UBS AG confirmed that one of its senior employees was “briefly detained” by US authorities under a material witness warrant amid investigations on whether UBS advisors have helped their clients to evade US tax obligations.
UBS said the Swiss-based employee would remain in the US pending discussions with the authorities regarding resolution of his status as a witness.
However, the employee had not been charged with any wrongdoing.
"The Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) are examining UBS's conduct in relation to cross-border services by Swiss-based UBS client advisors to US clients during the years 2000-2007," UBS said.
While the DOJ is investigating whether UBS advisors have helped clients to evade US taxes, the SEC is probing whether Swiss-based UBS client adviser "engaged in activities in relation to their US domiciled" should have registered with the SEC as broker deals or investment advisors.
UBS said it is co-operating with the investigations.