7/25/15, "German prosecutor to charge eight Deutsche Bank staff in carbon tax case -Spiegel," Reuters, Frankfurt
"A German prosecutor is set to
charge eight Deutsche Bank employees following an
investigation into tax fraud linked to trading of carbon
certificates, Der Spiegel magazine reported on Saturday, without
disclosing any sources.
Frankfurt's chief prosecutor will accuse them of securing
fees and bonuses from participating in a carbon emission
certificate scam that resulted in tax evasion worth 136 million
euros ($149 million), the magazine reported.
At least 14 people have been jailed in three countries so
far for their involvement in carbon trading VAT fraud. European
police agency Europol has estimated such crime has cost
taxpayers more than 5 billion euros in lost revenue since 2008.
The Frankfurt prosecutor said in May that they were
investigating 26 current or former employees at Deutsche, 17 on
suspicion of tax evasion, five for money laundering and four for
obstruction of justice.
Der Spiegel referred to around 21 staff in its report,
including the eight to be charged. It said the Frankfurt
prosecutor had decided not to charge three people following the
investigation and was continuing to investigate a dozen or so
other employees at the bank. It did not say whether they were
current or former employees.
The Frankfurt chief prosecutor declined to comment when
contacted by Reuters.
A spokesperson for Deutsche Bank, contacted by Reuters, said
that the bank's investigation into CO2-related matters was
continuing. "We are cooperating with the relevant authorities."
The carbon trading scandal emerged in 2009 when British
authorities notified Deutsche Bank about suspicious deals, known
as "carousel fraud", designed to generate tax refunds when no
tax had been paid.
The cases involved buyers importing contracts for CO2
emissions rights into one EU member state from another, free of
VAT. The buyers then did not sell them for use in that market
but sold them on to an untraceable series of companies in an
agreed chain, which ultimately re-exported them, pocketing a
rebate from tax authorities, sources familiar with the matter
The carbon tax fraud was one of a long list of scandals and
other issues that eventually led to a purge of Deutsche Bank's
leadership in June, including the resignation of co-Chief
Executive Anshu Jain.
The bank's largest shareholder, Blackrock, denied
that it had pushed for Jain to step down, German daily
Tagesspiegel said on Saturday, quoting the head of Blackrock's
German operations, Christian Staub.
"Members of our global board have made it clear that we did
not exercise influence in this case," Staub was quoted as
saying, adding that Blackrock would, in general, make itself
heard when things get out of hand. "We do exercise influence,
but we work behind the scenes.""
A Deutsche Bank spokesperson declined to comment on the
($1 = 0.9101 euros)."
"(Reporting by Arno Schuetze and Alexander Hübner; Editing by