German Court Declares Prominent Banker's Trial Unfit for Health Reasons

A regional court in Germany has ruled that 82-year-old banker Christian Olearius is unfit to stand trial for health reasons. Olearius was accused of involvement in a 10 billion euro tax fraud scheme known as 'cum-ex.' Both prosecution and defense had requested the termination of the trial.

A German regional court ruled on Monday that a prominent banker who was accused of playing a role in an alleged 10 billion euro ($10.7 billion) tax fraud scheme was no longer fit to stand trial for health reasons. Earlier this month, both prosecutors and defence lawyers requested the termination of the criminal trial of the banker, Christian Olearius, who is now 82 years old.

The move by the Bonn court on Monday granted that request. Olearius, the former CEO and chair of Hamburg-based bank M.M. Warburg, has always maintained that he did nothing wrong.

In the scheme, known as "cum-ex" or dividend stripping, banks and investors would swiftly trade shares of companies around their dividend payout day, blurring stock ownership and allowing multiple parties to falsely reclaim tax rebates. Prosecutors had originally identified damages of nearly 280 million euros, while Olearius' defence sought acquittal. ($1 = 0.9321 euros)