Cum-ex affair: court sentenced German bankers to prison for the first time

In another proceeding on the controversial »Cum-Ex«-Deals is in Bonn a former employee of Warburg Bank sentenced to five and a half years imprisonment. The district court found the Germans guilty of tax evasion in five cases on Tuesday, a court spokeswoman said. According to the information, two months of the sentence are already enforced because the proceedings had dragged on over a long period of time. The verdict is not yet final, said the spokeswoman.

The Cologne public prosecutor's office brought charges against the man at the end of May. According to the Bonn Regional Court, she accuses him of involvement in particularly serious tax evasion in 13 cases between the end of 2006 and the end of 2013.

Cum-ex transactions refer to the postponement of shares around a dividend cut-off date in order to have a capital gains tax paid once by the tax authorities multiple times. As a result, the public sector has lost billions of dollars in tax money in the past. The federal government officially put a stop to the practice in 2012.

In the nationwide first Cum-Ex criminal case, the Bonn district court imposed suspended sentences on two defendants in March - and at the same time determined for the first time that the controversial practice was to be regarded as criminal.