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Alleged Cum-Ex fraud: German banker caught in Mallorca

2022-07-21T08:47:49.519Z


Target investigators from the BKA have determined the whereabouts of a German businessman who is considered the mastermind of cum-ex deals. After the arrest in Mallorca, the public prosecutor's office is trying to have him extradited.


Enlarge image

Spectators during a cum-ex trial in Frankfurt am Main (March 2021)

Photo: Boris Roessler / dpa

Hessian authorities have struck a blow against a suspected tax fraudster: the former head of a bank was arrested on Mallorca on suspicion of tax evasion through cum-ex transactions.

This was announced by the public prosecutor's office in Frankfurt am Main.

Between 2008 and 2010, the man is said to have created a cum-ex short sale model together with other suspects and used it several times.

As a result, more than 51 million euros in capital gains taxes and solidarity surcharge are said to have been evaded.

In addition, he is said to have transferred parts of his real estate assets in Germany to family members in 2021.

Cum-Ex has become the cipher for a complex but very far-reaching scam with which bankers and investors have cheated the German tax coffers for years.

Certain shares were moved back and forth between different owners.

This happened around stock dividend pay dates.

As a result, several »owners« had the state refund the capital gains tax for one share that had not been paid in the first place.

The person arrested is a former managing director of a domestic subsidiary of a foreign bank based in Frankfurt.

The 56-year-old was last registered in the Netherlands.

He was arrested by the Spanish criminal police.

Investigators from the Federal Criminal Police Office (BKA) had previously located the man.

The German Attorney General now wants to secure his extradition to Germany.

The cum-ex deals have not only made headlines in recent years because of the damage in the double-digit billions, but also because of the role that Olaf Scholz (SPD) allegedly played (you can find more background information here).

Source: spiegel

All business articles on 2022-07-21

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