CUM-EX DIVIDEND FRAUD EXPLAINED

Our 101 CUM-EX dividend fraud explains how this fraud works and also details a range of businesses and individuals who are linked and those that are secondary linked to the businesses.

It is clearly very important AML operators check their systems for trades between the named entities herein and cross match with short sales of equity that is subject to dividend payout imminently .

CYW.SOLUTIONS can receive anonymous whistle-blowing reports for trades that have been made in German (or touch the German economy) or in USD. Please note we will assist whistle-blowers to be rewarded significant amounts if a case moves to prosecution and tax recovery. Up to 30% of tax reclaimed can be paid out to whistle-blowers in rewards. We stand ready to support any reporting persons with legal and operational help.

Cum-Ex frauds are essentially circular frauds where shares are purported to be bought and sold at the time of year the company is paying dividends. Some classes of share can lawfully reclaim tax paid on dividends and it is this the fraudsters seek to exploit.

Essentially, the company pays out a dividend and the lawful entity owning the shares receives a certificate from their bank to reclaim dividend tax. At the same time a second party, let’s call him a ‘broker’, short sells the same shares to a third party.

That third party, after the dividend is paid to the original owner receives the shares and immediately claims a tax certificate from the bank for buying the shares and getting a dividend. It is this second reclaim of tax that is the fraudulent one. Once the dividend tax certificate is received the third party sells the shares back to the original owner. In essence the broker has short sold the shares in order for the third party to reclaim the tax, that has never actually been paid.

The second reclaim is then shared amongst all three parties.

What can AML Operatives be on the look out for?

• Professional investors capital investment and hedge funds.
• Over complicated trades.
• Short selling with no apparent linked long term strategy.
• Repeat dividend payouts over 12 months for non-PLC’s
• Businesses tending to be LLCs/LLPs
• Banks issuing tax rebate certificates frequently and linking trades shortly after.
• Repeatedly trading the same shares from the same or similar named businesses.
• Noticing the same registered addresses or legal/natural persons linked.
• Utilising the same brokers/lawyers/investment managers/investors.

Blow the Whistle…

For any operator who cannot raise this internally or isn’t being listened to, speak to us anonymously through our application. It is encrypted and we will contract to secure your identity while we seek financial reward in the US or other jurisdiction.

Entities linked.

The below data either directly links a legal/natural person or does so through association. We do not warrant they are involved in criminality or suspected but simply linked to each other warranting AML department checks.

NB: We can supply more detailed data relating to the below entities, linking them graphically so you can see the connections to each other. Any enquiries for this via our contact form – Additionally, this list is not exhaustive, we have further data available relating to this OCG. To gain access to it please email us.

• People
  • Paul Robert Mora
  • Hanno Berger
  • Sanjay Shah
  • Martin Thomas Lester Shields
  • Nick Diable
  • Steven wim Blase
  • Christian Klar
  • Navjyot Dhillon
  • Nimesh Raghevendra Kamath
  • Andrew Peter Apps
  • Vincent Lee
  • Hamish Lachlan Robert Pritchard
  • Neil David Plumpton
  • Roger Frank Looker
  • Duncan John Heyes
  • Christopher East
  • Gary Brennan
  • Perry Christopher Wilson
  • Christopher Richard East (as above?)
  • Lance Vaughn Hill
  • Ashraf Khalil Meleka
  • Ernesto Orlando Chino Becker
  • Vincenzo Di Gennaro
  • Jamie Fox
  • Lance Hill
  • Christopher John Howland
  • Craig Colin Mason
  • Matthew William McClean
  • Tully McWhirter
  • Anthony Roger Victor Medina
  • James Mitchell
  • Daniel Gary Ayris
  • Peter Joseph Edward Burnett
  • Nicola Burt
  • Chi Pan Chan
  • Paul Edward Chesterman
  • James Frederick Connolly
  • Nigel Kenneth Dentoom
  • Jack Roy Exley
  • Andrew William Gooch
  • Benjamin George Hawthorne
  • Ran Huo
  • Anthony William Leek
  • Miranda Sau Ting Leung
  • Shoujian Liu
  • Anda Maltais
  • Malcolm Graham McCaig
  • Ashraf Khalil Meleka
  • Andrew Birse Silver
  • Michael John Thompson
  • Lifan Zhang
• Businesses Linked
  • Clearstream AG
  • AV Equity Trading Ltd
  • Commerzbank Ag
  • Barclays PLC
  • Deutsche Bank
  • Bank of New York Mellon Corp
  • Societe Generale
  • ArmVill LLC
  • Arunvill Capital UK Ltd
  • Arunvill Global Equity Trading Ltd
  • Arunvill Global Equity Trading Limited
  • Colman Capital LLP
  • Hollbeach Solutions LLP
  • Hollbeach Investment Management LLP
  • Aurium Capital Markets LLP
  • Aurium Capital UK Ltd
  • Ballance Capital LLC
  • Balance Capital UK Limited
  • Khadim Services Limited
  • Lepretre Insurance Services Limited
  • Musgrave Capital Partners Limited
  • Grosvenor Place Property & Investment Ltd
  • Fast Tech (London) Ltd
  • Sayyednasrin Ashraf Moosavi
  • Tosca Investments Ltd
  • First Estates
  • Cavendish & Gloucester Properties Limited
  • Manolia Homes Property Services Limited
  • V Capital Limited
  • Fossar Markets UK Limited
  • Belador Advisors UK Limited
  • Ballance Advisors UK Limited
  • Enness Private Clients Ltd
  • Waypoint Investment Management Limited
  • Enness Wealth Limited
  • Random Walk Partners LLP
  • Aurium Capital UK Ltd

• Addreses linked
  • 727-729 High Road, London, England, N12 0BP
  • 3rd Floor, 86, Brook Street, London, W1K 5AY
  • 83 Brook Street, London, England, W1K 5AY
  • 10 Norwich Street, London, EC4A 1BD
  • Geoffrey Martin & Co, 1 Westferry Circus, Canary Wharf, London, England, E14 4HD
  • 86 Clonmore Street, Southfields, London, United Kingdom, SW18 5HB
  • Norwood Farmhouse, Elvedon Road, Cobham, Surrey, KT11 1BS
  • 125 Old Broad Street, London, United Kingdom, EC2N 1AR
  • 86 Clonmore Street, Southfields, London, United Kingdom, SW18 5HB
  • 2nd Floor Dudley House, 169 Piccadilly, London, W1J 9EH
• Telephones linked
  • +44 02073828600
  • +44 02036513043
  • +44 02038788000
  • +44 02032079445
  • +44 02071013081

For a detailed analysis of the links between these entities and to gain the full network, contact us