Judgment in the tax scandal: more than eight years in prison for Cum-Ex key figure Hanno Berger

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In addition, proceeds of almost 1.1 million euros from Berger’s assets are confiscated. The Frankfurt prosecutor’s office had accused Berger of being involved in complex “cum-ex” stock transactions between 2006 and 2008, which led to unauthorized tax refunds of 113 million euros.

In the transactions brokered by Berger, Dax shares worth 15.8 billion euros were traded through former employees of the Hypovereinsbank. The beneficiary was a real estate investor who has since passed away. The profit was divided.

The possible maximum for Berger was 15 years. The prosecution had demanded a prison sentence of ten years and six months, the defense had argued for Berger’s acquittal.

Berger is the best-known figure in the business model, which was declared a criminal offense by the Federal Court of Justice in 2021. He advised banks, funds and investors in setting up cum-ex deals and recruited high net worth clients through his network. He made millions for it.

He used to be an official at the Hessian tax office, later he switched sides and became self-employed as a tax lawyer. Berger had repeatedly dismissed the allegations and saw himself as the victim of a court scandal.

Berger did not devise the business model in which shares with (cum) and without (ex) dividend rights were deferred around the dividend record date and unpaid taxes were refunded. However, he is considered a pioneer in exploiting Cum-Ex on a large scale in Germany.

The deals, which peaked between 2006 and 2011 and were widespread among banks, caused the German state to lose an estimated 10 billion euros. In 2012, the tax loophole was closed.

At the end of 2012, tax expert Berger fled to Switzerland, where he managed to evade German justice for years. He was only extradited to Germany in February 2022 and sentenced to eight years in prison by the Bonn Regional Court last December.

With the verdict in Wiesbaden, a total sentence of up to 15 years can be formed in a follow-up decision. However, the Bonn judgment is not yet final. Berger, on the other hand, appealed to the Federal Court of Justice.

(SDA)

Source: Blick