Here’s the story:
The date of the Bloomberg article is older, so this is most likely when Mr. Reiss was charged. He was sentenced on 11 Dec. 2012 for a 1,2+ million FBAR penalty. I could be wrong, but this appears to be the first DOJ case against a non-US Citizen working in America was charged. The rest had been mostly a few US born resident-nationals, and many foreign naturalized US citizens, some of who even earned their money abroad and paid taxes abroad, yet the IRS is desperate to get their piece.
Based on what I know about the FACTA, if a foreign national is living in America, generally foreign banks generally don’t want to risk servicing this customer that is working/residing in America. This means, essentially, that any foreigner who plans to live and work in America will be forced to move his or her banking to America, or risk getting hit with FBAR penalities. Is that worth it? I don’t think so!
According to the Bloomberg article, Mr. Reiss is a cancer researcher working at Princeton. It goes on to say that he could be “deported” after his sentencing. Go ahead America, shoot yourself in the foot yet again!