By Hadeel Al Sayegh
DUBAI (Reuters) -The United Arab Emirates has extradited to Denmark British hedge fund trader Sanjay Shah, who is accused of submitting fraudulent applications for 1.44 billion pounds ($1.8 billion) in dividend tax refunds, state news agency WAM reported on Wednesday.
“UAE authorities today extradited accused Sanjay Shah, a British national, to Denmark, where he is wanted by judicial authorities for cases of tax fraud and money laundering,” WAM reported.
“Shah was extradited to Denmark’s security mission, according to legal procedures, based on a decision by the Court of Cassation in Dubai and the resolution by the Minister of Justice, who approved the extradition,” the agency reported.
A spokesperson for Shah did not immediately respond to a request for comment about his extradition when contacted by Reuters on Wednesday.
Shah was arrested by Dubai police last year following a request by Danish authorities to extradite him over an alleged $1.8 billion “cum-ex” tax fraud. He denies wrongdoing.
So-called “cum-ex” schemes, which flourished following the 2008 financial crisis, involved trading shares rapidly around a syndicate of banks, investors and hedge funds to exploit the tax systems of countries such as Denmark, Germany and Belgium.
Investigations led by Germany and Denmark have triggered bank raids, arrests and prosecutions. Denmark has charged nine British and U.S. citizens over the schemes, which it says have cost it more than 12.7 billion Danish crowns.
Last month, Shah lost a final bid to block Denmark’s tax authority from pursuing him and others in London over the alleged offences, in a ruling by the UK Supreme Court that cleared the way for a year-long civil trial to begin next April.
($1 = 0.7940 pounds)
(Reporting by Hadeel Al Sayegh, additional reporting by Sinead Cruise; Editing by Christopher Cushing and Sonali Paul)
