Germany uncovers suspected $600m tax fraud

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Associated Press

Posted on March 19, 2012 at 9:02 AM

BERLIN (AP) — German prosecutors say they are investigating 12 people suspected of setting up a massive €450 million ($600 million) tax fraud and money laundering scheme.

Frankfurt prosecution spokesman Alexander Badle said Monday more than 100 police officers have searched several apartments and offices, and two main suspects have been arrested.

The men — aged 51 and 54 years old — were not identified in line with German privacy laws.

Badle said the pair is suspected of running a Frankfurt-based financial firm but registering it in Cyprus to avoid paying taxes on "significant profits" in Germany. The firm was buying and selling stakes in other companies. Badle declined to elaborate.

He says the raids and arrests took place last week but weren't immediately disclosed.

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