A British hedge fund trader, Sanjay Shah, has been extradited from the United Arab Emirates to Denmark to face trial for alleged involvement in a massive tax fraud scheme.
Shah is accused of submitting fraudulent applications for £1.44 billion ($1.8 billion) in dividend tax refunds as part of the “cum-ex” tax fraud schemes, a practice that took root after the 2008 financial crisis.
Shah’s arrest occurred last year when Dubai police detained him in response to a request from Danish authorities seeking his extradition.
He has consistently denied any wrongdoing. The extradition process was carried out in accordance with legal procedures, based on a decision by the Court of Cassation in Dubai and the approval of the Minister of Justice, as reported by the UAE’s state-run news agency, WAM.
Denmark’s prosecutors intend to seek an order to hold Shah in police custody until his trial commences on January 8th.
Justice Minister Petter Hummelgaard emphasized the significance of this case, referring to it as “one of our biggest and most serious cases of financial fraud.”
He also stressed the principle that no one is considered guilty until proven so in a court of law.
The “cum-ex” tax fraud schemes involved the rapid trading of shares within a syndicate of banks, investors, and hedge funds, exploiting the tax systems of countries like Denmark, Germany, and Belgium.
Investigations led by Germany and Denmark have led to bank raids, arrests, and prosecutions.
Denmark alone has charged nine British and U.S. citizens, alleging that the schemes have cost the country more than 12.7 billion Danish crowns ($1.8 billion).
Chris Waters, a partner at the London-based law firm Meaby & Co, which is coordinating Shah’s defense, expressed disappointment with the extradition decision.
However, he stressed that Shah has consistently believed that the trades in question were lawful.
In a previous legal battle, Shah attempted to block Denmark’s tax authority from pursuing him and others in London over the alleged offenses.
The UK Supreme Court’s ruling last month cleared the way for a year-long civil trial scheduled to commence in April, marking another significant development in this high-profile case.