Latest news with #BonnRegionalCourt
Yahoo
03-06-2025
- Business
- Yahoo
Key Cum-Ex witness given suspended sentence by German court
One of the key players in the so-called "Cum-Ex" scandal - Germany's biggest tax-fraud case - was convicted on Tuesday. Lawyer Kai-Uwe Steck was sentenced by the Bonn Regional Court to one year and 10 months' imprisonment, suspended on probation, for five counts of serious tax fraud. The court also ordered the confiscation of around €24 million (about $27 million). "Through his actions, the defendant contributed to tax losses of almost half a billion euros," said presiding judge Sebastian Hausen. The judge said Steck was "a central figure" in the tax scandal. Steck was formerly a partner in the law firm of Hanno Berger, described as the architect of the Cum-Ex scandal. While Berger remained convinced of the legality of his actions until the end, Steck appeared remorseful, cooperated with the public prosecutor's office, and acted as a key witness. The judge said that Steck's role as a key witness had a mitigating effect on the ruling. Berger was sentenced to eight years in jail by the Bonn Regional Court in 2022. The Cum-Ex scandal involved financial players shifting shares with (cum in Latin) and without (ex) dividend rights back and forth in order to obtain refunds for taxes that had not been paid. The scam was at its peak between 2006 and 2011. According to estimates, the tax authorities were defrauded of tens of billions of euros.
Bloomberg
03-06-2025
- Business
- Bloomberg
Star Tax Scandal Witness Kai-Uwe Steck Convicted in Bonn Trial
Kai-Uwe Steck, a star witness who exposed the inner workings of the Cum-Ex scandal, was convicted and sentenced to a suspended jail term of 1 year and 10 months for his own role in the tax scheme. Steck was guilty of involvement involving over €428 million ($488 million) in losses to the German tax authorities, the Bonn Regional Court ruled on Tuesday.
