JBAXY Julius Baer Group Ltd (PK)

Swiss bank Julius Baer Group AG on Thursday admitted to helping U.S. taxpayers hide billions of dollars in offshore accounts and agreed to pay $547 million.

Separately, two of the bank's former client advisers—Daniela Casadei and Fabio Frazezetto—pleaded guilty to conspiring to help clients evade taxes in the U.S. The Swiss residents, initially charged in 2011, surrendered to U.S. authorities this week.

Ms. Casadei, 52 years old, and Mr. Frazzetto, 42, are scheduled to be sentenced on Aug. 12.

Julius Baer, which the authorities say at its high had about $4.7 billion under management related to more than 2,500 undeclared accounts from U.S. taxpayers, is one of about a dozen Swiss banks that have come under U.S. Justice Department investigation for allegedly providing Americans with undeclared accounts that were shielded by Switzerland's bank secrecy laws.

In 2014, Credit Suisse Group AG pleaded guilty to tax evasion conspiracy and agreed to pay $2.6 billion.

On Monday, Julius Baer Chief Executive Boris Collardi acknowledged at a news conference that it had dismissed a worker shortly after the corruption scandal at FIFA, soccer's global governing body, broke last year. The bank, mentioned in an indictment of FIFA officials for alleged racketeering and money laundering conspiracies, is cooperating with the authorities, Mr. Boris said.

Under Thursday's agreement, filed in Manhattan federal court, the Swiss bank agreed to pay the $547 million by Feb. 9 and pleaded guilty to conspiracy to defraud the IRS, file false federal income tax returns and evade federal income taxes.

The bank had disclosed the potential settlement in December.

In return, the government agreed to defer prosecution for three years and requested the charges be dismissed after that time if the bank complies with all requirements.

"Julius Baer not only turned a blind eye to tax avoiders, but actually conspired with them to break the law," U.S. Attorney Preet Bharara said in a statement.

According to court documents, the bank circulated an internal memo, titled "U.S. Clients Do's & Don'ts," giving client advisers suggestions on what to do and say while in the U.S. to avoid scrutiny. For example, it told employees to respond to questions from immigration officials focusing on the "fun time" part of their trip and to use calling cards, preferably bought in cash, to talk with clients while in the U.S.

However, the authorities said the bank had begun to change its policies, such as requiring U.S. tax forms when opening new accounts, before learning it was under investigation.

John Letzing contributed to this article.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

February 04, 2016 20:45 ET (01:45 GMT)

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