Kai-Uwe Steck, once a key witness in the Cum-Ex scandal investigation, now faces demands to repay 50 million euros in embezzled tax funds, claiming these assets have disappeared. His testimony against former mentor Hanno Berger revealed extensive tax evasion schemes. Despite a trust confirmation, Steck’s financial disclosures raised suspicions, with only 11 million euros returned so far. Investigations into his assets reveal potential hidden wealth, while the prosecution insists he must not keep any gains from the scandal.
Unraveling the Cum-Ex Scandal: Kai-Uwe Steck’s Ongoing Legal Battle
For years, Kai-Uwe Steck played a pivotal role in assisting the public prosecutor’s office with the investigation into the notorious Cum-Ex scandal. However, as he faces the demand to repay the embezzled tax funds, he now claims that the substantial amounts have vanished. Recent investigations by WDR and SZ have traced the financial movements involved.
In the fall of 2022, Kai-Uwe Steck took the stand as a witness at the Bonn District Court, providing damning testimony against his former mentor and law partner, Hanno Berger, who was facing serious charges. Steck detailed how he, alongside Berger and various financial professionals, exploited loopholes in the tax system, draining billions from the German treasury through deceptive Cum-Ex transactions. He reflected on his actions with a blunt admission: ‘Greed eats brain.’
Promises and Surprises in Court
While testifying, Steck expressed his commitment to return 50 million euros that he reportedly received from the illegal Cum-Ex scheme. He stated, ‘I transferred over 50 million euros to a trust account, irrevocably disposed of this wealth, so to speak: I can no longer buy a house with it and cannot take pleasure trips.’ His remarks suggested that restitution to the treasury was merely a formality.
His assertion was supported by a trust confirmation from a Swiss auditor dated October 18, 2022. In contrast to Berger, who received an eight-year prison sentence, Steck had hoped for leniency due to his cooperation in the investigation. However, a shocking revelation came to light last Friday during his trial when the judge questioned him about his repayment promise. Steck’s response was unexpected: ‘I did not hand over 50 million to the trustee in cash, but a trust asset.’ He claimed that the trust assets he had invested in had plummeted in value due to the bankruptcy of the companies involved.
According to reports from WDR, NDR, and SZ, the Bonn District Court confirmed that Steck has only returned eleven million euros to date, leaving a staggering 39 million euros still unaccounted for. As investigations continue, the question arises: why did Steck wait until February 2025 to disclose the loss of his supposed assets? This lack of transparency raises serious concerns about the integrity of his claims.
Among the companies in which Steck allegedly invested was a startup named Biohacks, which was once valued at around 50 million euros. However, financial records revealed that the company struggled significantly, leading to its eventual bankruptcy. Despite inquiries, both the insolvency administrator and Steck have been unresponsive regarding the situation.
Furthermore, the board of directors of Biohacks AG included the trustee who confirmed the existence of Steck’s trust assets, presenting a potential conflict of interest. This raises further doubts: are these the only assets remaining from Steck’s Cum-Ex wealth? He previously estimated that he profited around 50 million euros from the scheme. Is it plausible that all of it has been lost, as he claims?
In the search for Steck’s hidden assets, one company in Luxembourg has come under scrutiny. Established around the time investigators began probing the law firm ‘Berger, Steck und Kollegen,’ this entity reportedly manages investments and is linked to Steck’s personal properties, including a finca in Mallorca. As of late 2022, this company reported a balance sheet total of 17 million euros, indicating potential undisclosed wealth.
Tracing Steck’s financial networks leads to various tax havens, including the British Virgin Islands and Luxembourg, and involves an insurance company from Liechtenstein, with Dubai frequently appearing as a point of interest. Notably, Steck’s name appeared in the ‘Dubai Uncovered’ leak, indicating ownership of a 600-square-meter apartment in the emirate, although he claimed he was merely a trustee for a larger investor.
Despite the ongoing legal proceedings against him being halted for health reasons, the questions surrounding his financial dealings remain unresolved. Steck’s recent ventures in cryptocurrency and attempts to attract investors in Dubai have also drawn scrutiny, yet he has remained tight-lipped about these activities.
As the trial progresses, Steck’s legal team argues that he should not face severe penalties considering the burden he has carried. However, the Cologne public prosecutor insists that given the 430 million euros lost to taxpayers due to the Cum-Ex models, Steck must not retain any of his ill-gotten gains. The presiding judge has suggested that maintaining this wealth would create an imbalance, indicating that Steck must meet his obligations to the state. Whether he will heed this advice remains to be seen as the trial unfolds.