Leonid Zaltsberg, who had previously played football for the Soviet Unionâs national football team, admitted that he filed a false tax return in 2003.
He also said that he failed to report the transfer of funds to a Panamanian account, which he set up in 2000 with the help of an unnamed Swiss banker and a lawyer from outside of the US.
James DiPietro, a lawyer for Mr Zaltsberg, told Reuters: âHe is sincerely remorseful, and knows that he made a terrible mistake.
âI'll be making every effort humanly possible to get him a sentence without prison time.â
The 76 year-old defendant agreed to pay a total penalty of $1.3 million and could also face a three-year jail sentence as a result of not disclosing details of the account.
In 2009, UBS admitted to helping clients avoid paying tax between 2000 and 2007.
The financial services provider subsequently agreed to pay a $780 million penalty and to hand over details of a number of accounts to the tax authorities.
By Jim Ottewill