Bank provided services to clients exploiting tax loophole, Lender says it never directly participated in Cum-Ex deals. The documents were obtained as part of a European media investigation coordinated by non-profit newsroom Correctiv. Numerous probes are ongoing. German prosecutors say the schemes participants misled the government into thinking a stock had multiple owners on its dividend payday who were each owed a dividend and a tax credit, according to court documents. A Deutsche Bank executive is suing a son and a brother of Delaware Sen. Joe Biden for at least $10 million over a deal they had to buy into a hedge fund, according to court documents. NEW YORK, May 18 (Reuters) - Deutsche Bank (DBKGn.DE) has appointed Joe Salama, its U.S. general counsel, as global head of anti-financial crime (AFC) and group anti money laundering officer, the bank said in a memo to employees on Tuesday. Reuters could not find any remaining parts of Ballance. [6], According to the Financial Times Deutschland Ackerman earned 9.4million in 2009 and 8.8million in 2010. He served as chairman of the board from 2002 to 2012. FRANKFURT, Jan 27 (Reuters) - Deutsche Bank delivered its most profitable year in a decade on the back of a dealmaking bonanza, strengthening Chief Executive Christian Sewing's hand as he. Corporate title. Stephan and his team has developed, and commenced implementation of, the banks AFC Strategy to address the foundational requirements for robust financial crime risk management. They are dated from 2013 to 2015 and marked highly confidential. Now, its approaching the highest levels of the German lender, with three key figures -- investment banking chief Garth Ritchie, former co-Chief Executive Officer Anshu Jain and his predecessor Josef Ackermann -- among 80 suspects linked to the bank and being probed by prosecutors in the so-called Cum-Ex affair, according to people familiar with the matter. [18], In August 2014, Penna was announced as the host of Xploration Earth 2050, a technology-oriented television series. Some Deutsche Bank AG managers may have discussed the reputational risk of issuing withholding tax certificates at the center of a "cum-ex" share trading scheme, Reuters reported Jan. 4, citing an audit by Freshfields. But the German lender profited from servicing customers that specialized in such transactions, according to people familiar with a German criminal investigation and an internal review seen by Bloomberg. The bank issued tax certificates for withholding tax that had never been deducted and made loans to clients to allow them to participate in the scheme to claim tax rebates, according to the audits. Best Buy announced Penna as the $15,000 winner of their Tech-U-Out Video Challenge. Joe Ravi // Shutterstock Show More Show Less. Deutsche Bank commissioned law firm Freshfields to write the five audits as part of an internal investigation into its role in cum-ex trading between 2006 and 2011. He declined to comment further. City. [8] On December 6, 2009, Penna was featured on FM4, an Austrian national radio station. Prior roles include Americas Head of Litigation and Head of Legal for the Non-Core Operations Unit. AFC remains to be critically important. Ballance Overseas Management Ltd., a London-based entity where he was a director, became a client of Deutsche Banks prime brokerage in February 2010 and had borrowed about 404 million euros within months, U.K. filings show. As a result the AFC team has grown to over 1,600 people. Jnatas "Joe" de Moura Penna (born May 29, 1987) is a Brazilian musician and filmmaker best known from both his YouTube channel MysteryGuitarMan and his feature films. On Monday, Frankfurt prosecutors raided residential and business locations in an investigation unrelated to Deutsche Bank. Some of the companys units organized shares used by short sellers, cooperating with staff remaining at Deutsche Bank who are also being investigated, according to the people. Investments in improving data and technology continue. Some Deutsche Bank managers may have discussed the reputational risk of issuing withholding tax certificates at the center of a [3], By January 2011, MysteryGuitarMan became the most subscribed channel in Brazil. In order for the scheme to work, Deutsche Bank would loan money to firms which would then make trades which, in turn, they could then claim tax credits on. Copyright 2023 Ministry of Information. Group Tax confirmed in March 2009 the provision of leverage for cum-ex trades through Deutsche Bank. A Deutsche Bank spokesman said that Deutsche Bank was involved in some of its clients cum-ex transactions and that it was fully cooperating with investigators. Photographer: Krisztian Bocsi/Bloomberg [14], In June 2010, Penna was highlighted by CNN Money on their Best Jobs series. One of the five documents is a summary that was handed to the prosecutors in May 2017. On this Wikipedia the language links are at the top of the page across from the article title. Our Standards: The Thomson Reuters Trust Principles. [24] Its theatrical premiere was on February 1, 2019. Attempts to reach Penna were unsuccessful. In 2007, Penna was one of the first YouTube channels to receive mainstream media coverage, including attention from DC Fox News,[7] after his video The Puzzle was featured on the front page of YouTube. (Bloomberg) -- For over a decade, one of the biggest financial scandals in German history has been snaking its way through Deutsche Bank AG. A German probe found that Deutsche Bank even had a profit-sharing agreement with one firm that specialized in the transactions, according to people familiar with the findings. [4], Ackermann agreed at the end of 2009 to continue as chief executive of Deutsche Bank for another three years until 2013. Deutsche Bank said that it never "participated in an organized Cum-Ex market, neither as a short seller nor as a Cum-Ex buyer." The audit dated April 16, 2015 pointed to significant failings in overseeing two traders, Simon Pearson and Joe Penna, who they say acted as middle men between the clients and the bank departments that lent money to fund the cum-ex scheme and issued tax certificates. As it attempts to stymie ongoing losses, it has also been caught up in Danske Banks Estonian Money Laundering One part of the audit addresses Deutsche Banks decision to lend money to companies what the audit calls provision of finance so that those companies could carry out cum-ex trades and the discussion of risks to its reputation. 2/5/2023 1:06 AM. All quotes delayed a minimum of 15 minutes. Sha'ban 11, 1444 H, EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI. Editing by Peter Graff, US Justice Dept warns of steeper penalties for firms that fall foul of messaging policies, Analysis: US Republicans aim to stymie gun sale codes at state level, Factbox: A look at proposed US state laws to curb new gun merchant code, Biden administration announces plan to stop water plant hacks, American Airlines, flight attendants union seek mediation in contract negotiations, Media report that UAE considering leaving OPEC not true - sources, Private equity firms lend less as demand cools, Nissan and Mexican workers agree to 9% raise at Morelos plant, union says, Brazil's Petrobras faces legal risks after halting asset sales -lawyers, Exclusive news, data and analytics for financial market professionals. [10] Penna's "Guitar: Impossible" video was also featured by YouTube as one of the best videos of 2009. The new details of the case come at a difficult time for Deutsche Bank as it tries to repair its public image and relations with Berlin after a series of fines relating to other trading scandals. Joe has been with the bank for more than 10 years and currently serves as Global Head of Litigation & Regulatory Enforcement and General Counsel for the Americas. Priti and Shilpa found work-family balance when they resumed their careers. The industry leader for online information for tax, accounting and finance professionals. The documents, seen by Reuters, suggest that Deutsche traders discussed the associated reputational risk and concluded that it was acceptable, although they add that the evidence is "not clear-cut.". Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". [15], His stop-motion short film Guitar: Impossible was selected to be displayed at the Guggenheim museum. Subject to regulatory approvals, Salama will succeed Stephan Wilken on July 1, Stefan Simon, Deutsche Bank's Chief Administrative Officer, said in the memo. PDF PDF (Q1 2018 results) PDF PDF (Ad-hoc release strategy) PDF PDF (Release strategy) PDF PDF (Q2 2018 segment and financial statements structure) XLS (Q2 2018 segment and financial statements structure) PDF PDF. Terms, Cookies Deutsche Bank commissioned law firm Freshfields to write the five audits as part of an internal investigation into its role in cum-ex trading between 2006 and 2011. Many of you know him as a great team player across the regions and a true culture carrier. To contact the reporters on this story: Karin Matussek in Berlin at kmatussek@bloomberg.net;Donal Griffin in London at dgriffin10@bloomberg.net, To contact the editors responsible for this story: Anthony Aarons at aaarons@bloomberg.net, ;Sree Vidya Bhaktavatsalam at sbhaktavatsa@bloomberg.net, Christopher Elser, Chris Reiter, {{data.symbol | reutersRICLabelFormat:group.RICS}}, {{ stock | formatPrefix }}{{ stock.netChng | formatNetChange }}. He has also been a member of the influential Washington-based financial advisory body, the Group of Thirty. [13] A year later, Penna directed and starred in yet another commercial for the two companies. It was reported in December 2018 that Deutsche had agreed to pay 4 million to settle an investigation by Frankfurt prosecutors into its involvement in the so-called cum-ex trades. In November 2014 he was elected as chairman of the board of directors of the Bank of Cyprus following the proposal of the new major shareholder of the bank Wilbur Ross, who later became the Commerce Secretary in the Trump Administration. Reuters also contacted his spokeswoman by email, who did not respond. Barclays Capital, and Deutsche Bank. 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German prosecutors say the schemes participants misled the government into thinking a stock had multiple owners on its dividend payday who were each owed a dividend and a tax credit, according to court documents. Seriva obtained withholding tax certificates from DB Frankfurt, the report said, adding later: Employees of DB London knew that no withholding taxes had been levied.. Authorities grew suspicious and refused to pay Nummus any tax refunds, according to a public filing. A person involved in the case gave Reuters the name of a lawyer he said represented Pearson and Penna. Joe Penna Deutsche Bank Alias or nickname Find other people named Joe Pennas General Info at Deutsche Bank Not who you're looking for? Company profile for Deutsche Bank AG including key executives, insider trading, ownership, revenue and average growth rates. Sign Up. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Joe Salama succeeds him as bank's Americas general counsel. He will report to me and become a member of my Executive Committee. Pearson and Penna have been suspects in the investigation since at least 2014 for their role in cum-ex trading, according to court documents. [8], Days after retirement and on the eve of a conference call by G7 finance ministers and central bank governors on the continuing European debt crisis, Ackerman said in a speech to the Atlantic Council that "Germany will ultimately take whatever steps [are] necessary to keep the euro zone intact", according to one report. One part of the audit addresses Deutsche Banks decision to lend money to companies what the audit calls provision of finance -- so that those companies could carry out cum-ex trades and the discussion of risks to its reputation. View detailed DB description & address. Ford selected Penna as a Fiesta Agent for the 2009 Ford Fiesta Movement. Will greater investment in water resources make for a more sustainable future? Joe will play an important role in this review. In recent years, Joe has negotiated almost all of our major AFC-related legal settlements and has been a key contact for our monitors as well as for regulators and enforcers worldwide. For over a decade, one of the biggest financial scandals in German history has been snaking its way through Deutsche Bank AG. Contact. Money Laundering Deutsche Bank AG has a new leader for its U.S. entities in Steven Reich, previously general counsel for the Americas at the German . It granted one fund a loan of 942 million euros for the trades; another, 743 million euros. College of the Holy Cross - Mid-career pay: $127,100 - Early career pay: $65,600 - Percent high meaning: 48% . Last year, Deutsche Bank settled a probe by Frankfurt prosecutors into the Nummus work for 4 million euros. Joe Penna. /marketintelligence/en/news-insights/trending/bNfD9yUmwF2-mqAqA1EEoQ2 Saint Joseph's University, +1 more. News. View Joe Pehar's profile on LinkedIn, the world's largest professional community. They are dated from 2013 to 2015 and marked "highly confidential". Like(s), Event Deutsche Bank said that it never participated in an organized Cum-Ex market, neither as a short seller nor as a Cum-Ex buyer. It acknowledges that as a major participant in the capital markets, Deutsche Bank was involved in Cum-Ex transactions of its clients and said it is cooperating with the authorities. Contact Head Office U.S.A. Deutsche Bank One Columbus Circle New York, NY, 10019 Telephone: +1(212) 250-2500 Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Its anti-money laundering and financial crime procedures continue to be the subject of scrutiny from regulators. German authorities say that dozens of banks and brokerages in London and other global financial hubs helped investors siphon off billions of euros from the national treasury with the transactions over the course of a decade. Deutsche Bank launched its US intermediate holding company, DB USA Corporation, on July 1, 2016, under which most of its US-based operations were consolidated as required by the Dodd-Frank Act. It garnered international attention. [12], Following the success of the original, Penna and the original cast were hired to produce a national television and cinema spot for Coca-Cola and McDonald's. According to Deutsche Bank, "Monetary stimulus has been equally breath-taking. . December 20, 2022. Barclays Capital, and Deutsche Bank. Joe is currently based in Florida. Copy of Case 1 Did Info Systems Cause Deutsche Bank to Stumble; ECON 208 - Final Study Guide; Solomon Consumer Behaviour Chap 1 test bank; Sample/practice exam 2016, questions . Joe Penna Sr ESE at Phoenix Contact Independence, OH Joe Penna Principal Owner at PHNX Development San Juan Capistrano, CA 60 others named Joe Penna are on LinkedIn See others named. The Deutsche Bank spokesman declined to comment. Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. 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On this Wikipedia the language links are at the top of the page across from the article title. Are sustainable cities a solution to climate change? The practice was named after the Latin term cum/ex, meaning with/without, because the stocks were sold with and delivered without a dividend payment. Penna maintains the YouTube channel MysteryGuitarMan. or. [9] Shortly after uploaded, his "Guitar: Impossible" video was featured on the MSN.com front page. Regulators around the world vigilantly monitor the progress we have made, and we are working diligently to comply with the requirements. Each of these owners would then be eligible for a dividend and, significantly, a tax credit. He registered the channel on June 16, 2006. Joe will be based in Frankfurt and in New York to ensure close collaboration with all our regulators. Carson has since left Deutsche Bank. Prior roles include Americas Head of Litigation and Head of Legal for the Non-Core Operations Unit. He was also a finalist in the "Oreo Global Moments" video competition. He resides in Los Angeles, California. According to one of the Freshfields reports dated Nov 28, 2013, Deutsche lent shares to Seriva, a client involved in cum-ex, via a chain of brokers in 2008. Even though evidence is not clear-cut, there are a lot of indications that the staff of SETG (Strategic Equities Transactions Group) and managers, who were responsible for Prime Brokerage at the SEF-IM (Structured Equity Finance Inventory Management) trading desk, discussed the reputational risk for Deutsche Bank from its provision of finance in January 2009 and came to the conclusion that this was acceptable, one of the Freshfields audits said. Other global banks, including Santander and Macquarie, are also under investigation for their roles in cum-ex trading schemes. Group Tax confirmed in March 2009 the provision of leverage for cum-ex trades through Deutsche Bank.. A Deutsche Bank spokesman said that Deutsche Bank was involved in some of its clients cum-ex transactions and that it was fully cooperating with investigators. He was a non-executive director of Vodafone from 2000 to 2002. Deutsche also provided funding and acquired shares to help a company called Ballance carry out cum-ex deals multiple times between 2009 and 2011, the Freshfields documents say. The audits were prepared by Freshfields in Germany and London. Serivas manager, who asked not to be named, said that the company had received no rebates because of the investigation by tax authorities.