US prosecutors yesterday charged a Boston bank director with failing to report income that he kept in an HSBC Bermuda account.Michael Schiavo, a venture capitalist and director at Boston Private Bank and Trust Company, agreed to plead guilty and will also pay a civil money penalty of $76,283, according to the Department of Justice, Dow Jones reported yesterday.He faces up to five years in prison and a $250,000 fine for hiding funds in the Bermuda account and withholding taxes from the U.S. Treasury.Schiavo, 53 and the managing director of Boston-based venture consulting company SCG Consulting Group, hid $99,273 from an investment in a medical-device company in an account at HSBC Bermuda, according to a complaint filed yesterday in a Massachusetts federal court.Schiavo’s business partner, Peter Schober, wired the investment funds to the Bermuda bank from Schober’s secret account UBS AG in Switzerland in 2006, the department alleged.Between 2003 and 2008, Schiavo secretly maintained an account at the Bermuda bank with a balance ranging from $65,000 to $150,000, according to court documents. Schiavo did not pay the $40,624 he would have owed the Internal Revenue Service in taxes on that income. In 2009, after UBS disclosed records linked to its undeclared accounts to the US government, Schiavo amended his previous tax reports and paid back taxes, but did not voluntarily disclose his accounts, the department said.HSBC Bermuda made no comment on the matter yesterday.According to Bloomberg News, Schober seperately pleaded guilty on November 23 last year to failing to file a Report of Foreign Bank and Financial Accounts form over a UBS account that held at least $1 million.In February, the IRS announced a new leniency programme that offers reduced penalties to tax scofflaws who voluntarily report their offshore accounts.