A board member at Boston Private Bank and Trust Corp is planning to plead guilty to hiding funds illegally at HSBC Bank Bermuda, Reuters reported, citing federal prosecutors.

Michael Schiavo is set to plead guilty to one count of failing to report a foreign account, after he “quietly refiled” his tax returns for a number of years, accounting for money held at HSBC Holdings, court records reportedly show.

Despite having around $150,000 in an offshore account, Schiavo failed to participate in two Internal Revenue Service amnesty programmes, according to the news service. Under the plea agreement, for which a date remains to be set, he will pay a $76,283 civil penalty. He also faces up to five years in prison.

By siphoning off income from an investment into the HSBC account, Schiavo evaded around $40,000 in taxes. He did this with a business partner Peter Schober, who had an offshore account at UBS, the report says.

At the time of failing to report the account Schiavo was a partner and the chief financial officer of Kodiak Venture Partners. As well as being a board member of Boston Private, he now reportedly works as a managing director at SCG Consulting Group.

The plea is part of an ongoing crackdown by the US government on tax evasion, the most high-profile example of which is the $780 million fine UBS agreed to pay in 2009 to settle civil and criminal charges alleging that it helped thousands of US wealthy citizens to evade US taxes.