Financial criminality - Former Cum-Ex investigator: Billions need to be repaid
Brorhilker, the former Cologne Chief Public Prosecutor, who was instrumental in investigating the Cum-Ex tax scandal that cost the German state at least 10 billion Euros, has declared war on financial criminality once again. In her new role as Business Manager at Finanzwende, she intends to use her knowledge to prevent criminal activities before they even occur.
Brorhilker will fight for the return of stolen tax money in the public sphere with Finanzwende. She is no longer bound by political restraint, she stated in a press conference. Financial criminality is too often seen as a trivial matter in Germany. "It's about billions that we all lack and need to recover."
A Painstaking Battle Against Tax Crime
Brorhilker was a key investigator in the Cum-Ex tax scandal, where banks defrauded the German state using illegal share deals. In approximately 120 Cum-Ex cases, over 1700 suspects were investigated under Brorhilker's leadership in Cologne. In April 2015, Brorhilker unexpectedly resigned from her position in the civil service, accompanied by sharp criticism of the insufficient handling of the tax scandal.
Cum-Ex deals involved the transfer of shares with and without dividend claims between parties around the dividend payment date. Ultimately, unpaid capital gains taxes were not reported. The legislative loophole was closed only in 2012. In 2021, the Federal Court of Justice ruled that Cum-Ex transactions should be considered tax evasion. Several perpetrators have since been sentenced, including Cum-Ex architect Hanno Berger.
Severe Accusations Against Financial Authorities and Banking Lobby
At Finanzwende, Brorhilker is advocating for the pursuit of Cum-Cum transactions, which are similar to Cum-Ex deals. Although the tax damage from Cum-Cum is estimated to be around 28.5 billion Euros, the financial authorities have only recovered a fraction so far. Since a judgment of the Federal Finance Court in 2015, it has been "undoubtedly clear that these transactions are not in order according to tax law," Brorhilker said. Nearly ten years later, little progress has been made.
A Problem from Brorhilker's Perspective: A letter from the Federal Ministry of Finance in 2016 complicated the clear factual situation so much that it protected banks from repayment of their profits from the illegal transactions. This was only corrected in 2021. Finanzwende wants to know how this was possible. So far, inquiries to financial authorities have not yielded a satisfactory answer. Therefore, the association has filed a lawsuit for the disclosure of documents.
The financial industry sees Brorhilker as a powerful adversary. She described it as a "large, very well-connected industry" that has a significant interest in preventing effective controls and prosecution of Cum-Transactions. Apparently, it is succeeding. The obstructive attitude of the affected authorities is a major concern for Brorhilker. One gets the impression that "the finance ministries are closer to the banking lobby than to the citizen."
- Anne Brorhilke, now based in Berlin, Germany, is leading a Citizens' Movement called Finanzwende, focusing on combating financial criminality in her new role as Business Manager.
- In her recent press conference, Brorhilke expressed concern over how financial criminality is sometimes perceived as trivial in Germany, emphasizing its impact on substantial financial losses for citizens.
- Aware of Cologne's significant past involvement in the Cum-Ex tax scandal, Brorhilke, as the former Chief Public Prosecutor, previously led investigations on over 1700 suspects associated with this financial crime.
- Criticizing the delayed response from German financial authorities and banks in dealing with financial crimes, Brorhilke, now in Berlin, has taken legal action against these institutions to uncover their role in the Cum-Ex scandal and advocate for the return of stolen tax funds.
