Sanjay Shah Sentenced: The $1.3 Billion 'Cum-Ex' Scandal

British hedge fund trader Sanjay Shah was sentenced to 12 years for defrauding Denmark of $1.3 billion through a 'cum-ex' tax scheme. He argued legality due to a loophole but was found guilty of attempts to defraud for an additional sum. He plans an appeal.

In a landmark decision, British hedge fund trader Sanjay Shah was sentenced by a Danish court to 12 years in prison. Shah, 54, was found guilty of orchestrating a complex 'cum-ex' trading scheme that defrauded Denmark's treasury of $1.3 billion between 2012 and 2015.

Despite his defense's claims of using a legal loophole, the court found Shah guilty of further attempting to defraud an additional 553 million Danish crowns. Prosecutors argued for the maximum prison sentence; Shah plans to appeal the ruling.

The 'cum-ex' scheme involved rapid trading around dividend payout dates, creating the illusion of multiple ownerships for tax refund claims. This scandal has caused significant financial losses across European countries, prompting widespread legal actions.

(With inputs from agencies.)