Chapter 10: Hunted - When the Hunter Becomes the Prey

January 2008. Birkenfeld was back in Geneva, breathing cold Alpine air and trying to enjoy his freedom. He had given everything to the US Senate, the IRS, and the SEC. They were grateful. But the DOJ prosecutor Kevin Downing? He still wanted Birkenfeld’s head on a plate. This is Chapter 10 of my Lucifer’s Banker Uncensored retelling.

Playing Spy While Waiting for the Axe

Birkenfeld did not sit around feeling sorry for himself. He threw himself into private equity deals, flew to Mumbai to sign a coal deal with the Indian minister of oil and gas, then hopped to Beijing and Shanghai pitching real estate. Business as usual on the surface.

But underneath, he was running a one-man intelligence operation. He wined and dined his old UBS buddies, coaxing fresh secrets out of them over dinner and wine. They had no idea he was funneling everything to the Senate, IRS, and SEC. One colleague even sent him an internal memo from Martin Liechti ordering bankers to stay out of the US. Birkenfeld passed it straight along.

UBS Circles the Wagons

In mid-January, the Financial Times reported that UBS would close all secret accounts for US clients. Birkenfeld knew it was theater. The bank was really destroying evidence, rerouting operations to countries that did not care about tax fraud, and moving assets into new offshore structures. Same tricks, different wrappers.

Meanwhile, Birkenfeld kept sending intel using pay phones, internet cafes, and FedEx packages. Old school spy stuff.

The Olenicoff Circus

The sealed indictments started dropping. First target: Igor Olenicoff, the billionaire Birkenfeld had once managed. Igor hired a former DOJ prosecutor from the same office prosecuting him (the revolving door in action), pled guilty to a single felony, and paid a $52 million fine. For a guy worth over $2 billion, that was pocket change.

His sentence? Two years probation and 120 hours of community service. No prison. His own lawyer called it “the deal of the century.” Birkenfeld’s takeaway was simple: if you are rich enough, the rules are just suggestions.

Liechti Gets Caught

The indicted UBS bosses – Bovay, Guignard, Liechti, Weil – all got tipped off by Swiss authorities. As long as they stayed in Switzerland, they were safe. Simple plan.

But Martin Liechti was too arrogant for simple plans. In mid-April he boarded a flight to the Bahamas, routed through Miami. He figured he could stroll between terminals. Instead, his name popped up at Passport Control. ICE agents grabbed him. The DOJ held him as a “material witness” – not arrested, just locked in a five-star Miami hotel with armed guards for four months. Golden cage.

When Birkenfeld heard the news from a colleague in Geneva, part of him celebrated. But part of him felt like a mole whose own side was closing in. He had given the authorities the ammunition that led to Liechti’s capture. And his lawyers had failed to get him immunity. If his bosses were getting picked off, he was next.

The Decision

Birkenfeld had two options. Stay in Geneva forever – nice flat, Swiss chalet in Zermatt, lovely life – and never go back to America. Or face the music.

His old military training answered for him: nothing matters but the mission. He called his lawyers and told them to set up meetings with the SEC and the Senate. He booked a one-way ticket to Boston.

Before leaving, he opened a Monopoly board game on his coffee table, pulled out the “Get Out of Jail Free” card, and tucked it in his wallet.

Ambush at Logan

He landed at dawn in Boston. The bay sparkled below. He got off the plane, headed for Passport Control, and saw four uniformed ICE agents striding toward him from a dark hallway.

“Would you come with us, please?”

They took him to an interrogation room. One agent put his foot on a chair, hand on his gun, and told Birkenfeld there was a warrant for his arrest from the Department of Justice.

Birkenfeld stayed cool. When they asked twice if he was carrying more than $10,000 in cash, he told them credit cards are lighter. They did not appreciate the humor. Cuffs went on. Holding cell.

He missed his high school reunion.

Previous: Chapter 9 Part 2 - Tightrope Next up: Chapter 11 Part 1 - The Twilight Zone

Part of the Lucifer’s Banker Uncensored series