Maple Bank's Top Brass Under Fire: Another Trio of Former Managers Charged Over Cum-Ex Scam
Multiple ex-bank employees face new accusations regarding Cum-Ex stock transactions. - Ex-bank workers indicted for Cum-Ex stock transactions fraud
Here's the skinny: Frankfurt's coppers are hot on the trail of another group of ex-bankers from Maple Bank, accused of ripping off the government through the infamous Cum-Ex stock tricks. The General Prosecutor's Office in Frankfurt has slapped three more bank bigwigs with charges for allegedly masterminding a tax heist worth €374 million between 2006 and 2009.
Dive a lil' deeper, and you'll find that the Maple case revolves around a sleazy scheme involving counterfeit tax certificates, used to dupe the government into doling out hefty refunds on non-existent taxes claimed by the bank.
Now, the Canadian-rooted bank, which met its demise in 2016 after a financial regulator Bafin hauled it in for insolvency, had a taste of the Cum-Ex transactions' bitter pill.
Top Gun on Trial
Remember those Cum-Ex deals? They were the talk of the town between 2006 and 2011, causing quite a storm by exploiting a legal loophole. The routine involved trading stocks with (cum) and without (ex) dividend claims before and after the dividend record date. This con artistry tricked tax authorities into granting bogus refunds on unpaid taxes. But, alas, in 2012, the authorities got wise, and in 2021, the Federal Court of Justice confirmed that Cum-Ex dealings amounted to fraud.
In the latest twist, the three accused crooks include the former head honcho of the parent organization, who happened to be the supervisory board chairman of the German Maple subsidiary. The senior gentleman, aged 67, is now facing charges for being a key player in the planning and execution of the Cum-Ex/Ex scam. Two others on the hook are a 64-year-old Brit and a 57-year-old German.
Previously, several ex-Maple Bankers have been dished out lengthy prison sentences, and other Cum-Ex related proceedings continue to unfold.
- coppers: police officers
- tax heist: large-scale tax fraud
- investigation: inquiry into illegal activities
- Frankfurt am Main: major city in Germany
- Top Gun: nebulous reference to a high-ranking executive, using a term from the popular movie Top Gun
- General Prosecutor's Office Frankfurt: prosecutor's office located in Frankfurt, Germany
- fraud: intentionally deceptive or false activities, often illegal
[1] For more context: The Frankfurt Public Prosecutor's Office consistently pursues investigations into Cum-Ex stock deals, reflecting a persistent focus of German authorities on these financial practices.[2] The closed loophole in Cum-Ex transactions was deemed illegal by the Federal Court of Justice in 2021.[3] Cum-Cum transactions and related abusive practices continue to be scrutinized by German tax authorities, with multiple convictions and on-going litigation efforts to recover taxes.
- The General Prosecutor's Office in Frankfurt, engaged in ongoing investigations regarding Cum-Ex stock deals, has charged three former high-ranking employees of Maple Bank, including the former head of the parent organization, with allegedly participating in a tax heist worth €374 million.
- The banking and insurance sector, specifically within the Maple Bank case, is under scrutiny as Frankfurt's police are investigating ex-bankers suspected of fraudulently masterminding a tax heist using counterfeit tax certificates.
- These latest charges come after several former Maple Bank employees were convicted for committing fraud through Cum-Ex transactions, highlighting the need for tightened employment policies within the finance industry to prevent such illegal activities.
