In a landmark ruling that marks one of Denmark’s most significant financial crime cases, British hedge fund trader Sanjay Shah has been sentenced to 12 years imprisonment for orchestrating a £1.3 billion tax fraud scheme against the Danish government.
Shah, who was extradited from Dubai in 2023, masterminded an intricate ‘cum-ex’ dividend scheme that resulted in the refunding of billions of euros in dividend taxes that were never actually paid. The Danish court’s ruling represents the harshest sentence ever imposed for an economic crime in the country’s history.
The court in Glostrup emphasised Shah’s “central and controlling role” in the meticulously planned operation, which processed thousands of fraudulent dividend refunds over three years. The scheme only ceased when Danish tax authorities grew suspicious and halted payments in 2015.
In a remarkable post-sentencing interview with TV2, Shah described himself as “a greedy bastard” and compared his systematic defrauding of the Danish treasury to “playing Space Invaders,” where he constantly sought to surpass his previous achievements.
The case forms part of a broader European investigation into cum-ex trading practices, with German prosecutors currently examining 1,500 individuals. Shah and his hedge fund, Solo Capital Partners, face additional legal challenges, including a British civil lawsuit brought by Denmark’s tax authority seeking to recover £1.4 billion in refunds.
Shah maintains his innocence, claiming he merely exploited existing loopholes in Danish law. His legal team has announced their intention to appeal the verdict, questioning the fairness of the trial after several Danish government officials, including Foreign Minister Lars Løkke Rasmussen, made public statements about the case.
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