Sanjay Shah: Mastermind of Denmark's Biggest Tax Scam Sentenced

British hedge fund trader Sanjay Shah received a 12-year prison sentence from a Danish court for defrauding the country of $1.3 billion through a 'cum-ex' tax scheme. Despite his denial of wrongdoing and filing an appeal, Shah's conviction stands as one of Denmark's most severe tax fraud sentences.

In a landmark ruling, British hedge fund trader Sanjay Shah was sentenced to 12 years in prison by a Danish court for orchestrating a $1.3 billion tax fraud scheme. The 'cum-ex' case, reportedly one of the largest in Danish history, involved billions drained from public treasuries post the 2008 financial crisis.

Shah, 54, was found guilty of fraudulently obtaining 9 billion Danish crowns in dividend tax refunds. He denies wrongdoing, attributing the situation to legal loopholes, and has already filed an appeal to the Danish High Court. Notably, Shah's arrest followed extradition from Dubai in 2023.

Prosecutors had pushed for the maximum sentence, underscoring the precedence for strict actions against tax evasion. The case, involving intricate share trading via Shah's Solo Capital Partners, created false ownership claims, making traders eligible for tax refunds. Danish justice minister and tax authorities emphasize the significance of Shah's conviction as a deterrent.

(With inputs from agencies.)