Complaint 

(Case No. ) 

1 U.S. DEPARTMENT OF JUSTICE 

Tax Division, Western Region 

P.O. Box 683 

Washington, D.C. 20044 

Telephone: 202-514-1170 

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RICHARD E. ZUCKERMAN 

Principal Deputy Assistant Attorney General 

PAUL T. BUTLER (MD Bar No. 9406230037) 

Trial Attorney, Tax Division 

U.S. Department of Justice 

P.O. Box 683 

Washington, D.C. 20044 

202-514-1170 (v) 

202-307-0054 (f) 

Paul.T.Butler@usdoj.gov 

Of Counsel: 

ELIZABETH A. STRANGE 

First Assistant United States Attorney 

IN THE UNITED STATES DISTRICT COURT 

 FOR THE DISTRICT OF ARIZONA

UNITED STATES OF AMERICA, ) 

 ) 

 Plaintiff, ) 

 ) 

 v. ) 

 ) 

EDMUND J. MASLOWSKI ) 

 ) 

 Defendant. ) 

_______________________________________)

Case No. 

COMPLAINT 

Plaintiff, the United States of America brings this action to collect from the 

defendant outstanding civil penalties (31 U.S.C. § 5321(a)(5)), commonly known as 

FBAR penalties, which were assessed against Edmund J. Maslowski, for his failure to 

timely report his financial interest in, and/or his signatory or other authority over, foreign 

bank accounts for the 2006, 2007 and 2008 calendar years, as required by 31 U.S.C. 

§ 5314 and its implementing regulations, having a total balance due to the United States 

Case 2:18-cv-00433-DGC Document 1 Filed 02/07/18 Page 1 of 11
Complaint 

(Case No. ) 

2 U.S. DEPARTMENT OF JUSTICE 

Tax Division, Western Region 

P.O. Box 683 

Washington, D.C. 20044 

Telephone: 202-514-1170 

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of America of $61,816.43 as of February 1, 2018 plus all associated penalties and 

interest. In support of this action, the United States alleges as follows: 

Jurisdiction and Venue 

1. This Court has jurisdiction under 28 U.S.C. §§ 1331, 1345, and 1355(a). 

2. At all times relevant to the matters at issue, Defendant Edmund J. 

Maslowski (“Maslowski”) was a United States citizen and remains a United 

States citizen. 

3. Maslowski is currently a resident of Scottsdale, Arizona. 

4. Venue is proper under 28 U.S.C. § 1391. 

5. The United States of America brings this action pursuant to the 

authorization of the Secretary of the Treasury (see 31 U.S.C. § 

3711(g)(4)(C)) and at the direction of the Attorney General of the United 

States. 

6. This civil action to collect the FBAR Penalty, and the associated penalties 

and interest, is timely under 31 U.S.C. § 5321(b)(2), because it is filed 

within two years of the date on which the 2006 FBAR Penalty, the 2007 

FBAR Penalty, and the 2008 FBAR Penalty were assessed, February 29, 

2016. 

Background Regarding Defendant’s Interests in Foreign Accounts 

7. Maslowski was born in the state of Illinois in 1952. 

8. On or about September 1, 1994, Maslowski opened a “numbered account” 

with an account number ending in 0563 by signing account opening 

Case 2:18-cv-00433-DGC Document 1 Filed 02/07/18 Page 2 of 11
Complaint 

(Case No. ) 

3 U.S. DEPARTMENT OF JUSTICE 

Tax Division, Western Region 

P.O. Box 683 

Washington, D.C. 20044 

Telephone: 202-514-1170 

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documents at the Hong Kong office of the Swiss Bank Corporation located 

in Zurich, Switzerland (“the UBS account”). 

9. Amongst the account opening documents signed by Maslowski on or about 

September 1, 1994, were: an account application including instructions to 

Swiss Bank Corporation to retain at the bank all correspondence related to 

the account number ending in 0563; a form identifying Maslowski as the 

beneficial owner of the account ending in 0563; a Charge/Declaration of 

Pledge form acknowledging that all disputes between Maslowski and the 

bank related to the account ending in 0563 would be governed by and 

decided under Swiss law; and, an agreement regarding Margins for 

Forward/Futures Transactions indicating that the venue for performance of 

such agreement, and any court proceedings under the agreement, would be 

Zurich, Switzerland. 

10. During the years 1997-1998 Swiss Bank Corporation and Union Bank of 

Switzerland merged to become UBS in Zurich, Switzerland and the account 

ending in 0563 continued to be maintained and serviced with the same 

account number by the resulting UBS entity. 

11. Following the merger that created the UBS entity, Maslowski continued to 

sign account documents governing the operation and management of the 

UBS account including, but not limited to: a Customer Declaration 

allowing UBS to disclose account information to its intermediaries in Hong 

Kong on April 26, 1999; a General Proxy for the Representation of Shares, 

Case 2:18-cv-00433-DGC Document 1 Filed 02/07/18 Page 3 of 11
Complaint 

(Case No. ) 

4 U.S. DEPARTMENT OF JUSTICE 

Tax Division, Western Region 

P.O. Box 683 

Washington, D.C. 20044 

Telephone: 202-514-1170 

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Opening of an Account/Custody Account form, and a Verification of 

Beneficial Owner’s Identity form on May 4, 2000; and, a General Power of 

Attorney form granting unlimited signatory authority to his then-wife, 

Diane Maslowski, on September 5, 2000. 

12. At some point in time prior to June of 2001, Maslowski opened an account 

at Standard Chartered Bank in Hong Kong bearing an account number 

ending in 6966 (“the Standard Chartered account”). 

13. During 2001 and 2002, Maslowski issued several orders to UBS to transfer 

funds from the UBS account to the Standard Chartered account. 

14. At some point in time prior to September of 2002, Maslowski caused an 

account to be opened at HSBC in Hong Kong in the name of Sunny East 

Consultants Limited with an account number ending in 3734, over which 

Maslowski retained signatory authority and beneficial ownership (“the 

HSBC account”). 

15. Beginning in or before September of 2002 and continuing through February 

of 2008, Maslowski placed numerous orders with UBS to liquidate equity 

holdings in the UBS account, convert the contents of the UBS account from 

US dollars to Swiss francs, and gradually transferred the UBS account 

balance to the HSBC account, resulting in the closure of the UBS account 

on or about March 1, 2008. 

16. At some point in time prior to December 31, 2003, Maslowski caused a 

second account to be opened at HSBC in Hong Kong in the name of Sunny 

Case 2:18-cv-00433-DGC Document 1 Filed 02/07/18 Page 4 of 11
Complaint 

(Case No. ) 

5 U.S. DEPARTMENT OF JUSTICE 

Tax Division, Western Region 

P.O. Box 683 

Washington, D.C. 20044 

Telephone: 202-514-1170 

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East Consultants Limited with an account number ending in 9001, over 

which Maslowski retained signatory authority and beneficial ownership 

(“the Second HSBC account”). 

17. Prior to June of 2011, Maslowski never filed an FBAR form disclosing his 

ownership interests in, nor signatory (or other) authority over, the UBS 

account, the Standard Chartered Account, the HSBC account, or the Second 

HSBC account to the United States Treasury nor the Internal Revenue 

Service. 

18. Throughout the calendar years 2006, 2007, and 2008 Maslowski was a 

United States citizen, resided within the United States, and/or was 

otherwise subject to the jurisdiction of the United States within the meaning 

of 31 C.F.R. § 103.241

. 

19. Throughout the calendar years 2006, 2007, and 2008 the UBS account, the 

Standard Chartered account, the HSBC account, and the Second HSBC 

account were bank accounts in foreign countries. 

20. From the date of opening each account through and including the entirety 

of calendar years 2006, 2007, and 2008, Maslowski had signatory authority 

 

1 Please note that the Regulations implementing the FBAR statute, 31 USC § 5314, were 

renumbered effective March 28, 2011 with respect to all reports due for foreign financial 

accounts maintained in calendar year 2010 and later. The updated regulations may be 

found at 31 CFR §§ 1010.300 et. seq. Prior to renumbering, the regulations effective for 

the years at issue herein were found at 31 C.F.R. § 103.24, 31 C.F.R. § 103.27, and 31 

C.F.R. § 103.32.

Case 2:18-cv-00433-DGC Document 1 Filed 02/07/18 Page 5 of 11
Complaint 

(Case No. ) 

6 U.S. DEPARTMENT OF JUSTICE 

Tax Division, Western Region 

P.O. Box 683 

Washington, D.C. 20044 

Telephone: 202-514-1170 

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over, and ownership interests in the UBS account, the Standard Chartered 

account, the HSBC account, and the Second HSBC account. 

21. From the date of opening each account through and including the entirety 

of calendar years 2006, 2007, and 2008, Maslowski was aware of his 

ownership interests and signatory authority over the UBS account, the 

Standard Chartered account, the HSBC account, and the Second HSBC 

account. 

22. Prior to and throughout calendar years 2006, 2007, and 2008 Maslowski 

made all investment decisions with respect to the funds included in the 

UBS account, the Standard Chartered account, the HSBC account, and the 

Second HSBC account identified above. 

Claim for Relief: Judgment for Civil Penalties (31 U.S.C. § 5321(a)(5)) 

Liability for the Civil Penalty for 2006 

23. The United States incorporates the allegations in paragraphs 1 through 22 

as if fully set forth herein. 

24. During calendar year 2006, the aggregate maximum account balance in the 

UBS account and the HSBC accounts identified above, exceeded 

$1,300,000.00. 

25. On all U.S. federal income tax returns filed by Maslowski through 2006, he 

failed to report any income from the UBS account and the HSBC account, 

above, and on Schedule B of such returns reported that he had no interest 

in, nor any authority over, any foreign financial accounts. 

Case 2:18-cv-00433-DGC Document 1 Filed 02/07/18 Page 6 of 11
Complaint 

(Case No. ) 

7 U.S. DEPARTMENT OF JUSTICE 

Tax Division, Western Region 

P.O. Box 683 

Washington, D.C. 20044 

Telephone: 202-514-1170 

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26. During calendar year 2006, Maslowski sent correspondence to UBS 

requesting the transfer of funds from the UBS account into the HSBC 

account and such orders were executed by UBS. 

27. Maslowski failed to timely file an FBAR for the year 2006 disclosing his 

ownership interests and signature authority over the UBS account and the 

HSBC account, despite being required to do so by 31 U.S.C. § 5314 and 31 

C.F.R. § 103.27(c). 

Liability for the Civil Penalty for 2007 

28. The United States incorporates the allegations in paragraphs 1 through 27 

as if fully set forth herein. 

29. During calendar year 2007, the aggregate maximum account balance in the 

UBS account and the HSBC account identified above, exceeded 

$650,000.00. 

30. On the U.S. federal income tax return filed by Maslowski for 2007, he 

failed to report any income from the UBS account and the HSBC account 

identified above, and on Schedule B of such return reported that he had no 

interest in, nor any authority over, any foreign financial accounts. 

31. During calendar year 2007, Maslowski sent correspondence to UBS 

requesting the transfer of funds from the UBS account into the HSBC 

account identified above, and such orders were executed by UBS. 

32. Maslowski failed to timely file an FBAR for the year 2007 disclosing his 

ownership interests and signature authority over the UBS account and the 

Case 2:18-cv-00433-DGC Document 1 Filed 02/07/18 Page 7 of 11
Complaint 

(Case No. ) 

8 U.S. DEPARTMENT OF JUSTICE 

Tax Division, Western Region 

P.O. Box 683 

Washington, D.C. 20044 

Telephone: 202-514-1170 

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HSBC account identified above, despite being required to do so by 31 

U.S.C. § 5314 and 31 C.F.R. § 103.27(c). 

Liability for the Civil Penalty for 2008 

33. The United States incorporates the allegations in paragraphs 1 through 32 

as if fully set forth herein. 

34. During calendar year 2008, the aggregate maximum account balance in the 

UBS account and the HSBC account identified above, exceeded 

$475,000.00. 

35. On the U.S. federal income tax return filed by Maslowski for 2008, he 

failed to report any income from the UBS account and the HSBC account 

identified above, and on Schedule B of such return reported that he had no 

interest in, nor any authority over, any foreign financial accounts. 

36. During calendar year 2008, Maslowski sent correspondence to UBS 

requesting the transfer of funds from the UBS account into the HSBC 

account identified above, and such orders were executed by UBS. 

37. Maslowski failed to timely file an FBAR for the year 2008 disclosing his 

ownership interests and signature authority over the UBS account and the 

HSBC account identified above, despite being required to do so by 31 

U.S.C. § 5314 and 31 C.F.R. § 103.27(c). 

Assessment and Collection of Civil Penalties for 2006, 2007, and 2008 

38. The United States incorporates the allegations in paragraphs 1 through 37 

as if fully set forth herein. 

Case 2:18-cv-00433-DGC Document 1 Filed 02/07/18 Page 8 of 11
Complaint 

(Case No. ) 

9 U.S. DEPARTMENT OF JUSTICE 

Tax Division, Western Region 

P.O. Box 683 

Washington, D.C. 20044 

Telephone: 202-514-1170 

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39. On April 18, 2013, January 15, 2014, January 16, 2015, July 6, 2015, and 

November 17, 2015, Maslowski consented, in writing, to extensions of the 

time within which to assess penalties under 31 U.S.C. § 5321. 

40. On February 29, 2016, in accordance with 31 U.S.C. § 5321(a)(5)(C)(i), a 

delegate of the Secretary of the Treasury assessed a civil penalty against 

Maslowski, in the amount of $10,000.00 for each of the UBS account and 

the HSBC account for each of the years 2006, 2007, and 2008 due to the 

failure of Maslowski to timely and properly disclose both the UBS account 

and the HSBC account. 

41. A delegate of the Secretary of the Treasury sent Maslowski notice of the 

assessment of the 2006, 2007, and 2008 FBAR Penalties and demand for 

payment. 

Additional Amounts Due and Owing to the United States 

42. The United States States incorporates the allegations in paragraphs 1 

through 41 as if fully set forth herein. 

43. The FBAR penalties described in paragraph 40 above were assessed 

pursuant to 31 U.S.C. § 5321(a)(5)(b)(i), which imposes a penalty not to 

exceed $10,000 for each violation of the FBAR filings requirements that is 

not due to a willful violation of 31 U.S.C. § 5321. 

44. Maslowski has not fully paid the outstanding FBAR penalties described in 

paragraph 40. 

Case 2:18-cv-00433-DGC Document 1 Filed 02/07/18 Page 9 of 11
Complaint 

(Case No. ) 

10 U.S. DEPARTMENT OF JUSTICE 

Tax Division, Western Region 

P.O. Box 683 

Washington, D.C. 20044 

Telephone: 202-514-1170 

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45. Pursuant to 31 U.S.C. § 3717(a)(1), the United States is entitled to recover 

prejudgment interest accrued on Maslowski’s unpaid penalties. In addition, 

pursuant to 31 U.S.C. § 3717(e)(2), the United States is entitled to recover a 

penalty for Maslowski’s failure to pay a lawful debt owed to the United 

States. Furthermore, pursuant to 31 U.S.C. § 3717(e)(1), the United States 

is entitled to recover charges assessed against Maslowski to cover 

collection-related costs of processing and handling his outstanding FBAR 

liabilities. 

46. As of February 1, 2018, the outstanding balance owed by Maslowski is 

$61,816.43. This amount includes assessed but unpaid FBAR penalties, as 

well as accruals pursuant to 31 U.S.C. § 3717 (i.e. prejudgment interest, 

failure to pay penalties, and collection-related costs). 

47. In addition to the $61,816.43, the United States is entitled to recover the 

additional penalty, interest, and any collection-related costs that accrue on 

that amount. 

WHEREFORE, the plaintiff United States of America demands that this Court: 

(a) Enter judgment in favor of the plaintiff United States of America and against 

the defendant, for the FBAR penalties assessed against Edmund J. Maslowski with 

regard to the 2006, 2007, and 2008 reporting periods, in the total assessed amount 

of $61,816.43 as of February 1, 2018, as well as associated penalties and interest, 

plus statutory accruals until fully paid; and, 

Case 2:18-cv-00433-DGC Document 1 Filed 02/07/18 Page 10 of 11
Complaint 

(Case No. ) 

11 U.S. DEPARTMENT OF JUSTICE 

Tax Division, Western Region 

P.O. Box 683 

Washington, D.C. 20044 

Telephone: 202-514-1170 

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(b) Award the United States of America its costs, and such further relief as the 

Court deems just and proper. 

Dated: February 7, 2018 

Respectfully submitted, 

RICHARD E. ZUCKERMAN 

Principal Deputy Assistant Attorney 

General 

/s/ Paul T. Butler_______________ 

PAUL T. BUTLER (MD Bar. 

9406230037) 

Trial Attorney, Tax Division 

U.S. Department of Justice 

P.O. Box 683 

Washington, D.C. 20044 

202-514-1170 (v) 

202-307-0054 (f) 

Paul.T.Butler@usdoj.gov

Of Counsel: 

ELIZABETH A. STRANGE 

First Assistant United States Attorney 

Case 2:18-cv-00433-DGC Document 1 Filed 02/07/18 Page 11 of 11
 	


	


	


	
 

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