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CRIME

Taxman rakes in hundreds of millions thanks to stolen bank data

Germany is still raking in hundreds of millions of euros from tax dodgers thanks to stolen Liechtenstein bank information purchased in 2008, just as new Swiss data is scaring droves of offenders to turn themselves in.

Taxman rakes in hundreds of millions thanks to stolen bank data
Photo: DPA

According to daily Süddeutsche Zeitung, some €626 million in back taxes have flowed into government coffers due to voluntary disclosure from offenders as authorities at the Bochum public prosecutor’s office probe a list of Liechtenstein bank data provided by an informant in February 2008.

The office has finished 244 of the 596 cases in the affair involving LGT Treuhand, a former subsidiary of the LGT Group – work which has garnered an additional €161 million, the paper said.

The tax fraud scandal that followed the sale of the bank data two years ago pointed to some of Germany’s top earners, among them former Deutsche Post boss Klaus Zumwinkel, who was sentenced to two years probation and a fine of €1 million in January 2009.

But in another case involving LGT Treuhand, a Bad Homburg business man won millions in damages in a suit against the bank for failing to reveal that his information was stolen along with hundreds of other account holders and sold to German authorities for a criminal investigation. He argued that if the bank had informed those on the list that their data had been sold, they could have turned themselves in, receiving temporary amnesty and much lower fines.

Bochum investigators told Süddeutsche Zeitung they plan to finish their cases regarding the Liechtenstein bank in the next year, meanwhile a more recent case of stolen Swiss data bought by the German government is expected to bring in significantly more hidden tax money.

Tax officials report that some 13,000 people nationwide have turned themselves in for tax fraud following the government’s decision to buy stolen bank data on secret accounts at Swiss banks early this year, daily Rheinische Post reported on Wednesday.

According to the paper, these reports – which have come mainly from the states of Baden-Württemberg, Bavaria, North Rhine-Westphalia and Hamburg – could bring in more than €1 billion.

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CRIME

German police swoop on gang of foreign dating scammers

German police said Wednesday they had arrested 11 suspected members of a Nigerian mafia group behind a large-scale dating scam.

German police swoop on gang of foreign dating scammers

The Black Axe gang was involved internationally in “multiple areas of criminal activity”, with a focus in Germany on romance scams and money-laundering, Bavarian police said in a statement.

The dating trick was a “modern form of marriage fraud”, police said.

“Using false identities, the fraudsters for example signalled their intention to marry and in the course of further contact repeatedly demand money under various pretexts,” police said.

The money was subsequently transferred to Black Axe in Nigeria “via financial agents”, authorities said.

In the process, the gang used a “commodity-based money laundering” scheme where products, often with a seeming “charitable purpose” were bought and delivered to Nigeria.

Some 450 cases of romance scamming had been reported in the region of Bavaria in 2023 alone, with the damages rising to 5.3 million euros ($5.7 million), police said.

The suspects, who all held Nigerian citizenship and were aged between 29 and 53, were arrested in nationwide raids on Tuesday.

Law enforcement swooped on 19 properties, including both homes and asylum shelters, police said.

The Black Axe gang had “strict hierarchical structures under leadership in Nigeria” operating different territorial units, police said.

The group had a “significant influence” on politics and public administrations, in particular in Nigeria.

Globally, the gang’s main areas of operation were “human-trafficking, fraud, money-laundering, prostitution and drug-trafficking”.

Black Axe operated under the cover of the Neo Black Movement of Africa, an ostensibly charitable organisation used as “camouflage” for the gang’s structures.

The action against Black Axe was the first of its kind in Germany, police said.

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