The Public Prosecutor’s Office of Frankfurt am Main has filed charges against four men for serious tax evasion connected to Cum-Ex schemes. The authority announced this on Thursday, with the indictment being submitted to the Economic Criminal Chamber of the Frankfurt am Main District Court. The accused are a 66-year-old, a 59-year-old Briton, a 61-year-old German, and a 60-year-old US citizen.
These men are accused of developing, approving, and executing a Cum-Ex trading strategy involving Dax stocks with a bank institution based in Frankfurt am Main in 2008. The aim of the strategy was to generate non-existent deductions for capital gains tax and solidarity surcharge, which they then caused the bank institution to certify. Using these fraudulent tax certifications, the amounts were reportedly claimed and paid out without legal basis during the corporate tax assessment. This scheme is alleged to have caused damages exceeding 20 million euros to the Hessian tax treasury. Two of the accused were reportedly employed at the Frankfurt branch, while the other two worked in London.
The Public Prosecutor’s Office of Frankfurt am Main is responsible for handling Cum-Ex cases in Hesse. According to the office, seven indictments have been issued within this complex investigation. Already, twelve defendants have been convicted by courts in Frankfurt am Main and Wiesbaden, with some of these convictions being final. Furthermore, proceedings under the Administrative Offenses Act have been concluded in five other cases related to financial institutions. Investigations continue across ten extensive case complexes involving a total of 39 accused individuals.
