German police arrest two bankers over phantom tax trades

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German police arrest two bankers over phantom tax trades
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German federal police have arrested two bankers in a widening investigation into...

FRANKFURT - German federal police have arrested two bankers in a widening investigation into the multi-million-euro “cum-ex” trading scheme, Frankfurt state prosecutors said on Friday.

Federal police had made the arrests to prevent the men from leaving Germany, the prosecutors added in a statement, which did not name the two individuals. The Frankfurt investigation is one in a series of probes across Germany of a scheme that saw investors from around the world target chiefly German companies to generate multiple tax reclaims from phantom dividends, known as cum-ex.

These trades attracted the attention of German tax authorities after around a decade, who slowly stamped them out.

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