Prosecutors suspect 70 Deutsche Bank managers in dividend tax probe: paper
07 Jun 2019

German prosecutors have extended an investigation into a tax-stripping scheme, with around 70 current and former executives of Deutsche Bank now being treated as suspects, the Sueddeutsche Zeitung reported on Thursday.

Among those suspected by the Cologne prosecutor’s office is Garth Ritchie, the head of Deutsche’s investment banking arm, the newspaper wrote in a report that cited unnamed sources. Ritchie, through a Deutsche Bank spokesman, declined comment.

No comment was immediately available outside office hours from the Cologne prosecutor.

In a statement, Deutsche Bank confirmed that further current and former managers were under investigation, but did not say who they were. It also said they were not involved in the tax scheme.

Investigators suspect managers at Deutsche and other banks of exploiting a loophole to allow two parties to claim ownership of the same shares, making it possible to claim fraudulent dividend tax rebates running to billions of euros.

This scam, known as ‘cum-ex’, is being investigated by several prosecutors’ offices, casting one of many shadows over Deutsche Bank as CEO Christian Sewing strives to map a path to sustainable profitability after years of losses at Deutsche.

By Douglas Busvine and Hans Seidenstuecker, Reuters, 6 June 2019

Read more at Reuters

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