The German police raided several offices of the banking Giant- Deutsche Bank Wednesday Dec. 12, to investigate the tax evasion scheme on carbon trading permits, reported BBC News. Twenty five employees of the bank were accused of serious money laundering, tax evasion and various justice breaches, Frankfurt prosecutor's office told BBC News.

Around 500 policemen raided private properties of the bank in Berlin, Duesseldorf and Frankfurt, reported BBC News.

The employees were also accused of concealing and destroying important evidence on the issue, reported Deutsche Welle.

"Two of Deutsche Bank's Management Board members Juergen Fitschen and Stefan Krause are involved in the investigations as they signed the value-added tax statement for 2009," Deutsche Bank stated, reported Business Standard.

"As part of an ongoing investigation against individuals suspected of tax fraud connected with trading in carbon emissions certificates, prosecutors searched the premises of Deutsche Bank in Frankfurt," a bank spokesman told The Economic Times.

However, Juergen Fitschen has denied all the allegations and rejected all calls of resignation that the bank had sent him, reported Deutsche Welle.

"I feel I am being treated unfairly, and will defend myself against the accusations," Fitschen told DW.

"I am deeply shaken by the allegation," he added.

Fitschen has signed the tax declaration of €310 million ($407 million), which were found to be illegal by the German tax revenue service, reported DW.

This comes as another blow to Deutsche Bank's reputation. It has already been fighting two lawsuits in the U.K. and The U.S. bearing allegations of illegal asset trading and manipulation of Libor interest rates.