US judge formalizes Credit Suisse guilty plea, $2.6B payment for aiding US tax evasion

European bank Credit Suisse's guilty plea to helping wealthy Americans avoid paying taxes has been formalized by a federal judge.

U.S. District Chief Judge Rebecca Beach Smith in Norfolk, Virginia on Friday entered orders requiring Credit Suisse AG to pay $2.6 billion in fines and restitution to the U.S. government and regulators. Credit Suisse, Switzerland's second-largest bank, pleaded guilty in May in a settlement with the Justice Department to using secret offshore accounts to help Americans skirt their tax obligations.

Continue Reading Below

The Justice Department said it was the largest penalty imposed in a U.S. criminal tax case. Officials said the bank's misconduct spanned decades and included failing to cooperate with investigators.

The settlement resolved a years-long investigation into allegations that Credit Suisse recruited U.S. clients to open Swiss accounts.