Cum-Ex Whistleblower Kai-Uwe Steck Faces Trial for Tax Fraud

The former attorney, instrumental in exposing Germany's largest tax scandal, is accused of causing €428 million in losses through illegal stock deals.

• The trial of Kai-Uwe Steck, a key figure in the Cum-Ex tax fraud scandal, began at the Bonn Regional Court, with charges of eight counts of severe tax evasion from 2007 to 2015.
• Steck's cooperation with authorities as a whistleblower led to the recovery of €853 million for the German treasury and contributed to numerous convictions in related cases.
• The defense criticized the handling of the case by Cologne prosecutors, alleging procedural flaws, delays, and mishandling of evidence, including improperly documented agreements and interrogation records.
• Steck, a former partner of convicted tax lawyer Hanno Berger, admitted to profiting €14 million from the scheme, of which €11 million has been repaid to tax authorities.
• Cum-Ex schemes exploited a loophole allowing investors to claim refunds on taxes they never paid, costing Germany an estimated €10 billion before the practice was outlawed in 2012.

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