A "cum-ex" scheme, also known as dividend stripping, is a tax avoidance scheme. The two UK bankers organized sham share trades to claim tax rebates twice. In the scheme, investors rely on the sale of borrowed shares right before an investor is required to pay dividends. The technical legalities around the trial have led to the case being branded "the most complicated" tax fraud case in history.
The conviction of the two bankers may be used as a precedent in similar trials, with such tax arrangements often toeing the line between legal loopholes and illegal activity.
The €14 million which Martin S. has been ordered to pay only makes up only a small proportion of the over €400 million which the two men amassed through their dealing.
Authorities doubt whether they will ever be able to recover the rest of the money.