US sues Deutsche Bank and other banks for $190M

AP News
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Posted: Dec 08, 2014 7:11 PM

NEW YORK (AP) — Federal authorities in New York have sued Deutsche Bank and other financial entities, alleging they dodged more than $100 million in taxes with some fancy financial footwork.

The lawsuit was filed Monday in Manhattan federal court. It seeks to recover more than $190 million in taxes, penalties and interest.

Manhattan U.S. Attorney Preet Bharara (buh-RAH'-ruh) says Deutsche Bank used shell companies to make tax liabilities disappear nearly 15 years ago.

Deutsche Bank spokeswoman Renee Calabro says the bank addressed the government's concerns about the transaction in a 2009 agreement with the IRS. She says the government had abandoned its theory the bank was liable. She says it's unclear why the government is pursuing the issue again but the bank will defend vigorously against the claims.