Swiss Bank Admits Cash, Gold Withdrawals Cheated IRS

Large cash and gold withdrawals were one way Bank Lombard Odier & Co. allowed U.S. clients to sever a paper trail on their assets and cheat the Internal Revenue Service, the Swiss lender admitted, agreeing to pay $99.8 million to avoid prosecution.

Meanwhile, DZ Privatbank (Schweiz) AG agreed to pay almost $7.5 million.

Both penalties were under accords released Dec. 31.

Lombard Odier’s penalty is the second-largest paid under a program to help the U.S. clamp down on tax evasion through Swiss banks. Total penalties have reached more than $1.1 billion as banks have revealed how they helped clients hide ...