Ex-UBS Banker Liechti Undergoes Grilling From Weil’s Attorney

Oct. 24 (Bloomberg) — An attorney at the tax-conspiracy trial of Raoul Weil, who once ran UBS AG’s global wealth- management business, questioned the government’s key witness to try to show he resented his boss’s success.

Former UBS banker Martin Liechti testified yesterday to federal jurors in Fort Lauderdale, Florida, that Weil, his boss, knew the bank helped American clients evade their taxes and refused to bring the firm into compliance with U.S. tax laws.

On cross-examination today, Weil’s attorney Matthew Menchel said both men held similar positions for years at UBS, the largest Swiss bank. Menchel implied that Weil’s promotion over Liechti gave him a motive to impugn his boss.

“The truth is there was always tension between the two of you, and other people noticed,” Menchel said. “Isn’t that true?”

“No,” said Liechti, who signed an immunity agreement with the U.S. in 2008.

The case is U.S. v. Weil, 08-cr-60322, U.S. District Court, Southern District of Florida (Fort Lauderdale).

To contact the reporter on this story: David Voreacos in federal court in Newark, New Jersey, at [e-mail]

To contact the editor responsible for this story: Andrew Dunn at [e-mail]