Norton Rose Fulbright’s Frankfurt offices were raided by Cologne prosecutors as part of their vast investigation into the controversial Cum-Ex scandal that has swept up Wall Street’s biggest banks.
(Bloomberg) — Norton Rose Fulbright’s Frankfurt offices were raided by Cologne prosecutors as part of their vast investigation into the controversial Cum-Ex scandal that has swept up Wall Street’s biggest banks.
A spokesman for the law firm confirmed the search which was part of a probe by Cologne prosecutors. Norton Rose is cooperating with the authorities, he said. The law firm or any of its current employees are being investigated.
A Cologne prosecutors’ spokesman said the agency was raiding a law firm in Frankfurt without disclosing its name. Investigators also searched the home as well as the new workplace of a former law firm staff member who is a suspect in the case. More than 45 officers were involved who were also looking for evidence of deals similar to Cum-Ex, the spokesman said.
Cum-Ex was a trading strategy across Europe that siphoned off at least €10 billion ($11 billion) in government revenue in Germany alone. The deals took advantage of tax laws that seemed to allow multiple investors to claim refunds of a tax on dividends that was paid only once. Germany moved to abolish the practice in 2012.
While dating back more than a decade, the Cum-Ex scandal continues to roil the financial industry. Prosecutors in Cologne are investigating more than 1,500 people and are ramping up the pressure on international banks.
Bank of America Corp.’s Merrill Lynch premises have been targeted in recent months along with Morgan Stanley and JPMorgan Chase & Co. Barclays Plc’s Frankfurt office was also hit by prosecutors. Bank of New York Mellon’s Frankfurt offices were raided in November.
(Updates with Norton Rose statement in second paragraph.)
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