Rulings issued by courts - Imprisonment for bank co-founder over cum-ex tax deception
In the Hamburg-based Varengold Bank, one of the founding members has received a three-year and two-month prison sentence due to his role in fraudulent cum-ex share transactions. The Bonn Regional Court delivered this ruling on Tuesday (case number 65 KLs 1/23) for serious tax evasion charges. The court ruled slightly shorter than the prosecution's demand of three years and four months.
The 50-year-old ex-board member of the bank and investment company was implicated in four cum-ex cases from fall 2009 to 2011, where financial players wanted to be reimbursed or credited with approximately 93 million euros even though they hadn't paid their taxes. As per the court's decision, the defendant is required to forfeit 1.5 million euros - this sum represents the personal profit they made from the cum-ex transactions.
This is the eighth cum-ex conviction at the Bonn Regional Court - the first verdict was in 2020 (upheld in 2021 by the Federal Court of Justice). Since then, cum-ex is widely considered a criminal offense, rather than just a daring rip-off. This convoluted business model, which flourished from 2006 to 2011, defrauded the German government and the general public out of billions of euros. The probe into and legal proceedings for these cases are expected to continue for years.
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Source: www.stern.de
