German Court Considers Termination of Trial for Prominent Banker in €10 Billion Tax Fraud Case

A German regional court announced on Friday that both prosecutors and defense lawyers have requested the termination of the criminal trial of Christian Olearius, a prominent banker accused of involvement in an alleged €10 billion ($10.7 billion) tax fraud scheme.

Christian Olearius, who has consistently asserted his innocence, went on trial last year at the age of 81. Prosecutors have now determined that the former CEO and chair of Hamburg-based bank M.M. Warburg is no longer fit to stand trial.

The scheme, known as "cum-ex" or dividend stripping, involved banks and investors rapidly trading shares of companies around their dividend payout day, creating confusion about stock ownership and enabling multiple parties to falsely reclaim tax rebates.

Prosecutors, who initially identified damages amounting to nearly €280 million, are now seeking the confiscation of approximately €43 million in proceeds from the transactions. Meanwhile, the defense is pushing for a full acquittal, according to the court.

Hearings have been scheduled to determine the next steps in the case.

Although the loophole that facilitated these trades from 2005 to 2012 has been closed, an extensive and ongoing investigation aims to hold those responsible accountable and recover the estimated €10 billion lost from government coffers.

M.M. Warburg has not provided any immediate comment on the matter.

By fLEXI tEAM