Sound the Alarm: Ex-Prosecutor Brorhilker Urges Swift Action Against Financial Fraudsters
" Former State Prosecutor Brorhilker Argues for Halting the Shredder Act" - Oppose the enactment of the "paper-destruction ordinance", says ex-prosecutor Brorhilker.
Ready to dive into the world of finance and a dash of drama? Here's the lowdown on Anne Brorhilker, the fearless ex-prosecutor, who's on a mission to uncover hidden financial wrongdoings.
Taking the stage at the Club of Hamburg Economic Journalists, Brorhilker left no room for doubt. Time's a-ticking, not just because of statutes of limitations, but also due to bureaucratic shenanigans that recently shortened retention periods for booking vouchers and receipts. This year, Brorhilker's message is clear: let's catch as many Cum-Cum cases as we can, while we still have the evidence.
With over a thousand cases under her belt, Brorhilker has been on the frontlines, raiding banks, authorities, and even the offices of top politicians. She's no stranger to the ins and outs of the Cum-Ex scandal, having testified in Hamburg's inquiry into the whole brouhaha.
So, what's the big deal with Cum-Ex and Cum-Cum (yes, we know, the names sound like a bad comedy duo)? Essentially, these financial practices let banks and investors claim tax refunds they never paid—and Cum-Cum deals? Well, they're the ones where no capital gains tax is paid at all. And get this: they often go hand-in-hand. Perpetrators love to pull a fast one by engaging in a Cum-Cum deal, and then using the same stock for a Cum-Ex deal. The estimated tax loss? A whopping 40 billion euros combined, with Cum-Ex responsible for about 10 billion euros and Cum-Cum taking the lion's share.
But here's the kicker—the state's recovery rate for Cum-Cum deals? A dismal less than one percent. That's why Brorhilker's urging a crackdown on those shortened retention periods. Why? Because these laws favor the shady and not the honest. Good ol' Brorhilker put it best: "This law only helps those who have acted dishonestly, not those who follow the rules."
Now, you might be wondering why focusing on Sparkassen (savings banks) matters in all this. Well, it turns out that Sparkassen have also been dabbling in Cum-Cum and structured bond loans. And while they're legally obligated to act in the public interest, their tax trades tell a different story. In plain English, if an institution is supposed to act in the public interest, it shouldn't be slashing public coffers left and right.
So, there you have it—the financial world's got a pair of thorny issues (Cum-Cum and Cum-Ex), some shady practices going on, and a frustratingly low recovery rate. And it's up to fearless pros like Brorhilker to shine a light on the darkness and bring those guilty of the financial equivalent of daylight robbery to justice.
- Anne Brorhilker, the former prosecutor, called for immediate action against financial fraudsters, such as those engaging in Cum-Ex and Cum-Cum schemes, in light of shortened retention periods for booking vouchers and receipts.
- Brorhilker's concern lies in the low recovery rate of Cum-Cum cases, a financial practice where no capital gains tax is paid, and the twisted law that seems to favor the dishonest over the honest.
- As it turns out, savings banks (Sparkassen) have been involved in Cum-Cum and structured bond loans, which raises questions about their adherence to their obligation to act in the public interest.
