A group of former Deutsche Bank AG employees are being investigated as part of Frankfurt prosecutors’ probe into trades that gave investors controversial tax benefits on dividends.
Prosecutors expanded their three-year old investigation to include former bank employees who opened their own company to process so-called cum-ex trades, said Norbert Gatzweiler, an attorney for another man caught up in the case. His client, a tax lawyer named Hanno Berger, has been under investigation since 2012 over advice he provided on the transactions.
Prosecutors raided Deutsche Bank’s headquarters in Frankfurt Tuesday as part of the probe only two days after co-Chief Executive Officers Anshu Jain and Juergen Fitschen said on Sunday they would step down early from their posts. The management shake-up put a spotlight on the bank’s mounting legal woes, which have already eroded earnings and distracted senior executives amid investor demands to overhaul the firm to improve profitability.