High-profile German Banker on trial for fraud

In a headline-grabbing trial taking place this week in Bonn, a top German banker, Christian Olearius, is facing accusations of involvement in a vast multibillion-euro tax fraud scheme known as “cum-ex” or dividend stripping. 

The complex scheme entailed rapid trading of shares around dividend payout dates, creating confusion over stock ownership and enabling multiple parties to fraudulently claim tax rebates on dividends. 

The dividend stripping loophole, which enabled these activities between 2005 and 2012, has since been shut down. However, a comprehensive search is now underway to hold those responsible to account and recover an estimated 10 billion euros lost from government funds.

Christian Olearius, the 81-year-old former CEO and chair of Hamburg-based M.M. Warburg bank, is the highest-ranking banker to face trial in this case. While he denies any wrongdoing, he did not make a statement in court this week. Prosecutors allege that Olearius conspired with individuals both inside and outside Warburg to engage in the duplicitous transactions, claiming damages of around €280 million. 

This trial follows earlier convictions, including a tax lawyer thought to be the ringleader of the fraud, who received an eight-year jail sentence. Several others, including a former Warburg group worker and two UK bankers have also been prosecuted and hit with fines.

The case has taken on political dimensions, with questions raised about whether German Chancellor Olaf Scholz, formerly the mayor of Hamburg, stepped in on Warburg’s behalf. Scholz has denied these allegations. 

Know the risks

The unfolding trial represents a huge effort to address one of Germany’s most extensive tax fraud scandals, but it also points to the risks that can arise when transparency and accountability are not prioritised at every juncture.

The issues take centre stage at #RISK Amsterdam on September 27 and 28, where experts will discuss the key challenges, opportunities and threats governing today’s global financial landscape.

Click here for the full #RISK Amsterdam agenda

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Key sessions taking place at #RISK Amsterdam:

Where are we in the global fight against financial crime?

• Date: Wednesday 27 September, 2023
• Location: GRC & Financial Risk Theatre
• Time: 13:00pm – 14:00pm (CET)

As the threat and sophistication of financial crime continues to increase, financial institutions are challenged to stay one step ahead to ensure the highest level of protection for their organisations and customers. But what is the current state of things around the world?

In this session, we’ll take a look at some of the current challenges in fighting financial crime, the factors driving the complexity and the cost of the fight.

Also not to be missed:

How to prepare for the Digital Operational Resilience Act (DORA)?

• Date: Thursday 28 September, 2023
• Location: GRC & Financial Risk Theatre
• Time: 13:00pm – 14:00pm (CET)

The Digital Operational Resilience Act (DORA) is a new European framework for effective and all-inclusive management of digital risks in Financial Markets.

With an implementation period of two years, financial entities will be expected to be compliant with the regulation by 17th January 2025.

How exactly will DORA affect the financial sector and its professionals? How will it shape the market and impact its actors? And more importantly, what can you do to prepare for such a demanding change? Find out at #RISK Amsterdam.

Discover more at #RISK Amsterdam

With over 50 exhibitors, keynote presentations from over 100 experts and thought leaders, panel discussions, and breakout sessions, #Risk Amsterdam 2023 is the perfect place to learn about the present and future risk landscape.

Going live September 27 and 28, 2023 at RAI Amsterdam.

Click here to register for #RISK Amsterdam