A British hedge funder dealer has been sentenced to 12 years in jail in Denmark over a £1bn tax fraud.
Sanjay Shah, 54, was behind a buying and selling scheme often known as “cum-ex” that was discovered to have fraudulently secured 9bn Danish Krone (£1bn) in dividend tax refunds from the Danish treasury between 2012 and 2015.
Shah, who appeared in court docket sporting a crimson Christmas hat, denied any wrongdoing, arguing he used a authorized loophole and instantly appealed the responsible verdict to the Danish Excessive Courtroom.
Prosecutors sought the utmost 12-year sentence, which is without doubt one of the longest for tax fraud within the nation’s historical past.
Shah was arrested in Dubai in 2022 and extradited to Denmark the next 12 months to face prosecution.
Prosecutors stated buyers, directed by Shah’s London-based hedge fund Solo Capital Companions, quickly traded shares round dividend pay-out day, creating an phantasm of quite a few homeowners, every seemingly eligible for tax refunds on dividends.
Shah stated in court docket that the trades had allowed contributors to say possession of shares, thus being entitled to tax refunds even when they didn’t personal the shares and by no means paid any dividend tax in Denmark.
In an interview with Danish broadcaster TV2 earlier than the decision, Shah referred to as himself “a greedy bastard” and stated his buying and selling scheme had been “like playing Space Invaders,” the place he needed to beat his earlier excessive rating.
He’s individually going through a £1.44bn civil tax fraud case in London’s Excessive Courtroom, which was filed by the Danish tax authority and is predicted to conclude in April.
Shah beforehand instructed the court docket by video-link from Denmark {that a} authorized “defect” had allowed a buying and selling technique that turned so profitable that he purchased a Ferrari and paid himself a £19m bonus when he turned 40.
