Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Deutsche Bank to pay $550 million in tax fraud probe

By Blake Ellis, staff reporter


NEW YORK (CNNMoney.com) -- Deutsche Bank AG agreed Tuesday to pay more than $550 million for taking part in fraudulent federal tax shelters, according to U.S. regulators.

The German bank admitted wrongdoing "in connection with its participation in financial transactions which furthered fraudulent tax shelters that generated billions of dollars in U.S. tax losses," the United States Attorney of the southern district of New York said in a statement Tuesday.

The $553.6 million fine represents the money Deutsche (DB) collected through its participation in the tax shelters, the taxes the IRS was unable to collect from taxpayers involved in the scheme, as well as a civil penalty of more than $149 million.

Under a non-prosecution agreement with federal authorities, Deutsche agreed to the appointment of an independent expert who will review the bank's compliance.

The agreement marked the end to an ongoing probe into the pre-packaged tax products the bank offered, which the government suspected were tax shelters aimed at illegally evading taxes.

"Deutsche Bank is pleased that this investigation, which concerned transactions that ceased more than eight years ago, has come to a resolution," the bank said in a statement. "Since 2002, the Bank has significantly strengthened its policies and procedures as part of an ongoing effort to ensure strict adherence to the law and the highest standards of ethical conduct." To top of page

Index Last Change % Change
Dow 15,660.18 -254.56 -1.60%
Nasdaq 4,266.84 -16.75 -0.39%
S&P 500 1,829.08 -22.78 -1.23%
Treasuries 1.64 -0.06 -3.58%
Data as of 8:07am ET
Company Price Change % Change
Bank of America Corp... 11.16 -0.82 -6.84%
Cisco Systems Inc 24.68 2.17 9.64%
General Electric Co 27.45 -0.85 -3.00%
Chesapeake Energy Co... 1.78 0.08 4.71%
Apple Inc 93.70 -0.57 -0.60%
Data as of Feb 11
Sponsors

Sections

Boeing's stock fell by as much as 12% after Bloomberg reported the SEC is investigating the company's accounting practices. More

Hedge fund billionaire John Paulson has been making a big personal investment in Puerto Rican properties because he believes it's like Miami in the 1980s. More

Just three days after Zenefits CEO Parker Conrad resigns, the California Department of Insurance announces that is investigating the startup's business practices. More

Bloom Technologies impresses Richard Branson to win the Extreme Tech Challenge startup contest. More

GOP presidential candidate Marco Rubio wants some radical changes to the tax code. But the numbers don't add up, according to a new analysis. More