Norton Rose Fulbright's Frankfurt offices are being raided by Cologne prosecutors as part of their vast investigation into the controversial Cum-Ex scandal that has swept up Wall Street's biggest banks.
The law firm was raided on Tuesday, according to two people familiar with the matter. A Norton Rose spokeswoman said didn't immediately comment.
A spokesman for Cologne prosecutors said his agency is raiding a law firm in Frankfurt without disclosing its name. Investigators are also searching the home of a former law firm employee as well as his new workplace. More than 45 officers are involved and are also looking for evidence of deals similar to Cum-Ex, the spokesman said.
Cum-Ex was a trading strategy that siphoned off at least €10 billion ($11 billion) in government revenue. The deals took advantage of German tax laws that seemed to allow multiple investors to claim refunds of a tax on dividends that was paid only once. The nation moved to abolish the practice in 2012.
While dating back more than a decade, the Cum-Ex scandal continues to roil the financial industry. Prosecutors in Cologne are investigating more than 1,500 people and are ramping up the pressure on international banks.
Bank of America Corp.'s Merrill Lynch premises have been targeted in recent months along with Morgan Stanley and JPMorgan Chase & Co. Barclays Plc's Frankfurt office was also hit by prosecutors. Bank of New York Mellon's Frankfurt offices were raided in November.
