“Unclean Hands” Prevent UBS and Birkenfeld from Recovering Damages from Olenicoff for Malicious Prosecution

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On July 23, 2015, the Superior Court in Orange County, California, dismissed a lawsuit brought by UBS and joined by whistleblower Bradley Birkenfeld against former UBS customer Igor Olenicoff. The suit alleged malicious prosecution arising from Olenicoff’s September 2008 suit against UBS in Los Angeles federal court, which in turn alleged that UBS, Birkenfeld, and others provided fraudulent tax advice to Olenicoff. This allegedly fraudulent advice led to, among other things, Olenicoff’s criminal prosecution. The court granted summary judgment to the defendants on April 10, 2012. Just a few months later, in August 2012, UBS sued Olenicoff for malicious prosecution. In its dismissal, the Superior Court found that UBS, Birkenfeld, and Olenicoff all had “unclean hands” and that this prevented UBS and Birkenfeld suit from proceeding to trial.

 

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