Eleven Deutsche Bank middle managers are culpable in helping clients evade tax using the EU ETS, German magazine Focus reported today, citing a Mar. 27 report by tax investigators that has been sent to the Frankfurt prosecutors office.

A spokeswoman for the prosecutors would not comment on the article, saying only that 26 employees or former employees of a “large German bank” are under investigation – 17 on suspicion of tax evasion, five on suspicion of money laundering, and four for attempted obstruction of justice.

She said the investigations are ongoing.

A spokesman for Deutsche Bank’s German office declined to comment, citing the ongoing investigation.

Deutsche Bank’s Frankfurt offices were raided by tax investigators in late 2012 over suspicion the bank had played a role in facilitating tax evasion and money laundering within the EU ETS.

Focus reported that despite evidence of money laundering emerging in Nov. 2009, and internal warnings highlighting that the EU carbon market was showing signs of carousel fraud, the bank’s employees continued to deal with dubious clients.

Focus, citing the tax investigators, reported one employee as saying they continued with the business because they were “so greedy” and wanted to make “filthy” amount of money in the form of higher bonuses.

Dozens of people have been jailed across the EU since 2010 for their part in a tax fraud that authorities estimate has cost the bloc’s governments more than €5 billion in lost revenue.

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