A former banker from former bancassurance company Fortis has been sentenced to three years and three months in prison for his role in the so-called CumEx scandal. A five-judge court in Frankfurt, Germany, convicted the man on Monday after a two-month trial.
German Frank H. transferred 51.5 million euros through illegal transactions. ABN Amro Bank, which acquired the part of Fortis that executed the transactions, returned the money to the tax authorities.
In the CumEx scam, which refers to the Latin words “cum” (with) and “ex” (without), several investors requested a refund of dividend tax from tax authorities, even though it was never paid or was paid only once. . The shares were sold around the time the dividend was paid, after which both the buyer and seller claimed a tax refund.
Many European and American banks engaged in these practices. When Germany explicitly banned CumEx trading in 2012, it would have already cost the country around €10 billion.
At the end of last year, the German inventor of the profit distribution fraud system was sentenced to eight years in prison. Hanno Berger was convicted of tax evasion between 2007 and 2011. The man was previously a tax inspector, but then became a lawyer and tax consultant.
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