Maple Bank: More Ex-Executives Indicted Over Fraudulent Cum-Ex Deals
Former finance professionals face additional accusations for involvement in Cum-Ex dividend arbitrage scams - Bank employees other than the initial accused also allegedly involved in fraudulent Cum-Ex stock trades
Let's dive into the latest happenings in the ongoing criminal investigation into Cum-Ex stock deals, a scheme that defrauded the government. The Financial Prosecutor's Office in Frankfurt has slapped charges on three additional ex-bosses of the Canadian Maple Bank Group. They stand accused of aggravated tax evasion in connection with the Maple case.
In this case, the bank is said to have used phony tax certificates to steal a whopping 374 million euros for the years 2006 to 2009, according to the Financial Prosecutor's Office. The bank, with its roots in Canada, was shuttered by financial regulator Bafin back in 2016 due to insolvency caused by Cum-Ex transactions.
The big cheese, the former CEO, is facing charges too. The 67-year-old is alleged to be deeply involved in the planning and implementation of the Cum-/Ex transactions during their early stages and also approved them. Other suspects include a 64-year-old British citizen and a 57-year-old German.
Known as the Cum-Ex scandal, these shady deals peaked between 2006 and 2011. Investors were taking advantage of a loophole, trading stocks with and without dividend claims around the dividend record date, causing tax authorities to shell out unpaid taxes. Changes were made in 2012, shutting down this loophole, and in 2021, the Federal Court of Justice ruled that Cum-Ex transactions equate to tax evasion.
Several ex-Maple Bankers have already seen the inside of a prison cell for multiple years. More proceedings related to the Cum-Ex mess are still pending.
- Financial Prosecutor's Office
- Cum-Ex transactions
- Investigation
- Frankfurt, Germany
- CEO
- Former Maple Bank executives
Enrichment Data:The recent charges against the ex-bosses of Maple Bank are part of a broader campaign by German authorities to crack down on abusive tax practices such as Cum-Cum transactions, which have been deemed tax evasion. Efforts to hold individuals accountable for their roles in such schemes are ongoing, with significant tax recovery and several convictions in recent years.
The Cum-Ex scandal, initiated in Germany, revolves around complex tax evasion schemes where banks claimed refunds for withholding taxes on dividend payments by exploiting loopholes surrounding share trading around dividend dates. The focus has since expanded to include Cum-Cum transactions involving non-resident investors transferring shares to German entities for tax advantages.
- The Financial Prosecutor's Office in Frankfurt, amidst a broader campaign against abusive tax practices like Cum-Cum transactions, has indicted more ex-bosses of Canada's Maple Bank Group for their roles in the Maple case, involving aggravated tax evasion through Cum-Ex transactions.
- The Cum-Ex scandal, originally initiated in Germany, is a complex tax evasion scheme where finance and banking-and-insurance institutions, such as Maple Bank, claimed refunds for withholding taxes on dividend payments by exploiting policy-and-legislation loopholes surrounding share trading around dividend dates.
- In politics, the Cum-Ex scandal has prompted a response from law enforcement and regulatory bodies, with multiple ex-Maple Bank executives facing conviction and imprisonment for their involvement in these fraudulent transactions, considered a form of crime-and-justice.
- The alleged criminal activities of Maple Bank executives and the Cum-Ex transactions have had significant implications for the community policy, as the bank's actions led to a large-scale tax evasion, amounting to 374 million euros between 2006 and 2009, potentially impacting the general-news and business sectors as well.
