A Banker’s Long Prison Sentence Puts Industry on Alert
- Former Warburg manager convicted of aggravated tax evasion
- German banker could be first to serve time over dividend trade
Photographer: Morris MacMatzen/Getty Images
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The sentencing of a former banker at M.M. Warburg & Co. to 5 1/2 years in German prison for his role in the controversial Cum-Ex trading scheme is set to send shock waves through the financial industry, where about 1,000 other suspects in the wide-ranging probe await their fate.
Late on Tuesday, judges in Bonn convicted the man who can only be identified as Christian S. of aggravated tax evasion. They also ordered 100,000 euros ($121,810) of his own money be seized to undo part of the tax loss. While his defense team sought an acquittal, prosecutors pushed for an even harsher penalty, asking the judges to sentence Christian S. to 10 years.