Bochum, Germany - Former Deutsche Post chief executive Klaus Zumwinkel appeared in court Thursday to face charges of tax evasion related to funds hidden in the Alpine principality of Liechtenstein.

Zumwinkel, 65, is accused of concealing 966,000 euros (1.2 million dollars) from German tax authorities in trust funds managed by the LTG Bank in Liechtenstein.

He was detained in February 2008 after prosecutors obtained evidence from Germany's BND foreign intelligence service on trusts administered by the bank on behalf of wealthy tax-shy Europeans.

Released on bail after a search of his villa, Zumwinkel resigned shortly afterwards as head of Deutsche Post, one of the world's leading logistics companies with a global workforce of more 350,000.

Later, he stepped down from positions on the boards of other leading companies such as Deutsche Telekom, Lufthansa and retail concern Arcandor.

Prosectors say Zumwinkel set up a trust for himself in Liechtenstein in 1986 but failed to disclose earnings and dividends from it to German tax authorities, as required by law.

If convicted he could face jail and a hefty fine. Unconfirmed reports ahead of the trial said Zumwinkel would enter a plea of guilty in return for a reduced sentence.

The verdict is expected on Monday.

Zumwinkel was one of hundreds of wealthy Germans exposed when a Liechtenstein bank executive betrayed them by selling a DVD with details of their accounts to the BND for about 5 million euros.

Since then, German prosecutors have recovered more than 150 million euros in arrears from repentant taxpayers hoping to ward off trials. (dpa)