Actor Involved in Cum-Ex Scandal Pays Eleven Million Euros in Settlement to Government - A former actor involved in cum-ex schemes now owes the government 11 million euros.
Five years ago, a former stock trader found himself in legal hot water for his involvement in the Cum-Ex tax fraud case. His probation period had ended, but the question of how much money he owed the state remained unclear. The first verdict in this case was handed down, with the Bonn Regional Court sentencing him to 22 months of probation and ordering the confiscation of 14 million euros.
The Briton paid three million euros, but the question of whether he also had to repay the remaining eleven million euros was contested. Some argued that money paid by the Warburg Bank in relation to the transactions could be used to offset the debt. However, the Cologne Higher Regional Court ruled otherwise. The bank's payment did not apply to the Briton's outstanding debt. He has since signaled his intention to pay the remaining sum in installments.
This case is just one piece of the much larger Cum-Ex scandal, which saw financial actors manipulating shares with and without dividend claims to claim refunds for taxes that had not been paid. These schemes cost the German state a substantial sum, estimated to be in the double-digit billions of euros. The heyday of Cum-Ex was between 2006 and 2011.
The Briton and his compatriot's case eventually reached the Federal Court of Justice, which declared Cum-Ex a criminal offense in 2021. This set the stage for more investigations and proceedings, with around 130 cases now pending at the Cologne Public Prosecutor's Office. Over 1,700 suspects are involved, making this the largest tax scandal in German history.
The Briton showed remorse and provided insider information to the authorities, a rare occurrence in the Cum-Ex case. Others, like tax lawyer Hanno Berger, took a different approach. He was sentenced to eight years in prison by the Bonn Regional Court in 2023, a punishment later increased by the Wiesbaden Regional Court. Berger, considered the central architect of the tax fraud, is now serving a longer sentence.
As for the specific financial penalties and repayments in this case, the sources do not provide sufficient details. For accurate and up-to-date information, you would need to consult legal or financial news sources that cover the Cum-Ex scandal and its judicial outcomes.
The Cum-Ex tax fraud case, a significant instance of crime in the financial sector, cost the German state billions of euros. Despite paying three million euros, the Briton's obligation to repay the remaining eleven million euros was a subject of contention.