Carbon Trading: An Institutionalized Racket Rife With Abuse And Fraud

Deutsche Bank Employees Charged in Emissions Trading Case

By THE ASSOCIATED PRESS

BERLIN — German prosecutors have filed tax evasion charges against eight current and former Deutsche Bank employees over their alleged participation in a value-added tax fraud scheme involving carbon dioxide emissions certificates.

Frankfurt prosecutors said Thursday that the eight — seven of whom are still employed by the bank — are accused of being involved in the scheme between September 2009 and February 2010.

In four to six cases, they allegedly caused employees at the bank’s tax department to file incorrect VAT notifications and as a result evaded tax totaling 220 million euros ($245 million), prosecutors said.

Prosecutors did not identify the suspects, but said they are aged between 33 and 64. They include two account managers, a commodities trader, a tax department employee and a former manager in whose department the emissions certificate trading took place.

Deutsche Bank said that its own investigation of the matter is continuing and “covers all relevant facts.” It added that it is cooperating with authorities.

Prosecutors have been investigating the scheme since 2010. Several other suspects, none of them Deutsche Bank employees, have already been convicted over their part in it.

A British man who is suspected of being a major figure in the scheme and is accused of evading over 125 million euros in taxes was arrested in Las Vegas in May 2014 and is awaiting extradition to Germany, Frankfurt prosecutors said.