Ireland-based funds and banks are being used by a group of hedge funds and traders to commit massive financial frauds worth billions of euros, targeting the tax authorities in European countries.
Surveyed Irish time, In partnership with German Newsroom Corrective and 15 other media outlets, reveals how much money created in Ireland and financial institutions in Ireland were used by the perpetrators of the project.
The scheme, known as Cum-X, is under thorough investigation by prosecutors in several European countries, who have declared it a fraud by a German federal court.
Through a complex series of consolidated financial transactions, a network of merchants, hedge funds, and banks were able to claim tax to pay multiple refunds for dividends paid only once, or in some cases.
The scheme was successful in buying and selling large quantities of shares at crucial times in the history of dividend-paying companies, confusing them as to whether they were eligible for a tax refund.
Academic experts estimate how much European tax authorities have lost due to past deals over the past 20 years, and similar projects called cum-cum are worth between 55 55 billion and 140 140 billion.
In the mid-2000s, the number of hedge funds and banks participating in pre-trading increased at the highest rate in years around the world.
A huge leak of documents collected by various authorities investigating the so-called cum-X files shows how much money was used by those involved in Irish money and financial institutions.
Although not targeted by the Irish tax authorities, Ireland has played an important role in facilitating the project. Many individuals created trusts as a means of trade in Ireland and demanded tax refunds from the larger countries of the European Union, one of the main goals of Germany.
The Dublin offices of two major international banks, Investec and BNP Paribas, have been used by insider emails and prosecutor files in previous transactions.
The Bank of Ireland Securities Services (BOISS), the money management unit of the Bank of Ireland, was used by a major company involved in the transactions. Boise was the custodian of the 2011 EQI Irish Funds, which was responsible for maintaining the fund’s assets and processing its transactions, a major role in previous transactions.
Boise Bank later bought Northern Trust, a US financial services firm, which continued the transaction. The Irish Bank has held meetings and discussions with two other hedge funds involved in the former Vice President’s trading but has not dealt with them.
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