Latest news with #Cum-Ex
Euronews
3 days ago
- Business
- Euronews
Key figure in Germany's largest tax fraud case avoids jail time
Kai-Uwe Steck, a key figure in a massive tax fraud scheme that plagued Germany until 2012, has been convicted for his role in the scandal. Steck, who has cooperated with the authorities in recent years, received a suspended jail sentence of one year and 10 months, far less than the three years and eight months demanded by the prosecution. The former lawyer was also ordered to repay €24 million, €11 million of which has already been returned. As a "central figure" in the fraud scheme Steck contributed to losses of more than €428 million to the German tax authorities, according to the presiding judge in the case at Bonn Regional Court. The 53-year-old was a tax lawyer who worked alongside Hanno Berger, the so-called "mastermind" of the scandal that became known in Germany as "Cum-Ex". Like Berger, Steck was accused of designing and implementing complex share transactions that allowed multiple parties to claim illegitimate tax refunds on dividend payments. Despite the significant role he played in the scandal between 2007 and 2011, Steck's cooperation with authorities and his role as a whistleblower in the case meant he avoided a stricter sentence. His former colleague Berger was convicted to eight years in prison in 2022. The "Cum-Ex" scandal — considered to be the biggest tax fraud case in German history — prompted an avalanche of lawsuits and cast a shadow on politicians, including former German Chancellor Olaf Scholz. Scholz was accused of protecting a local bank — during his time as the mayor of Hamburg — that was found guilty of participating in the scheme. The former German leader has always denied any wrongdoing, with prosecutors deciding to drop the case against him due to insufficient evidence. German authorities have so far recovered approximately €3.4 billion through several convictions and court cases. However, tens of billions of euros are still missing. Other investigations into the remaining lost funds are ongoing. The British government has threatened legal action against Russian oligarch Roman Abramovich to ensure that the £2.5 billion (€2.97bn) proceeds from his sale of Chelsea Football Club reach Ukrainian victims of Russia's all-out war, now in its fourth year. 'The government is determined to see the proceeds from the sale of Chelsea Football Club reach humanitarian causes in Ukraine, following Russia's illegal full-scale invasion," Chancellor Rachel Reeves and Foreign Secretary David Lammy said in a joint statement on Tuesday. 'We are deeply frustrated that it has not been possible to reach an agreement on this with Mr Abramovich so far,' they added. 'While the door for negotiations will remain open, we are fully prepared to pursue this through the courts if required, to ensure people suffering in Ukraine can benefit from these proceeds as soon as possible.' Abramovich, who has denied allegations that he is a close associate of Russian President Vladimir Putin, was sanctioned in the wake of Moscow's full-scale invasion of Ukraine in February 2022. The oil and gas tycoon sold Chelsea in May 2022 to a consortium led by US investor Todd Boehly and Clearlake Capital, after the British government allowed him to part with the club as long as he did not personally benefit from the deal. The £2.5bn net proceeds have been frozen ever since, but still legally belong to Abramovich. They cannot be moved without a licence from the UK Office of Financial Sanctions Implementation. Three years after Abramovich sold the London-based club, the UK government has threatened to sue him amid an ongoing dispute about how the money should be spent. While the British government insists that all the money must go to humanitarian causes in Ukraine, Abramovich has said it should be 'for the benefit of all victims of the war in Ukraine', including people in Russia. Since Putin's full-scale invasion of Ukraine, the UK has been one of Kyiv's closest allies. In January, London pledged to give it an extra £4.5bn (€5.34bn) in military support.
Yahoo
3 days ago
- 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
4 days ago
- 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.
Bloomberg
21-05-2025
- Business
- Bloomberg
Hedge Fund Founder's German Tax Fraud Money Laundering Charges Dropped
German money laundering charges against hedge fund founder Sanjay Shah in a €330 million ($374 million) case were dropped after his conviction in a similar Danish prosecution. A Hamburg court agreed to throw out the case with a view to the Danish proceedings, Shah's German lawyer Björn Gercke said in an interview. Shah is also facing a fresh set of separate Cum-Ex charges from Cologne prosecutors which aren't affected by the decision.
Bloomberg
29-01-2025
- Business
- Bloomberg
Convicted Hedge Fund Trader Wins Cut in Prison Term in Tax Scandal Case
A hedge fund trader convicted of fraud over sham Cum-Ex trades in a massive scandal that cost Denmark 's treasury a total of 12.7 billion kroner ($1.8 billion) had his prison sentence reduced by a Danish appeals court. Guenther Klar, who was originally handed six years in prison had his sentence reduced to three-and-a-half years, according to a statement by the court. It was shortened because a Belgian court sentenced him to more than four years over similar crimes and he shouldn't serve double time.
