Tax fraud scandal: Ex-lawyer Steck punished with probation penalty!

Tax fraud scandal: Ex-lawyer Steck punished with probation penalty!

Bonn, Deutschland - The Bonn district court has now condemned lawyer Kai-Uwe Steck for particularly severe tax fraud in five cases. He received a prison sentence of one year and ten months, which was suspended for probation. The court also decided that Steck had to repay around 24 million euros that he had achieved through his actions. The tax damage he has caused is almost half a billion euros. The presiding judge Sebastian Hausen described Steck as a central figure in the Cum-Exskandal, which caused considerable financial losses in Germany.

The deeds of Steck took place from 2007 to 2011. Even if the public prosecutor's office demanded a prison sentence of three years and eight months, Steck’s cooperation with the investigative authorities had a mitigating mitigate. This is remarkable because he used to be a law firm of Hanno Berger, who is considered the architect of the Cum-Ex scandal and was sentenced to an eight years in 2022.

background of the Cum-Ex scandal

The CUM-EX fraud essentially ran out that financial actors postponed stocks with and without dividend entitlement in order to have unpaid taxes reimbursed. Insiders estimate that the high phase of this fraud made the state treasury in Germany made over 31.8 billion euros made easier from 2006 to 2011. In total, the five most affected European countries lost over $ 62.9 billion through similar machinations that extended through a network of stock dealers, tax consultants, bankers and lawyers.

The serious dimensions of this tax fraud were obvious on October 18, 2018 by publishing the Cumex Files, which were published by CORRECTIV in cooperation with media from twelve countries. These reveals led to an intensive legal and political aftermath, which continues to this day.

Current developments

Steck's judgment has not yet been legally binding, but part of the punishment is already deemed to have been enforced due to the long period of proceedings. Despite the suspension of suspension, including the public prosecutor's office, the view is taken into account that the repayment of around 26 million euros and a four -year professional ban should be part of the fair consequences for his deeds.

The Cum-Ex scandal remains a topic of considerable social interest. Documentary films such as "On the trail of money" and "system error: the Cum-Ex Skandal" and the fictional series "The Cum-Ex" affair have prepared the events and address the mechanisms and consequences of this fraud. These productions illustrate the serious effects on the financial world and public trust in tax processes.

Overall, the case of Kai-Uwe Steck shows how deeply rooted and complex the topic of tax fraud is and what far-reaching consequences it has for society.

Further information is in the reports of Dewezet.de , Zeit.de and wikipedia