British Hedge Fund Trader And Main Suspect In the Cum-Ex Scheme Extradited To Denmark!

Sanjay Shah extradited to Denmark to be tried over Cum-Ex scheme
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Sanjay Shah, a British hedge fund trader, has been extradited from the United Arab Emirates to Denmark to face trial over allegations of a massive tax fraud scheme, Reuters reported. Shah, arrested in Dubai last year at the request of Danish authorities, is the main suspect in a “cum-ex” tax fraud case involving fraudulent applications for $1.8 billion in dividend tax refunds. He has consistently denied any wrongdoing.

The extradition, based on a decision by the Court of Cassation in Dubai and the resolution by the UAE Minister of Justice, was reported by the state-run UAE news agency WAM. Danish prosecutors are seeking to have Shah held in police custody until his trial scheduled to start on January 8.

Danish Justice Minister Petter Hummelgaard regards the case as one of the country’s most significant and serious instances of financial fraud. Despite the gravity of the allegations, Hummelgaard emphasized the principle that no one is considered guilty until convicted.

The “cum-ex” schemes, which emerged after the 2008 financial crisis, involved rapid share trading among banks, investors, and hedge funds to exploit the tax systems in countries like Denmark, Germany, and Belgium. These schemes have led to bank raids, arrests, and prosecutions across Europe.

Denmark has charged nine British and U.S. citizens over these schemes, resulting in losses of more than 12.7 billion Danish crowns ($1.8 billion) for the country. Shah’s extradition marks a significant development in the ongoing investigation and efforts to bring those responsible to justice.

Chris Waters, a partner at the London-based law firm Meaby & Co, coordinating Shah’s defense, expressed disappointment at the extradition decision. He reiterated Shah’s belief in the lawfulness of the trades in question. Last month, the UK Supreme Court ruled against Shah, allowing Denmark’s tax authority to pursue him and others in London over the alleged offenses, setting the stage for a year-long civil trial starting next April.

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