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German Tax Evasion Scandal Heats Up

With one bigwig already toppled for tax misdeeds, and hundreds more likely waiting their turn, all roads lead to the principality of Liechtenstein

It is rapidly becoming one of the largest economic scandals ever in Germany's post-World War II history. As many as 900 wealthy Germans -- many of them well-known -- might be involved. Berlin may have been shorted up to 4 billion euros in taxes. And the accusatory finger is pointing increasingly at what many feel is rampant greed among of many of Germany's top earners -- and at a handful of banks and foundations in the tiny principality of Liechtenstein that help the affluent hide their assets.

The first to fall was Deutsche Post CEO Klaus Zumwinkel. He resigned on Friday after raids on his home and office by officials looking for evidence of massive tax invasion. But with officials planning to launch up to 125 additional tax evasion investigations next week, it is likely that Zumwinkel will soon have to share headline space.