The Olearius case verdict brings disappointment.
Final chapter in the Cum-Ex case against ex-Hamburg bank honcho Christian Olearius is bittersweet. However, during the tax scandal investigation, he was merely a stand-in – for a far greater player.
The final court day concluded swiftly, much like the court had scheduled a few days prior, keeping in mind the defendant's health issues. By around 3 PM, it was all over – the most significant economic criminal trial of the year – dismissed due to permanent unavailability for trial: Christian Olearius, former CEO and personally accountable partner of the esteemed private bank M.M. Warburg, can now return to his normal life.
There won't be any more court trips to Bonn Regional Court, no more humiliating interrogations, no witness testimonies, and no verdict. Prosecutors accused Olearius of swindling the state out of nearly 280 million euros through intricate securities transactions known as "Cum-ex," with the assistance of some bank colleagues and clever lawyers. Yet, the proceedings against him, the ex-CEO, have concluded.
However, substantial parts of the damage – approximately 230 million euros – Olearius had already repaid in 2020. The judge also emphasized that the dismissal of the proceedings was not an exoneration but a recognition of the defendant's poor health.
Despite the heavy accusations, the conclusion is still harsh. A state under the law can be rather demanding. The total damage to the state from the securities transactions, which nearly every bank and cunning big investors engaged in during the 2000s, runs into the billions. Yet, the dismissal is not a scandal within a scandal, nor a surrender before the big shots, after the small fry have been quickly sentenced.
What did Scholz know?
Doctors at the University of Cologne confirmed Olearius' health issues in a separate report. Acceptable trial lengths of 45 minutes per day meant the trial could've extended over a hundred days, lasting years. The still outstanding amount of over 40 million euros can be reclaimed by the prosecution in a separate proceedings in the coming months, and this money should not be squandered.
People might lament that the proceedings against Olearius could have prolonged if the rules had relaxed a little, if, for instance, the sick defendant had been excused from court attendance.
Yet, in reality, Olearius was merely a representative in a much larger investigation that is yet to commence: What exactly did Olaf Scholz, during Olearius' tenure at Warburg, know about the tax scandal – as Hamburg's Mayor at the time, later Federal Finance Minister, and now Federal Chancellor? It is now known that Olearius met with Scholz during his mayoral term to seek leniency in disputes with Hamburg's financial authorities.
Scholz himself claims he can no longer recall the details of his conversations with Olearius. However, knowing Scholz's attention to detail and confidence, even the most complex matters are said to have been thoroughly comprehended by him, and sudden memory loss finds it hard to believe.
The prosecutor accuses
An investigation committee is scrutinizing Scholz's role in Hamburg, and the Union also plans to instate one on a federal level. The traffic light coalition has, so far, managed to block this in unusual unity.
The work of the Cologne prosecutors is crucial: Their head, Anne Brorhilker, had previously accused Scholz of succumbing to political resistance and continuous disputes. The bigger question now is: Will Brorhilker's colleagues carry on their work fearlessly or succumb to opposition manipulation and party maneuvers?
The ongoing case against the Hamburg finance official, who once arranged a temporary tax exemption for Warburg Bank following a meeting between Scholz and Olearius, is still underway. She currently faces indictment for aiding and abetting tax evasion and fraud, among other charges, and faces up to ten years in prison. She remains silent – but whether this will continue if she stands trial is yet to be determined.
The ongoing proceedings against Olearius may be hard to swallow. But the far larger and more crucial question – whether the rule of law can still expose a scandal like Cum-Ex – is to be decided elsewhere.
This text first appeared on capitial.de
Read also:
Despite the dismissal of the proceedings against Christian Olearius, the prosecution may seek to recover the remaining 40 million euros in separate proceedings. Meanwhile, the investigation into Olaf Scholz's knowledge of the Cum-Ex tax scandal during his tenure as Hamburg's Mayor and later as Federal Finance Minister continues, with allegations of political resistance and disputes affecting the investigation.
The Cum-Ex case also involves other high-profile individuals, such as Anne Brorhilker, a Hamburg finance official currently facing indictment for aiding and abetting tax evasion and fraud in relation to a temporary tax exemption she arranged for Warburg Bank following a meeting between Scholz and Olearius.
