The German prosecutor known for leading significant tax raids on major Wall Street banks involved in the billion euro Cum-Ex tax fraud scandal, Anne Brorhilker, has resigned from her position. Brorhilker, who has been at the forefront of prosecuting this complex financial fraud, accuses Germany of a lack of political support for effectively combating financial crimes.
The Cum-Ex tax fraud scandal involved complex share-swapping deals used to reclaim dividend tax that was never paid. It is estimated to have cost German taxpayers more than €10 billion ($10.8 billion) and European taxpayers in general over €55 billion ($59.6 billion).
Brorhilker expressed her frustration with the German legal system, which she believes allows powerful financial players to evade justice through their wealth and connections. She criticized the system for prosecuting minor offenders while letting major white-collar criminals walk away with fines. Her unexpected departure has been met with regret from the Cologne Prosecutors’ Office, which acknowledged her pivotal role in the investigations.
Despite facing internal criticism and challenges from her own state justice minister, Brorhilker had become a symbol of the fight against financial fraud. Her efforts had targeted several international investment banks, including Merrill Lynch, Morgan Stanley, and Barclays. However, her battle with the justice minister left her disheartened, contributing to her decision to leave.
The North Rhine-Westphalia Justice Ministry praised Brorhilker’s contributions to the Cum-Ex investigations and noted that efforts to address these crimes and bolster the investigative team were partly due to her influence.
Brorhilker announced her plan to join the leadership of Finanzwende, a political action group focused on financial industry reform. She remains committed as ever to justice and the rule of law.
Contributor
Guylian-Antoine Bouffioux is an associate at Jones Day,
specialising in corporate law, mergers and acquisitions,
private equity, and equity capital markets.
He is a qualified lawyer admitted to the Brussels Bar
