Date: 12-31-2023

Case Style:

United States of America v. Rolf Schnellmann

Case Number: 1:20-cr-00497

Judge: Gregory H. Woods

Court:

United States District Court for Southern District of New York

Plaintiff's Attorney: Damian Williams, the United States Attorney for the Southern District of New York, and Stuart M. Goldberg, Acting Deputy Assistant Attorney General

Defendant's Attorney:

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Description:

New York City, New York criminal defense lawyer represented the Defendant Indicted on Tax Fraud Conspiracy Charges

ROLF SCHNELLMANN, a Swiss former executive, pled guilty to conspiring to defraud the United States in connection with a scheme to help high-value U.S. taxpayer-clients conceal more than $60 million in income and assets held in undeclared, offshore bank accounts and to evade U.S. income taxes. SCHNELLMANN pled guilty before U.S. District Judge Gregory H. Woods.


SCHNELLMANN was the former head of Allied Finance Trust AG, a Zurich-based financial services company that was a subsidiary of the Allied Finance Group in Liechtenstein. From in or about 2008 to in or about 2014, SCHNELLMANN and his co-conspirators defrauded the IRS by concealing income and assets of high-value U.S. taxpayer-clients with undeclared bank accounts at Privatbank IHAG Zurich AG (“IHAG”), a Swiss private bank. In order to assist the U.S. taxpayer-clients, SCHNELLMANN and his co-conspirators devised and implemented a scheme dubbed the “Singapore Solution” to fraudulently conceal the bank accounts of the U.S. taxpayer-clients, their assets, and their income from U.S. authorities. In furtherance of the fraudulent scheme, SCHNELLMANN and his co-conspirators conspired to transfer more than $60 million from undeclared IHAG bank accounts of the U.S. taxpayer-clients through a series of nominee bank accounts in Hong Kong and other locations before returning the funds to newly opened accounts at IHAG in the name of a Singapore-based asset-management firm that a co-conspirator helped establish. The U.S. taxpayer-clients paid large fees to IHAG and others to help them conceal their funds and assets and evade taxes.

SCHNELLMANN was arrested in August 2023 in Italy and extradited to the United States.

SCHNELLMANN, 61, of Switzerland, pled guilty to one count of conspiracy to defraud the United States, which carries a maximum sentence of five years in prison. SCHNELLMANN is scheduled to be sentenced by Judge Woods on July 19, 2024, at 10:00 a.m.

The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as SCHNELLMANN’s sentence will be determined by the judge.

Mr. Williams praised the outstanding work of the Internal Revenue Service, Criminal Investigation. Mr. Williams also thanked the Department of Justice’s Office of International Affairs, Interpol, Italian law enforcement authorities, the Prosecutor General’s Office of Trieste, and the Italian Ministry of Justice for their assistance in the extradition of the defendant. Mr. Williams thanked the Department of Justice’s Tax Division for their partnership on this case.


18:371.F CONSPIRACY TO DEFRAUD THE UNITED STATES AND THE INTERNAL REVENUE SERVICE
(1)

Outcome: 12/21/2023 97 Minute Entry for proceedings held before Judge Gregory H. Woods:Initial Appearance re: Revocation of Supervised Release as to Rolf Schnellmann held on 12/21/2023. Bond Hearing as to Rolf Schnellmann held on 12/21/2023. AUSA Nanette Louise Davis present for the Government. Defendant present with Federal Defender attorney Zawadi Baharanvi. BAIL DISPOSITION: DEFENDANT RELEASED ON OWN RECOGNIZANCE.MR. SCHNELLMANN MUST REFRAIN FROM THE USE OF ILLEGAL SUBSTANCES.MR. SCHNELLMANN MUST FOLLOW THE INSTRUCTIONS OF THE U.S. GOVERNMENT.MR. SCHNELLMANN MUST RETURN TO THE UNITED STATES FOR HIS SENTENCING HEARING.SHOULD MR. SCHNELLMANN VIOLATE THE AGREED-UPON TERMS OF THE BAIL PACKAGE, HE WOULD BE CONSIDERED A FUGITIVE SUBJECT TO ANY AND ALL ACTIONS THAT THE U.S. GOVERNMENT COULD AND WOULD TAKE TO SECURE HIS ARREST AND FURTHER PROSECUTION. (job) (Entered: 12/21/2023)
12/21/2023 98 Order Setting Conditions of Release Bond Entered as to Rolf Schnellmann. DEFENDANT RELEASED ON OWN RECOGNIZANCE.MR. SCHNELLMANN MUST REFRAIN FROM THE USE OF ILLEGAL SUBSTANCES.MR. SCHNELLMANN MUST FOLLOW THE INSTRUCTIONS OF THE U.S. GOVERNMENT.MR. SCHNELLMANN MUST RETURN TO THE UNITED STATES FOR HIS SENTENCING HEARING.SHOULD MR. SCHNELLMANN VIOLATE THE AGREED-UPON TERMS OF THE BAIL PACKAGE, HE WOULD BE CONSIDERED A FUGITIVE SUBJECT TO ANY AND ALL ACTIONS THAT THE U.S. GOVERNMENT COULD AND WOULD TAKE TO SECURE HIS ARREST AND FURTHER PROSECUTION. (job) (Entered: 12/21/2023)
12/21/2023 Minute Entry for proceedings held before Judge Gregory H. Woods: Change of Plea Hearing as to Rolf Schnellmann held on 12/21/2023. Defendant Rolf Schnellmann (in custody) present with attorney Zawadi S Baharanyi. AUSA Nanette Louise Davis present. IRS-CI Special Agent Amy Lindner present. German Interpreter Magna Czagany on standby. Change of plea hearing held. Defendant sworn in. Defendant advised of rights. Defendant withdraws previously entered not guilty plea and enters a plea of GUILTY to Count 1 of the Indictment. Plea agreement entered as court exhibit #1. PSI ordered. The Government is to provide the factual statement of the offense to the Probation Department within the next 7 days. Defense counsel is to set up the interview with the Probation Department within the next 2 weeks. No interview to be conducted by the Probation Department without the participation of defense counsel. Sentencing is scheduled for July 19, 2024 at 10:00 a.m. in Courtroom 12C, Daniel Patrick Moynihan United States Courthouse, 500 Pearl Street, New York, New York 10007. The defendant's sentencing submissions are due two weeks prior to sentencing; the Government's sentencing submissions are due one week prior to sentencing. See transcript. (Sentencing set for 7/19/2024 at 10:00 AM in Courtroom 12C, 500 Pearl Street, New York, NY 10007 before Judge Gregory H. Woods) (Court Reporter Doug Colavito) (ap) (Entered: 12/21/2023)
12/21/2023 Minute Entry for proceedings held before Judge Gregory H. Woods: Plea entered by Rolf Schnellmann (5) Guilty as to Count 1. (ap) (Entered: 12/21/2023)

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