A former Freshfields Bruckhaus Deringer lawyer who advised top investment banks on how to navigate the “Cum-Ex” trading strategy at the center of Europe’s biggest tax scandal admitted that he turned a blind eye to clients’ activities, saying he “totally failed” in his role as an attorney.
In a dramatic confession, Ulf Johannemann, the firm’s ex-head of global tax, on Monday told the judges at his Frankfurt trial he wrongfully cleared Cum-Ex deals at Maple Bank GmbH. He said his approach was to make possible whatever clients wanted by pushing aside his own view of the law and not asking any questions.
“In reality, I didn’t want to know the whole truth,” Johannemann said. “I shouldn’t have remained silent for so long, but should have been much more critical. That also belongs to the responsibilities of a lawyer.”
His admission came two weeks after he was told by judges to expect a conviction over advice he gave to now-defunct lender Maple Bank for transactions that allegedly cost Germany €374 million ($408 million). The lawyer is on trial over his legal work on transactions that took place from 2006 to 2009 to obtain illegal tax refunds.
For the London ranks of global investment banks, Freshfields was the go-to for advice on Cum-Ex — a ploy that gamed the system to pass vast sums from Germany’s treasury into the hands of scores of investors and banks. The list of clients ranged from JPMorgan, Merrill Lynch, Barclays Plc, Lehman Brothers and Fortis to Macquarie Group Ltd. and ICAP Plc. Without clearance from a top-notch law firm, none of them would have done the controversial trades.
The move to charge data aggregators fees totaling hundreds of millions of dollars threatens to upend business models across the industry.
The latest snapshot report reveals large firms overwhelmingly account for branches and registrants as trend of net exits from FINRA continues.
Siding with the primary contact in a marriage might make sense at first, but having both parties' interests at heart could open a better way forward.
With more than $13 billion in assets, American Portfolios Advisors closed last October.
Robert D. Kendall brings decades of experience, including roles at DWS Americas and a former investment unit within Morgan Stanley, as he steps into a global leadership position.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
