News Clips & Coverage

A former employee of Vanguard Group Inc. has sued the mutual-fund company in New York, saying it has avoided paying federal and state taxes and sheltered hundreds of millions of dollars annually.
The civil suit, unsealed in the Supreme Court of New York on Friday, accuses the Malvern, Pa.-based firm of operating an illegal tax shelter for nearly 40 years, thus avoiding $1 billion of U.S. federal income tax and at least $20 million of New York tax over the last 10 years, according to a...

A former Vanguard Group employee sued the mutual fund giant, claiming it has operated a massive tax shelter for all of its nearly 40 years of existence. The suit, unsealed in the New York Supreme Court in Manhattan Friday, said the Malvern, Pa.-based company avoided paying hundreds of millions of dollars worth of state and federal income taxes each year.
Vanguard denies the charges, levied in a lawsuit filed on May 8, 2013 by David Danon, a former tax manager in the company’s...

A former Vanguard Group employee sued the mutual fund giant, claiming it has operated a massive tax shelter for all of its nearly 40 years of existence. The suit, unsealed in the New York Supreme Court in Manhattan Friday, said the Malvern, Pa.-based company avoided paying hundreds of millions of dollars worth of state and federal income taxes each year.
Vanguard denies the charges, levied in a lawsuit filed on May 8, 2013 by David Danon, a former tax manager in the company’s...

A former employee of Vanguard Group Inc has filed a whistleblower lawsuit against Vanguard in New York, claiming the company avoided paying federal and state taxes, The Wall Street Journal reported.
The civil suit, which was unsealed in the Supreme Court of New York on Friday, alleges that Vanguard, the largest U.S. largest mutual fund company, has been operating an illegal tax shelter for around 40 years, the Journal said, citing a copy of the complaint. (on.wsj.com/1xdo5RR)
The...

A former Vanguard Group Inc. in-house attorney and ex-Sullivan & Cromwell LLP associate has hit the investment manager with a False Claims Act suit in New York state court alleging it illegally evaded more than $1 billion in federal and state taxes over the past decade, the plaintiff's attorney said Friday.
Former Vanguard associate counsel David Danon's complaint against Vanguard was filed last year and unsealed Friday, according to Danon's attorney, Brian Mahany of Mahany & Ertl...

The Vanguard Group Inc. is facing whistleblower allegations that it has avoided paying $1 billion in state and federal taxes over the last decade, according to a copy of the complaint.
“Vanguard has operated as an illegal tax shelter for nearly 40 years” by providing services “at prices designed to avoid federal and state income tax” and sheltering hundreds of millions in income, the complaint alleges.
The complaint was brought by a former Vanguard employee...

A giant Ponzi scheme described by one attorney as “the worst I have ever seen,” involving perhaps up to 1,000 small real estate investors across the country and more than $250 million, is starting to come to light following a fraud complaint filed June 18 against Cabot Investment Properties by the Commonwealth of Massachusetts.
Brian Mahany, an attorney whose firm represents more than 200 victims trying to recover funds, said, “This truly is the worst Ponzi scheme I have...

Several Northeastern Wisconsin residents were among those who had millions of dollars stolen by investors to fund a lavish New York lifestyle, according to their attorney.
The local investors — some of them elderly people who risked significant parts of their life savings for what was billed as quality retirement income — were among more than 500 people nationwide who paid a Boston investment firm for ownership stakes in properties including Green Bay’s East Town...

Largely affecting those banks outside of the U.S., the Foreign Account Tax Compliance Act requires all foreign financial institutions to report the activities of their American clients to the Internal Revenue Service. But given the recent demands from other nations hinting at reciprocity, the overreaching legislation could impact banks and financial institutions in the U.S. as well.
Now, there is the additional element of certain key countries rejecting FATCA outright, and the...

When Swiss bankers Stephan Fellman, Otto Huppi and Christof Reist began their six-year campaigns to lure US taxpayers into opening accounts at the Swiss financial institution Kantonal Bank Zurich (KBZ), they advertised their services as discreet and operating under the radar of US agencies, particularly the Internal Revenue Service. Now, thanks to an indictment unsealed last week in Manhattan federal court, the three bankers have the US government’s full attention, as they face criminal...