By Ed Frankl

Nomura Holdings Inc. confirmed Wednesday that German authorities had searched its offices in Frankfurt as part of an investigation into tax fraud related to cum/ex trading.

"The Cologne public prosecutor attended Nomura's offices in Frankfurt in connection with an investigation into historic transactions in German stock around the dividend record date," Nomura told Dow Jones Newswires.

"We are continuing to cooperate with the authorities in their investigation," the company added.

Cum/ex transactions, a method in which investors rapidly traded stocks at dividend payout dates in order to fraudulently claim rebates, are estimated to have cost German taxpayers billions of euros.

German business daily Handelsblatt had earlier reported the searches.

The prosecutors office said it had been executing a search warrant since Tuesday against an investment bank based in Asia, without naming the company.

Its investigation was looking into the backgrounds and written correspondences of 37 employees who work or have worked at the bank.

"The measures are related to the cum/ex transactions that are the subject of the proceedings and related tax-evasion schemes," the prosecutors told Dow Jones Newswires.

Write to Ed Frankl at edward.frankl@wsj.com

(END) Dow Jones Newswires

April 26, 2023 06:53 ET (10:53 GMT)

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