Two Found Guilty in Munich's First Cum-Ex Tax Fraud Trial

Defendants sentenced to over five years for orchestrating a €343 million tax evasion scheme using the controversial Cum-Ex method.

The Munich court sentenced two former financiers, aged 71 and 63, to five years and three months in prison for their roles in a €343 million tax fraud scheme.
The defendants admitted to using the Cum-Ex trading method from 2009 to 2010, which exploited dividend tax loopholes to claim refunds on taxes never paid.
Both men expressed remorse during the trial, with their early confessions and cooperation influencing the court's decision to impose lighter sentences than requested by prosecutors.
The Cum-Ex scheme is estimated to have cost the German government billions, with numerous ongoing investigations and trials across the country.
The 2021 ruling by Germany's Federal Court of Justice established that Cum-Ex transactions constitute tax evasion, setting a precedent for future cases.