Raid on the German stock exchange over Cum-Ex

Raid on the German stock exchange over Cum-Ex

Source: Razzia bei der Deutschen Börse wegen Cum-Ex

27. August 2019, 14:59 Uhr Steuerskandal

https://www.sueddeutsche.de/wirtschaft/deutsche-boerse-cum-ex-razzia-1.4577345

 
The central office of the German stock exchange in Eschborn near Frankfurt was searched by the public prosecutor's office Cologne.
    Investigations against customers and employees are about equity transactions at the expense of the state treasury.
    The raid is part of international investigations into the Cum-Ex scandal, the largest German tax scandal, which is estimated to have cost the taxpayer more than ten billion euros.

By Jan Willmroth, Frankfurt

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The public prosecutor's office in Cologne has searched in connection with stock transactions at the expense of the state treasury on Tuesday the headquarters of the German stock exchange in Eschborn near Frankfurt am Main. Corresponding information from the Süddeutsche Zeitung was confirmed by the Group on request. In the framework of international investigations into Cum-Ex, the investigators are therefore looking for the second time in rooms and on computers of the Deutsche Börse for incriminating material. "The searches are carried out in the context of investigations against customers and employees," it says, without going into detail, in the written statement of a spokesman. You fully cooperate with the investigative authorities.

The Cologne Public Prosecutor's Office simply confirmed that "as part of the complex of proceedings for the Cum-Ex-Shops", search warrants for accused persons are ongoing. A spokesman did not want to comment on the tax secrecy.

About two years ago, Deutsche Börse was the first to come under suspicion of aiding and abetting tax evasion. In September 2017, the Cologne investigators had rooms searched at the corporate headquarters. In April 2018, it was announced that the Group division Clearstream was being investigated for one employee. This is after SZ information again this time in the focus of the investigation. Clearstream is being prosecuted under the Administrative Offenses Act. Unlike previously suspected the investigators now an unspecified number of other employees of the stock exchange. Thus, the investigation is no longer limited to the one subsidiary.

Clearstream is one of the world's largest providers of securities services and manages assets of around € 14 trillion on behalf of clients, such as custodians. Clearstream claims to handle more than 100 million transactions per year. As the securities central securities custodian, Clearstream collects and monitors all transaction data, including those suspected of being taxed.
At least one employee should have supported Cum Ex trades

The investigation files in the Cum-Ex scandal also contain numerous indications of a participation of Clearstream in the shops. First of all, this is in the nature of things: without a central depositary, stock trading is unthinkable. At least one of Clearstream's employees should, however, according to the findings of the investigators, banks have helped to handle cum-Ex transactions. In January 2018, Deutsche Börse was also heard as a side party in the proceedings, according to the current annual report of the Group. There is also the passage, because of the "early stage of the procedure" it is not possible to "predict the timing, extent and extent and consequences of any decision".

 In Cologne, the focus of cross-border investigations in the largest tax scandal in German history. Banks, stock traders and their henchmen had been trading for years on shares with (cum) and no (ex) dividends to get more capital gains tax than they had previously paid. It was only in 2012 that the legislator closed a corresponding legislative gap. Law enforcement officials see the trade structures as heavy tax evasion; in Cologne, meanwhile, investigations are under way against more than 100 accused persons. Tax inspectors estimate the total damage caused by cum-ex-business for the taxpayer to more than ten billion euros.

On Wednesday in a week begins at the district court of Bonn, the first criminal case because of Cum-Ex against two former dealer of Hypo-Vereinsbank. At the time of 2007, the bank had been intensively involved in cum-ex-deals. It had long ago cleared the table, paid its tax bill and paid a fine. For the processing of the scandal in the bank of the former boss Theodor Weimer was responsible. The 59-year-old has been CEO of Deutsche Börse since the beginning of 2018.