Deutsche Bank is involved in an ongoing investigation of a decade-old tax fraud case, the bank said on Tuesday. Germany’s largest lender is one of many involved with the multibillion-euro “cum-ex” scandal.
Though Deutsche wasn’t officially named, the public prosecutor’s office in Cologne confirmed that a raid was conducted on a bank and auditing company. The raid occurred in Frankfurt and included over 100 investigators, and 10 employees had their private residences searched.
Deutsche Bank Shrouded in Controversy
Christian Sewing, Chief Executive Officer, has been trying to clear the reputation of the company since he took charge in 2018. But this is not the first time Deutsche has been investigated by German prosecutors.
Another raid was conducted earlier this year with respect to the bank giving misleading information about “green” investments to lenders. The bank claimed that certain companies were more sustainable than they actually were, a practice called “greenwashing.”
In today’s investigation, Deutsche has been accused of dividend stripping. This involves investors and banks quickly trading shares of companies around dividend payout days, which muddies the line of stock ownership. It also allows several parties to falsely claim tax rebates on said dividends.
Deutsche isn’t the only organization in trouble, however. Prosecutors say that upwards of 100 banks and at least 1,000 suspects are involved in the case that spans four continents.
Officials from Deutsche stated that they have been cooperating with investigators since 2017. They will continue to do so until the case is closed.