Ulf Johannemann, a former lawyer of Freshfields Bruckhaus Deringer, who had advised leading investment banks to implement the ‘Cum-Ex’ trading strategy, centrally involved in Europe’s largest tax scandal, has recently been informed to likely expect a conviction for his actions. Bloomberg reports that Johannemann was the previous Global Head of Tax at Freshfields.
The ex-Freshfields lawyer is expected to be found guilty for the counsel he imparted to the now-insolvent lender, Maple Bank GmbH, for transactions that are assumed to have cost Germany as much as €374 million ($407 million). The presiding Judge, Werner Gröschel, announced this at a hearing in Frankfurt. The judicial panel scrutinizing the evidence seems to incline towards a verdict that Johannemann might have overstepped the boundaries of lawful counsel with his advice.
There is much anticipation in the legal community about the outcome of this case, considering its significant implications for attorneys and law firms providing legal advice to financial institutions. Should Johannemann be found guilty, it would serve as a strong precedent and likely modify how legal counsel is understood and practiced in finance. However, with the hearings still underway, Johannemann’s fate is yet to be irrevocably sealed.