Latest on Maple Bank: Three More Ex-Bankers Charged for Serious Tax Evasion in Cum-Ex Scam
Banking officials arrested for involvement in Cum-Ex stock transactions - Former bank employees indicted for participation in Cum-Ex share transactions
Schul receipt hanging on a wall in old, dimly lit law office — the Frankfurt courtroom is buzzing with whispers of another banking scandal. This time, it's Maple Bank, a Canadian-rooted institution that met its demise in 2016 due to a crippling Cum-Ex affair.
The Frankfurt Public Prosecutor's Office has laid charges against three senior ex-managers of the Maple Bank Group, alleging their roles in a multi-million euro tax evasion scheme. According to reports, these individuals are accused of orchestrating false tax certificates to glean unjustified tax refunds totaling €374 million from 2006 to 2009.
The Maple case entangled the financial regulator, Bafin, who forced the bank's closure when it faced insolvency due to the cumbersome Cum-Ex transactions.
Top Brass under the Microscope
Also on the hot seat is the former CEO of the parent company, who doubled as the head of the supervisory board of the German Maple branch. This seasoned financier, aged 67, is suspected of initiating and supporting the Cum-/Ex transactions. The prosecution alleges that he was deeply involved in the planning and execution of these illicit deals. Accused alongside him are a 64-year-old British national and a 57-year-old German resident.
While the income details of the ex-CEO are yet to be disclosed, the Frankfurt Public Prosecutor's Office has a solid case against other former Maple Bankers who have already served jail sentences for their part in this convoluted tax evasion scheme[1]. Additional proceedings concerning Cum-Ex conspiracies are still unfolding[2].
In the uncomfortable world of Cum-Ex deals, investors exploited a loophole: trading stocks with (cum) and without (ex) dividend claims just before the dividend record date[3]. This deceptive practice cost the tax offices millions in unpaid taxes, as the state only realized the fraud in 2012 when it shuttered the loophole[3][4]. In 2021, the Federal Court of Justice declared that these transactions constitute tax evasion[4].
The Frankfurt courtroom awaits the next chapter in this intricate tale of finance and fraud.
Keywords:- Tax evasion- Investigation- Frankfurt- CEO- General Public Prosecutor's Office in Frankfurt
Sources:[1] "Former Maple Bankers Sentenced to Years in Prison" - Business Insider[2] "Cum-Ex Scandal: An Ongoing Battle" - Finance Magnates[3] "Cum-Ex Scandal Explained" - CNN[4] "Federal Court of Justice Rules Cum-Ex Transactions as Tax Evasion" - Deutsche Welle
- The charge against the three senior ex-managers of the Maple Bank Group is related to the employment policy, as their alleged roles in the multi-million euro tax evasion scheme could potentially lead to disciplinary actions or termination of employment.
- The ongoing Cum-Ex scandal, centering around Maple Bank, is a matter of general-news and crime-and-justice, involving serious financial misconduct and tax evasion, which can significantly impact the community policy and business practices.
