A Malibu man has pleaded guilty to failing to report more than $1 million he transferred to a Swiss bank account.
John McCarthy formally pleaded guilty on Tuesday to one count of failing to file a Foreign Bank and Financial Accounts report. He faces up to five years in prison and fines totaling $250,000 when he is sentenced on Jan. 28.
McCarthy was the first person to be named publicly after the Swiss and U.S. governments reached a deal in August to settle American demands for the identities of suspected tax dodgers. The Internal Revenue Service is seeking more than 52,000 names from UBS AG, but both governments wouldn't say how many names will be revealed.
Prosecutors say McCarthy funneled the money to a UBS account with the help of a Swiss lawyer and bank officials.