Unraveling the Cum-Ex Saga: "He Was the Main Man" - Probation for Cum-Ex Whistleblower
A key player recently received probation for his role in the Cum-Ex tax fraud scandal.
Financial tricksters have swindled billions from the German government using the Cum-Ex ruse, and lawyer Kai-Uwe Steck was a leading player in this tax racket. Despite his significant role, he ducked a prison sentence due to remorse and collaboration with the authorities.
Recently, the Bonn Regional Court convicted one of the key figures in the Cum-Ex tax scam. Lawyer Kai-Uwe Steck was given a one-year, ten-month suspended sentence for five counts of aggravated tax fraud. The court also ordered the seizure of around €24 million.
According to the court, the illegal activities took place from 2007 to 2011. Presiding judge Sebastian Hausen stated, "The defendant caused a loss of nearly €500 million through his actions." Regarding the colossal tax scandal in the Federal Republic, the judge added, "He was the main man." The prosecution had advocated for a three-and-a-half-year prison sentence, while the defense pushed for a dismissal of charges.
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Steck was once a partner at the law firm of Cum-Ex mastermind Hanno Berger. While Berger remained ardently convinced of the legality of his actions, Steck expressed remorse, assisted the public prosecutor's office, and served as a whistleblower. His cooperation played a part in lessening the sentence, as the judge's remarks indicated. In 2022, Berger received an eight-year prison term from the Bonn Regional Court.
In the Cum-Ex transactions, financial sleuths exploited loopholes in dividend tax regulation, shifting stocks with and without dividend claims back and forth to secure multiple refunds for taxes that were never paid. The scam reached its zenith between 2006 and 2011. Estimates suggest that the treasury was defrauded of a double-digit billion amount.
[1] ntv.de[2] lar/dpa[3] The Guardian[4] Reuters
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- "In light of the Cum-Ex tax scandal unfolding in the Federal Republic, the question arises: Does the community policy need a review to prevent such massive financial crimes in the future?"
- "As the business world continues to grapple with the Cum-Ex saga, general-news platforms such as finance, Facebook, Twitter, WhatsApp, Email, Print, and Copy Link are abuzz with updates on the ongoing investigations and court proceedings, including crime-and-justice details."
