Frank Siebelt and Paul Carrel by Tom Sims

FRANKFURT (Reuters). – The chief executive of Deutsche Bank (ETR:) DWS, asset manager at DWS, will be retiring next week. He announced this Wednesday after police raided the office over claims that DWS misled investors on “green” investments.

German prosecutors conducted raids at DWS and Deutsche Bank headquarters on Tuesday after the business was plagued for several months by these accusations.

German officials are investigating claims that DWS exaggerated its green credentials for investments sold. This practice is known as “greenwashing” and has been investigated by whistleblowers. DWS repeatedly denies that it has misled investors.

Asoka Wehrmann, the outgoing CEO, stated in memo to employees that DWS was wonderful but that “allegations …, even unfounded and undefendable” had left an impression.

He said, “To quote Charles Dickens, it was both the best and the worst times” in the memo that was seen by Reuters.

German prosecutors stated Tuesday that sufficient evidence had been presented to prove that ESG factors (e.g., environmental, social and governance) were considered in some investments but not in large numbers of others. This is contrary to the statements made in prospectuses for DWS funds.

Last year, the U.S. Securities and Exchange Commission and BaFin (German financial watchdog) launched separate investigations into whistleblower’s claims. Former head of sustainability for DWS had claimed that DWS overstated its use sustainable investing criteria in managing investments.

DWS shares fell 20% after the August 2012 public disclosures of SEC/BaFin investigations.

Deutsche Bank and DWS said Tuesday that DWS had previously cooperated with authorities and regulators in the past, and will continue doing so.

Woehrmann will be replaced by Stefan Hoops from June 10, according to Deutsche Bank.

Woehrmann’s resignation comes into effect at its annual general meeting on June 9.