UBS whistleblower awarded $104m - FT.com A former UBS banker was awarded $104m under a whistleblower program for revealing a tax evasion scheme that cost the US government billions of dollars and has resulted in criminal charges against Swiss banks and top executives. The US Internal Revenue Service granted the award - believed to be the largest bestowed on a whistleblower - to Bradley Birkenfeld, the former banker with the self-described moniker of "Tarantula," who reported allegations of tax evasion at UBS to US authorities in 2007. He is widely credited with uncovering the scheme, which led to UBS pleading guilty to criminal charges and paying $780m to settle with the Department of Justice. As a result of the investigation, the US government has collected $5bn in back-taxes. "The IRS today sent 104 million messages to whistleblowers around the world that there is now a safe and secure way to report tax fraud and that the IRS is now paying awards," Mr Birkenfeld's lawyers said. In granting the award, the IRS said: "The comprehensive information provided by the whistleblower was exceptional in both its breadth and depth. While the IRS was aware of tax compliance issues related to secret bank accounts in Switzerland and elsewhere, the information provided by the whistleblower formed the basis for unprecedented actions against UBS. The reward, which amounts to two cents for every dollar collected, is being heralded by whistleblower advocates. The payday comes six weeks after Mr Birkenfeld was released from prison after serving 31 months of a 40-month prison sentence for helping a billionaire property developer avoid paying $7m in taxes. He is subject to home confinement until November, the US Bureau of Prisons said. He did not receive permission to attend the press conference announcing the award, a spokeswoman for one of his attorney's said. Prosecutors filed criminal charges against Mr Birkenfeld, and in 2010 he agreed to plead guilty to one count of conspiracy. At the time the DoJ was criticised for sending the wrong message to would-be informants. The award comes as US officials are trying to encourage more informants to come forward. Congress created a whistleblower programme as part of the Dodd Frank law to encourage Wall Street and corporate insiders to report suspicions of fraud to the Securities and Exchange Commission. The programme was modelled after the IRS, and informants can receive up to 30 per cent of the recovery. Last month the SEC issued its first reward of $50,000 in a fraud that netted $1m in penalties. Since the UBS settlement, US prosecutors have filed criminal charges against several bankers at UBS, Credit Suisse and Julius Baer, dozens of US citizens and Wegelin, the private Swiss bank. The scope of the wide-ranging investigation is moving beyond Swiss banks to others in Israel and elsewhere in Asia, people familiar with the matter have said. Wegelin and most of the bankers have denied any wrongdoing.