Julius Baer was fined 5 million euros ($5.5 million) in mid-March in connection with the so-called «Crépuscule» (Twilight) case, in which it was accused of pocketing value-added-tax proceeds from the sale of CO2 certificates, according to a report from «AFP». In addition, the bank was ordered to pay 400,000 euros restitution to the French government.

The bank which had to post bail of 3.75 million euros during the proceedings, denies culpability in the case and intends to appeal the verdict. 

Where's the Money?

The acts in question date back to 2008, according to AFP, where CO2 emission rights were purchased at a tax-exempt price and then resold in France at a price including VAT. Somewhere along the way, VAT proceeds didn't end up where they were supposed to, but rather in the company's pockets. Other banks have also been convicted in connection.

In addition to the fines and restitution, twelve individuals were punished, with some to serve prison sentences of up to ten years. All told, the VAT tax dodge raked in 146 million euros.

The French government is estimated to have lost 1.6 billion euros in total revenues from such fraudulent schemes in the first decade of the new millennium.