A German regional court said on Friday that prosecutors and defence lawyers have requested the termination of the criminal trial of a prominent banker who is accused of playing a role in an alleged 10 billion euro ($10.7 billion) tax fraud scheme.
Christian Olearius, who has maintained that he did nothing wrong, went on trial at the age of 81 last year. Prosecutors now say the former CEO and chair of Hamburg-based bank M.M. Warburg is no longer fit to stand trial.
In the scheme, known as “cum-ex” or dividend stripping, banks and investors would swiftly trade shares of companies around their dividend payout day, blurring stock ownership and allowing multiple parties to falsely reclaim tax rebates.
Prosecutors, who had originally identified damages of nearly 280 million euros, are now seeking the confiscation of around 43 million euros in proceeds from the transactions, while the defence wants a full acquittal, said the court.
It has scheduled hearings on how to proceed.
The loophole that allowed the trades from 2005 to 2012 has closed, but a long and wide-ranging investigation has courts and officials trying to hold wrongdoers to account and claw back the estimated 10 billion euros lost from government coffers.
M.M. Warburg had no immediate comment.
($1 = 0.9348 euros)
