Deutsche Bank admitted criminal wrongdoing and agreed to pay more than $550 million in connection with its participation in tax shelters that enabled the rich to avoid paying hundreds of millions of dollars in U.S. taxes, authorities announced Tuesday.
Federal prosecutors and the Justice Department's tax division announced the deal, saying a nonprosecution agreement requires the bank to continue cooperating and to submit to the appointment of an independent expert who will review its compliance measures and ensure it does not help people dodge taxes in the future.
Authorities said the $533,633,153 payment by the bank will include that amount of taxes and interest that the Internal Revenue Service was unable to collect from taxpayers from 1996 to 2002 because of the misconduct. It also includes a civil penalty of more than $149 million.
In a statement, Deutsche Bank said it was pleased that the investigation had been resolved.
"Since 2002, the bank has significantly strengthened its policies and procedures as part of an ongoing effort to ensure strict adherence to the law and the highest standards of ethical conduct," it said. The bank said the payment had already been accounted for and would not have any impact on current net income.
Bank spokesman John Gallagher said the company had no additional comment.
U.S. Attorney Preet Bharara said in a news release that the bank provided a detailed statement of facts describing its wrongful conduct.
The nonprosecution agreement bans the bank from involvement with any prepackaged tax products of the type the bank had previously offered, according to the release.
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