Maple Bank Ex-Executives Nabbed in Cum-Ex Stock Fraud Scandal
Additional bank employees indicted for Cum-Ex dividend manipulation schemes - Former Bank Employees Accused of Involvement in Cum-Ex Stock Transaction Scams
Skip the jargon, let's dive in!
The Frankfurt prosecution is continuing its investigation into Cum-Ex stock scams that drained millions from the government coffers. Three more ex-bosses from the Maple Bank group, a Canadian-rooted institution, have been charged with aggravated tax evasion.
According to the General Prosecutor's Office, the Maple case hinges on phony tax certificates used to claim a massive €374 million in undeserved refunds between 2006-2009. The bank crumbled in 2016 due to the Cum-Ex transactions, causing its regulators to shut it down.
Here's a lowdown on Cum-Ex deals: They thrived between 2006-2011 when investors manipulated a tax law loophole. The deals took place before the dividend record date, with some trading stocks with dividend claims (cum) and others without (ex). This fake game tricked tax authorities into double-refunding unpaid taxes. The scam was finally shut in 2012, and the Federal Court of Justice ruled in 2021 that these deals constitute tax evasion.
The three newly charged suspects include the former chief executive of the parent company, who was also the head of the German subsidiary's board. The 67-year-old is accused of kickstarting and approving the Cum-Ex transactions. Also in hot water are a 64-year-old Brit and a 57-year-old German.
It's worth noting that some ex-Maple Bankers have already gotten jail sentences for lengthy terms, and more proceedings related to the Cum-Ex scheme are ongoing.
- prosecution
- tax evasion
- investigation
- Frankfurt am Main
- CEO
- General Prosecutor's Office Frankfurt
Additional Insights:
- Cum-Ex and Cum-Cum Transactions: These notorious deals are linked to dividend arbitrage schemes that exploited German tax laws. They led to multiple parties claiming tax refunds for dividends that were only paid once, creating substantial financial losses for the German government. Cum-Cum transactions, similar in nature, involve non-resident investors transferring shares to German entities to claim tax refunds or credits. This structure is now considered abusive by German authorities.
- Maple Bank Case: The search results didn't provide specific details about Maple Bank's role in Cum-Ex or Cum-Cum transactions. For more context on their involvement in these schemes, further references to Maple Bank's activities would be needed.
- Legal and Regulatory Responses: The ongoing investigations and legal actions against ex-bankers and financial institutions involved in Cum-Ex and Cum-Cum schemes mark efforts by German authorities to combat tax evasion. Significant legal progress has been made with the Frankfurt Higher Regional Court allowing charges to proceed against former executives for tax evasion related to Cum-Cum transactions.
- The investigation into Cum-Ex stock scams in Frankfurt unveiled that the Maple Bank case revolves around the use of phony tax certificates, which led to aggravated tax evasion worth €374 million between 2006-2009.
- The three charged ex-bosses from the Maple Bank group, including the former CEO, are charged with initiating and approving Cum-Ex transactions, which are considered tax evasion under German law.
