Latest news with #Steck
Daily Maverick
31-07-2025
- Business
- Daily Maverick
Milestone conviction in multibillion ‘cum-ex' tax fraud tightens noose around Investec
A central figure in the epic 'cum-ex' tax fraud scheme was convicted in June after cooperating with prosecutors. At the height of the scheme, Dr Kai-Uwe Steck advised Investec and others on how to claim fraudulent tax refunds from European governments. Investec has acknowledged what it calls the 'historical involvement' of its employees, but denies wrongdoing. The conviction of German lawyer and financial engineer Dr Kai-Uwe Steck, a key player in Europe's largest tax fraud scheme, may intensify scrutiny of Investec Bank's allegedly major role in financing and profiting off fraudulently procured tax refunds worth millions of euros. AmaBhungane has reported extensively on the 'cum-ex' scam, which drew in a number of banks and other financial service providers around the world. The basic mechanism of the scam was to claim tax refunds on dividend tax that was never paid. This required large amounts of upfront funding, which Investec provided to some key fraudsters. Read more about the complex mechanics of the scheme here. On 3 June, the Bonn Regional Court sentenced Steck to one year and 10 months in prison, suspended for three years. He was convicted on five counts of tax evasion related to cum-ex transactions. Steck played a central role in setting up multiple fund structures that were used in the scheme, as well as complex offshore payment systems to launder the illicit profits. According to the court ruling, Steck admitted that dividend tax refunds were obtained without actual tax payments. He personally earned €23-million (about R448.5-million) from these trades. Steck cooperated extensively with German authorities, helping to recover more than €660-million (about R12.87-billion) in fraudulent tax refunds. As part of his probation, he is required to continue repaying millions of euros. Both Steck's conviction and his continuing cooperation with authorities could have repercussions for Investec – if not legal, then most certainly reputational. A massive leak of documents around the fraud that formed the basis of our previous reporting on the story included extensive evidence of the involvement of Investec's UK and Ireland arm, as well as some direct interactions between Investec staff and Steck. Investec's investment in cum-ex AmaBhungane previously reported in a three-part series that Investec was also involved in facilitating deals where US pension funds were used for similar cum-ex scams. We additionally revealed that Investec supported infamous trader Frank Vogel's company MF Finance with up to €12.7-billion (about R263-billion) between 2011 and 2015. One particularly revealing detail in the leak is a meeting that took place on 19 January 2010 at the Frankfurt offices of the now-defunct law firm Dewey & LeBoeuf in Germany. According to documents seen by amaBhungane, Investec's then-head of equity finance in Dublin, Loman Gallagher, and deal structurer Michael Byrne attended the meeting alongside Steck, convicted cum-ex figure Hanno Berger and representatives of Zeta Financial Partners, a boutique advisory firm that worked on tax arbitrage structures. The leaked documents describe the 'cum-ex nature' of the trades being 'openly discussed from the onset', with all parties 'very familiar' with the mechanisms. The documents also indicate that some guarantees and decisions were discussed with, or escalated to, Investec's head office in Johannesburg, implying high-level awareness of the deals. Our investigation suggested that Investec had been acting with the apparent approval of senior Investec managers, including now-deceased executive director Alan Tapnack. Among the leaked documents there is also a legal opinion that Investec commissioned from Steck. Following Steck's conviction, amaBhungane sent questions to Investec, including whether the January 2010 meeting took place as described, whether Gallagher and Byrne had sought or received approval from the bank's leadership, and whether any employees had since been charged or subpoenaed. The bank did not answer specific questions, instead referring amaBhungane to its March 2025 financial statements and a press release issued on 14 September 2024. Per the financial statements: 'The group also holds a provision that reflects the estimate of financial outflows that could arise as a result of investigations concerning historical German dividend tax arbitrage transactions.' The size of this provision is not, however, disclosed to shareholders. Investec does admit though that its 'historical involvement in German dividend tax arbitrage transactions (cum-ex) continues to pose a significant risk. Ongoing investigations by the Cologne Public Prosecutor and the German Federal Tax Office create uncertainty around the ultimate financial impact, potentially affecting provisions and disclosures in the financial statements. While the group is cooperating with authorities, the ongoing investigations and potential for civil litigation create significant uncertainty.' For South Africans, the unfolding scandal matters not just because of Investec's prominence, but also because it raises broader questions about the governance practices of financial institutions operating across borders. Steck's sentencing is one of many. His cooperation, along with the mounting legal momentum in Germany, may yet lead to more prosecutions and further disclosures. For Investec, the legal risk remains unresolved. Its financial statements acknowledge a 'significant risk' and 'uncertainty'. But the reputational damage – and questions about ethical accountability – may prove even harder to contain. Whether Investec acted knowingly or recklessly is now the question that regulators, courts and perhaps the public will be forced to confront.
San Francisco Chronicle
18-07-2025
- General
- San Francisco Chronicle
Award-winning former AP photographer Jo Ann Steck is remembered for her wit and leadership
Award-winning photo journalist Jo Ann Steck — who broke barriers in male-dominated newsrooms by capturing some of the most notable moments in recent United States history — has died. She was 73. Steck died on July 11 after a yearslong battle with ovarian cancer, according to her former Associated Press colleague and longtime friend Dan Hansen. Steck's three-decade career spanning The Associated Press, The New York Times and the White House, took her all over the country and world — and thousands of miles away from where she was born in Hershey, Pennsylvania. She used her shrewd judgment and vision to lead teams of award-winning journalists to capture both profound joy and unspeakable tragedy alike, documenting natural disasters, the 2003 U.S.-led invasion of Iraq, historic sporting events and more. But those who worked with Steck, often calling her 'Jodie,' remember her for her unique ability to lead. Steck worked for local outlets in Arizona, where she went to college at Arizona State University, before joining the AP in Los Angeles in 1980. Amy Sancetta remembers meeting Steck in 1987, when Steck led Sancetta and a small team of journalists to cover a plane crash in Detroit for the AP. Racing to the scene, Steck coordinated the team's efforts with walkie-talkies to swiftly deliver images of the heartbreaking event to the world. Despite the rush, Sancetta said, Steck never forgot to make each person feel valued. 'She saw a lot of really horrific stuff, but she found ways as a group to make us laugh and remind us of our humanity," Sancetta said. From then on, Steck became a mentor to Sancetta, who was still a relatively new employee and one of the very few women in the newsroom. Sancetta said her feelings towards Steck were not unique; Steck's bold humor, clear vision and unmistakable moxie made her a trailblazer for many young women breaking into the male-dominated field. 'As a young photographer, she found a way to make you feel like you belonged,' Sancetta said. 'She paved a path for an awful lot of us." Steck went on to work at The New York Times, The Santa Rosa Press Democrat and The Orange County Register, where she ushered in a new era of digital photography, before returning to the AP. To this day, her colleagues at the AP from that time recall admiringly how well she continued to cover the biggest events across the United States, such as the O.J. Simpson murder case and the Super Bowl. Later, Steck was the deputy director of photography at The Dallas Morning News, where she led a team of photographers who earned a Pulitzer Prize for Breaking News Photography in 2004 for coverage of the invasion in Iraq. Cheryl Diaz Meyer, one of two photographers who took the photos that won the prize, said that Steck was exceptionally methodical and made sure that all photos were presented with nuance. 'You knew that once Jodie touched it, it was good,' Meyer said. Steck's work was recognized far beyond the newsroom. She served as the White House deputy director of photography under former President George W. Bush in his second term, from 2005 to 2009. 'She got to know everybody,' recalled Dan Hansen, a photographer who worked with Steck at both the AP and the White House. Hansen said Steck would remember the names of every single person she met, ranging from interns to White House cleaning staff to high-ranking members of Bush's administration. Hansen, who met Steck when the two were students at Arizona State University in 1976, said that Steck was like that the whole time he knew her. 'She would go into a room, and she would come out with five new friends,' he said. 'Because she was so funny, she was so charming — she just had that ability.' Steck retired in Port Orange, Florida, where she was a competitive pickleball player, according to an obituary provided by her family. She is survived by her partner, Susan Matthews, and her son.
Winnipeg Free Press
18-07-2025
- General
- Winnipeg Free Press
Award-winning former AP photographer Jo Ann Steck is remembered for her wit and leadership
Award-winning photo journalist Jo Ann Steck — who broke barriers in male-dominated newsrooms by capturing some of the most notable moments in recent United States history — has died. She was 73. Steck died on July 11 after a yearslong battle with ovarian cancer, according to her former Associated Press colleague and longtime friend Dan Hansen. Steck's three-decade career spanning The Associated Press, The New York Times and the White House, took her all over the country and world — and thousands of miles away from where she was born in Hershey, Pennsylvania. She used her shrewd judgment and vision to lead teams of award-winning journalists to capture both profound joy and unspeakable tragedy alike, documenting natural disasters, the 2003 U.S.-led invasion of Iraq, historic sporting events and more. But those who worked with Steck, often calling her 'Jodie,' remember her for her unique ability to lead. Steck worked for local outlets in Arizona, where she went to college at Arizona State University, before joining the AP in Los Angeles in 1980. Amy Sancetta remembers meeting Steck in 1987, when Steck led Sancetta and a small team of journalists to cover a plane crash in Detroit for the AP. Racing to the scene, Steck coordinated the team's efforts with walkie-talkies to swiftly deliver images of the heartbreaking event to the world. Despite the rush, Sancetta said, Steck never forgot to make each person feel valued. 'She saw a lot of really horrific stuff, but she found ways as a group to make us laugh and remind us of our humanity,' Sancetta said. From then on, Steck became a mentor to Sancetta, who was still a relatively new employee and one of the very few women in the newsroom. Sancetta said her feelings towards Steck were not unique; Steck's bold humor, clear vision and unmistakable moxie made her a trailblazer for many young women breaking into the male-dominated field. 'As a young photographer, she found a way to make you feel like you belonged,' Sancetta said. 'She paved a path for an awful lot of us.' Steck went on to work at The New York Times, The Santa Rosa Press Democrat and The Orange County Register, where she ushered in a new era of digital photography, before returning to the AP. To this day, her colleagues at the AP from that time recall admiringly how well she continued to cover the biggest events across the United States, such as the O.J. Simpson murder case and the Super Bowl. Later, Steck was the deputy director of photography at The Dallas Morning News, where she led a team of photographers who earned a Pulitzer Prize for Breaking News Photography in 2004 for coverage of the invasion in Iraq. Cheryl Diaz Meyer, one of two photographers who took the photos that won the prize, said that Steck was exceptionally methodical and made sure that all photos were presented with nuance. 'You knew that once Jodie touched it, it was good,' Meyer said. Steck's work was recognized far beyond the newsroom. She served as the White House deputy director of photography under former President George W. Bush in his second term, from 2005 to 2009. 'She got to know everybody,' recalled Dan Hansen, a photographer who worked with Steck at both the AP and the White House. Hansen said Steck would remember the names of every single person she met, ranging from interns to White House cleaning staff to high-ranking members of Bush's administration. Hansen, who met Steck when the two were students at Arizona State University in 1976, said that Steck was like that the whole time he knew her. 'She would go into a room, and she would come out with five new friends,' he said. 'Because she was so funny, she was so charming — she just had that ability.' Steck retired in Port Orange, Florida, where she was a competitive pickleball player, according to an obituary provided by her family. She is survived by her partner, Susan Matthews, and her son. ___ Riddle reported from Montgomery, Alabama. Riddle is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.
Hamilton Spectator
18-07-2025
- General
- Hamilton Spectator
Award-winning former AP photographer Jo Ann Steck is remembered for her wit and leadership
Award-winning photo journalist Jo Ann Steck — who broke barriers in male-dominated newsrooms by capturing some of the most notable moments in recent United States history — has died. She was 73. Steck died on July 11 after a yearslong battle with ovarian cancer, according to her former Associated Press colleague and longtime friend Dan Hansen. Steck's three-decade career spanning The Associated Press, The New York Times and the White House, took her all over the country and world — and thousands of miles away from where she was born in Hershey, Pennsylvania. She used her shrewd judgment and vision to lead teams of award-winning journalists to capture both profound joy and unspeakable tragedy alike, documenting natural disasters, the 2003 U.S.-led invasion of Iraq, historic sporting events and more. But those who worked with Steck, often calling her 'Jodie,' remember her for her unique ability to lead. Steck worked for local outlets in Arizona, where she went to college at Arizona State University, before joining the AP in Los Angeles in 1980. Amy Sancetta remembers meeting Steck in 1987, when Steck led Sancetta and a small team of journalists to cover a plane crash in Detroit for the AP. Racing to the scene, Steck coordinated the team's efforts with walkie-talkies to swiftly deliver images of the heartbreaking event to the world. Despite the rush, Sancetta said, Steck never forgot to make each person feel valued. 'She saw a lot of really horrific stuff, but she found ways as a group to make us laugh and remind us of our humanity,' Sancetta said. From then on, Steck became a mentor to Sancetta, who was still a relatively new employee and one of the very few women in the newsroom. Sancetta said her feelings towards Steck were not unique; Steck's bold humor, clear vision and unmistakable moxie made her a trailblazer for many young women breaking into the male-dominated field. 'As a young photographer, she found a way to make you feel like you belonged,' Sancetta said. 'She paved a path for an awful lot of us.' Steck went on to work at The New York Times, The Santa Rosa Press Democrat and The Orange County Register, where she ushered in a new era of digital photography, before returning to the AP. To this day, her colleagues at the AP from that time recall admiringly how well she continued to cover the biggest events across the United States, such as the O.J. Simpson murder case and the Super Bowl. Later, Steck was the deputy director of photography at The Dallas Morning News, where she led a team of photographers who earned a Pulitzer Prize for Breaking News Photography in 2004 for coverage of the invasion in Iraq. Cheryl Diaz Meyer, one of two photographers who took the photos that won the prize, said that Steck was exceptionally methodical and made sure that all photos were presented with nuance. 'You knew that once Jodie touched it, it was good,' Meyer said. Steck's work was recognized far beyond the newsroom. She served as the White House deputy director of photography under former President George W. Bush in his second term, from 2005 to 2009. 'She got to know everybody,' recalled Dan Hansen, a photographer who worked with Steck at both the AP and the White House. Hansen said Steck would remember the names of every single person she met, ranging from interns to White House cleaning staff to high-ranking members of Bush's administration. Hansen, who met Steck when the two were students at Arizona State University in 1976, said that Steck was like that the whole time he knew her. 'She would go into a room, and she would come out with five new friends,' he said. 'Because she was so funny, she was so charming — she just had that ability.' Steck retired in Port Orange, Florida, where she was a competitive pickleball player, according to an obituary provided by her family. She is survived by her partner, Susan Matthews, and her son. ___ Riddle reported from Montgomery, Alabama. Riddle is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
Euronews
03-06-2025
- 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.
