Bochum, Germany - German prosecutors on Friday charged former Deutsche Post chief executive Klaus Zumwinkel with tax evasion in connection with funds salted away in the Alpine principality of Liechtenstein.

Zumwinkel, 64, was detained in February after prosecutors obtained evidence from Germany's BND foreign intelligence service on trusts managed by the Liechtenstein Bank LTG on behalf of wealthy tax-shy Europeans.

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

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

Reports say he cheated Germany out of 1 million euros (1.29 million dollars) in taxes. If convicted he could face jail and a hefty fine.

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.

The first multi-millionaire up for trial received a suspended term of two years' jail in July for evading 7.5 million euros in tax between 2001 and 2006 and was told to pay another 7.5 million euros to charity.

Prosecutors in Bochum said they have opened inquiries against about 800 tax dodgers all over Germany. Under German tax law, they were supposed to report all dividends and interest earned abroad by trusts that they fully controlled.

Liechtenstein has denied abetting tax evasion, saying it is up to bank clients to honestly report their income in their home nations. (dpa)