UBS Group AG is standing trial in Paris, accused of retaliating against two whistleblowers who exposed the bank’s alleged efforts to assist wealthy French clients in tax evasion, Bloomberg reports.
The trial, beginning Tuesday, marks a significant development in a saga spanning over 15 years.
The French unit of the Swiss banking giant is accused of unfairly targeting Nicolas Forissier, a former auditor, and Stéphanie Gibaud, who aided authorities in surveillance operations. Forissier, who was preparing a report detailing potentially illegal activities, allegedly faced demotion and a drastic reduction in his bonus. Gibaud, who organized events for high-net-worth clients, claims her responsibilities were diminished and her performance evaluations negatively impacted after she assisted authorities in monitoring clients at a 2011 Roland-Garros tennis tournament event.
The potential consequences for UBS France are severe. Beyond a maximum fine of €75,000, a conviction could result in an operational ban. The bank, which has consistently denied wrongdoing, declined to comment before the trial.
This case unfolds against a backdrop of previous legal battles. UBS was previously convicted of money laundering in a separate prosecution partially based on Forissier’s report. However, late last year, the bank secured a ruling from France’s highest court to re-examine the €1.8 billion penalty levied for assisting wealthy French clients in hiding undeclared funds in Swiss accounts.
Gibaud’s efforts to receive official recognition and compensation for her whistleblowing have yielded limited success. A court ruled in 2022 that her disclosures to tax authorities were insufficient to warrant a substantial reward. In contrast, Forissier received a medal of merit from President Emmanuel Macron in June this year.
The trial, expected to conclude mid-next week, will focus on the bank’s alleged actions against both whistleblowers.
