Financial criminality - Former Cum-Ex investigator: Billions need to be repaid
Former Cum-Ex investigator Anne Brorhilker financial criminality once again declares war, now as a business manager at Finanzwende. Her new role at the non-governmental organization means a changed strategy, she explained in a press conference. "I know the perpetrators and I know how they operate. I now want to use this knowledge to prevent criminal activities before they even happen."
Brorhilker will fight publicly for the return of stolen tax money with Finanzwende. She is no longer bound by political restraint, she said. Financial criminality is too often seen as a cavalier offense in Germany. "It's about billions that we all lack and that we need to recover."
A laborious fight against tax crime
The former Cologne public prosecutor was considered the most important investigator in the Cum-Ex tax scandal, in which banks defrauded the German state for at least ten billion euros through illegal share deals. In around 120 Cum-Ex proceedings, under Brorhilker's leadership, over 1700 suspects were investigated in Cologne. In April, Brorhilker surprisingly asked for dismissal from public service - accompanied by sharp criticism of the inadequate handling of the tax scandal.
In Cum-Ex deals, shares with and without dividend claims were passed back and forth between parties around the dividend payment date. In the end, unpaid capital gains taxes were not paid. The legislative gap was not closed until 2012. In 2021, the Federal Court of Justice ruled that Cum-Ex transactions should be considered tax evasion. Meanwhile, some perpetrators have been sentenced, including Cum-Ex architect Hanno Berger.
Serious allegations against financial authorities and bank lobby
At Finanzwende, Brorhilker is advocating for the prosecution 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 ruling by the Federal Finance Court in 2015, it has been "undoubtedly clear that the transactions are not in order according to tax law," Brorhilker said. Almost ten years later, little has changed.
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 the banks from a repayment of profits from the illegal transactions. Only in 2021 was the document corrected. Finanzwende wants to know how that was possible. So far, inquiries to financial authorities have not yielded a satisfactory answer. Therefore, the association has filed a lawsuit for the release of documents.
The financial industry sees Brorhilker as a powerful adversary. She described it as a "large, very well-connected industry" that has a great interest in preventing effective controls and prosecution of Cum transactions. Apparently, it is succeeding. Significantly contributing to this, in Brorhilker's view, is the "obstructionist attitude" of the affected authorities. One gets the impression that "the finance ministries are closer to the financial lobby than to the citizen."
- Anne Brorhilker, now a business manager at Finanzwende in Berlin, Germany, aims to combat financial criminality, particularly in relation to the Cum-Ex scandal and potential Cum-Cum transactions.
- Brorhilker's new strategy involves using her past experience with the Cum-Ex scandal to prevent future financial crimes, as she believes in prosecuting those responsible for tax evasion and illegal share deals.
- In Cologne, Brorhilker led investigations into over 1700 suspects in around 120 Cum-Ex proceedings, but she criticized the inadequate handling of the scandal and requested dismissal from public service in April.
- The Citizen's Movement, Finanzwende, is currently pursuing a lawsuit against financial authorities in Germany for the release of documents related to the Cum-Ex scandal, as they seek answers to serious allegations of protecting banks from repayment of profits from illegal transactions.
