Boston Bank Director Hid Funds In Bermuda Account, Faces Up Tp Five Yeara in Prison

A Managing Director of the SCG Cosulting Group of Boston faces charges of failing to report an offshore account in Bermuda at HSBC Holdings PLC. Michael Schiavo of Westford Massachusetts has agreed to plead guilty of failing to report the foreign account. He is one of three executives charged as part of the givernment’s crackdown on the illegal use of offshore accounts to evade taxes. Two doozen others have recently been charged with hiding moneys in Swiss accounts. Schiavo’s firm services venture capital and private equity firms. Since July 2003 he has been the director at Boston Private Bank and Trust Co. The IRS has a revamped whistleblower program where individuals reporting information of tax fraud may receive upto 30% of what the government recovers.