Bear Stearns sues ex-MD for $810,000 unpaid taxes

LONDON - Bear Stearns is suing a former managing director over $810,000 in alleged unpaid taxes. Hans Rudolf Kunz was formerly co-head of institutional equity sales for the investment bank until 2001. Bear Stearns alleges that, when Kunz resigned, he was given 93,962 shares, accumulated in the company share scheme. He sold the shares for $5.4 million but did not pay the $645,957 tax to which he was contractually bound - leaving Bear Stearns with the bill.

Kunz is now chief executive of London-based fund manager Blue Oak Capital. He denies that he owes the money on the grounds of exemption as a Swiss resident and is instead suing the bank for £100,000 in a counterclaim that Bear Stearns has affected his tax status. Bear Stearns says the tax bill, with interest, now stands at $867,000.