Deutsche Bank headquarters raided in transactions probe

FRANKFURT, Germany, June 9 (UPI) -- The Frankfurt, Germany, headquarters of Deutsche Bank AG was searched Tuesday in an investigation of tax fraud through customers' transactions.

Law enforcement officials sought evidence of "cum/ex" or "dividend stripping" transactions in which stocks are purchased, then sold and used to obtain a rebate on capital gains withholding which was never actually paid. Several German banks are under suspicion regarding use of the since-closed loophole.

"Today, offices of Deutsche Bank in Frankfurt are being searched on behalf of the Wiesbaden Public Prosecutor's Office. The search is related to an investigation into securities transactions by clients. Employees of the Bank are not accused of wrongdoing," a Deutsche Bank statement said Tuesday.

The bank has been the subject of numerous investigations in the past several years which have cost it over $10 billion in compliance costs, including a $2.5 billion penalty in April to settle charges in Britain and the United States regarding a worldwide interest-rigging scandal. The raid Tuesday came two days after Anshu Jain and Jurgen Fitchen, the bank's co-directors, announced they would resign amid questions about their leadership.

Germany has recently stepped up tax evasion investigations, and has signed a controversial agreement with the United States to share banking information.