Banking Bigwigs Face More Charges Over Cum-Ex Stock Scam in Frankfurt
Former Bank Personnel Indicted for Cum-Ex Stock Trading Violations - Former bank staff members accused of Cum-Ex stock fraud deals
Hold onto your hats, gang! The Frankfurt law dogs are on the hunt, digging deeper into the Cum-Ex stock scams that swindled the public coffers. The General Prosecutor's Office in Frankfurt has leveled charges against three more ex-banking honchos from the Canadian Maple Bank group, suspected of pulling off aggravated tax evasion.
According to the GPOF, the Maple affair revolves around phony tax documents that helped the bank claim €374 million in unjustified taxes from 2006 to 2009.
You might recall that the bank was stuffed and buried by the financial watchdog Bafin in 2016 because it was on its last financial legs due to Cum-Ex transactions.
To the Dock, Son!
Cum-Ex deals, which reached their peak between 2006 and 2011, took advantage of a legal loophole: around the dividend record date, participants traded stocks with (cum) and without (ex) dividend rights. This shell game deceived tax authorities into handing back unpaid taxes, a scam that was officially closed in 2012. In 2021, Germany's highest court, the Federal Court of Justice, ruled that Cum-Ex transactions equal tax evasion.
Joining the club of accused are the former CEO of the parent company, who was also the head honcho of the German subsidiary's supervisory board. The 67-year-old is accused of being an early bird in the plot and giving the green light to the Cum-/Ex transactions. Also on the hook are a 64-year-old Brit and a 57-year-old German.
Several ex-Maple bankers have already been hit with multi-year jail sentences, and the Cum-Ex drama continues to unravel with more legal proceedings underway.
- Cum-Ex scandal
- tax evasion
- investigation
- Frankfurt am Main
- CEO
- General Prosecutor's Office Frankfurt
Sources: [1] Frankfurt Public Prosecutor's Office Brings Charges Against Three Former Maple Bank Managers for Tax Evasion [2] The Continuing Cum-Ex Saga: Legal Action Across Europe
- The Cum-Ex scandal, which involved tax evasion through phony tax documents and unfairly claimed €374 million in taxes, is under investigation by the General Prosecutor's Office in Frankfurt.
- The ongoing Cum-Ex saga sees high-profile figures, including a former CEO and two other individuals, facing charges of aggravated tax evasion related to their involvement in the business activities of the Canadian Maple Bank group in Frankfurt.
