More former bankers charged in Germany over cum-ex share deals

Prosecutors in the western German city of Frankfurt are pressing ahead with criminal investigations into cum-ex share deals that allegedly defrauded the federal treasury of millions of euros.

The Frankfurt Public Prosecutor's Office brought charges against three more former managers of Maple Bank on suspicion of serious tax evasion on Wednesday.

Prosecutors say the scheme involved false tax certificates with which the bank wrongfully obtained €374 million (around $416) in refunds for the years 2006 to 2009.

The institution, which has Canadian roots, was closed by the German Financial Supervisory Authority (BaFin) in 2016 because it was threatened with insolvency due to a provision for cum-ex transactions.

The cum-ex scheme involved financial investors shifting stock shares around dividend payments dates in order to aggressively exploit an apparent loophole in tax law.

Germany was particularly badly hit in the scandal, although other countries were also impacted.

The government closed the loophole in 2012. In 2021, the Federal Court of Justice (BGH) ruled that cum-ex transactions are to be considered tax evasion.

The three defendants in the recent case reportedly include the former head of the parent company, who was also chairman of the supervisory board of the German Maple subsidiary.

The 67-year-old is said to have been "involved in the planning and implementation of the cum-ex transactions at an early stage" and to have approved them.

A 64-year-old British man and a 57-year-old German man have also been charged.

Several former Maple Bank employees have already been sentenced to lengthy prison terms. Other proceedings relating to the cum-ex affair are also ongoing.