bloomberg contributed to this report.

By Mistas

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