Deutsche Bank ("DB") agreed to pay $553 million to settle Department of Justice charges that it was involved in fraudulent tax shelters.  The $553mn includes disgorgement of the fees DB collected, taxes that DB's clients evaded, prejudgment interest, and a civil penalty of $149 million.

    Additional Settlement Terms.   As part of the settlement, Deutsche Bank:

• admitted to criminal wrongdoing;
• disclosed a “detailed statement of facts setting forth its wrongful conduct;”
• received immunity from prosecution; 
• will be required to continue cooperating with the investigation;
• must install a government-appointed lawyer to monitor its ethics and compliance program - the government’s choice is Bart Schwartz, former federal prosecutor who's often sought in such thorny situations.  Mr. Schwartz was tapped in 2007 by the U.S. to monitor the trading policies of BP, to stave off prosecution for manipulating energy prices.  Hewlett-Packard hired him to assess the way it conducts investigations.

    Statement from Deutsche Bank.  "Deutsche Bank is pleased that this investigation, which concerned transactions that ceased more than 8 years ago, has come to a resolution."  Since 2002, the bank has significantly strengthened its policies and procedures as part of an ongoing effort to ensure strict adherence to the law and the highest standards of ethical conduct."    [NYT Dealbook ,12/21]