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 21,622.45 -18.30 -0.08%
Nasdaq 6,395.14 10.10 0.16%
S&P 500 2,476.08 2.25 0.09%
Treasuries 2.24 -0.03 -1.19%
Data as of 12:45pm ET
Company Price Change % Change
Bank of America Corp... 23.90 -0.16 -0.67%
Advanced Micro Devic... 13.76 0.21 1.55%
Kinder Morgan Inc 20.38 0.71 3.61%
Ford Motor Co 11.71 0.03 0.25%
General Electric Co 26.75 -0.19 -0.70%
Data as of 12:30pm ET
Sponsors

Sections

The Congressional Budget Office narrows its projection for when Treasury will run short on money if Congress doesn't raise or suspend the country's debt ceiling. More

New York to DC in half an hour. That's how long Elon Musk -- the serial entrepreneur who heads Tesla, SpaceX and, newly, The Boring Company -- says it will take you on a his new underground hyperloop network, which Musk said Thursday he "just received verbal [government] approval" to build. More

So you've finally started working and managed to save up a little cash. But with so many goals competing for your attention, what should you prioritize? More