On Wednesday, German authorities sentenced a former MM Warburg bank employee to three and a half years in prison for his role in Germany's largest postwar tax fraud scheme, which involved banks and investors making false tax claims.
The money, according to experts, will never be recovered.
The bank employee is the second person to be sentenced for trading activities that flourished following the financial crisis and cost Germany over €5 billion.
According to Reuters, Judge Roland Zickler ruled that tax evasion was the primary crime committed.
According to the judge, between 2009 and 2019, the managing director of a Warburg investment firm set up two funds to profit from transactions that harmed the public coffers.
It was the "biggest mistake of my professional life," according to Detlef M.
The ruling had "no immediate impact" on Warburg Bank and the subsidiary at which Detlef M. worked, according to a spokesperson for M.M. Warburg.
The cases were closely followed in London and Frankfurt, where most of the trading occurred, according to bankers and court documents.
By fLEXI tEAM