Frankfurt public prosecutors said in a statement that the accused were seven current employees and one former employee of a “major bank”, but did not identify the company involved. The bank’s Frankfurt headquarters were raided by around 500 police and tax inspectors in late 2012, related to investigations into the carbon trading market. The matter stated that the European Union’s spot carbon market smacked by carousel trade in the year 2009 and 2010, in which buyers have imported emission plants in one European nation without paying Value-added tax, and then, they had started selling to each other, affixing tax to the price, along with the net difference.
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Fourteen people have been jailed in three countries so far for their involvement.
The Frankfurt prosecutors have investigated 25 Deutsche Bank employees, including co-Chief Executive Jürgen Fitschen and executive board member Stefan Krause.
The Frankfurt prosecutors explained those charged with fraud had used the mechanism to file incorrect VAT notifications at Deutsche’s tax department in cooperation with companies unwilling to pay for their emissions, resulting in losses totaling 220 million euros ($245 million).
Although German prosecutors did not name the financial institution in question, it was soon confirmed to be Deutsche Bank. “We’re fully cooperating with the authorities involved”.
Their ages range from 33 to a 64-year-old who has already retired. All have been suspended from their jobs.
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None of the accused were named.
