Dubai Police arrest hedge fund trader Sanjay Shah over $1.7bn Danish tax fraud case

British financier previously denied charges and said he was working within Danish law

DUBAI, UNITED ARAB EMIRATES. 20 September 2017. CEO of Autism Rocks Mr Sanjay Shah at his offices in DIFC (Photo: Antonie Robertson/The National) Journalist: Suzanne Clocke. Section: Business.
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Dubai Police on Friday arrested hedge fund trader Sanjay Shah in the emirate on an international arrest warrant from authorities in Denmark.

Skat, Denmark's tax authority, alleges that Mr Shah, a British citizen, was a central player in a scheme in which foreign businesses pretended to own shares in Danish companies and claim tax refunds for which they were not eligible.

In January, Mr Shah, 52, denied the charges and said he was operating within Danish law.

Dubai Police said the arrest came after the signing of an agreement in March allowing for extradition between the UAE and Denmark.

Maj Gen Khalil Al Mansouri, assistant commander-in-chief for Criminal Investigation Affairs, said a Dubai Police task force, with the help of information from Danish authorities, gathered evidence and tracked Mr Shah's movements and whereabouts.

Brig Jamal Al Jallaf, director of the General Department of Criminal Investigations, said Mr Shah, along with others, is facing charges of dividend-tax fraud and money laundering.

“The fraud scheme, known as 'cum-ex' trading, involved submitting thousands of applications to the Danish Treasury on behalf of investors and companies from several countries around the world in order to receive dividend tax refunds,” he said.

Brig Al Jallah said Mr Shah will be handed over to Danish authorities after his extradition case has been heard by Dubai Public Prosecution.

Denmark's Justice Minister Mattias Tesfaye said the arrest underlined the importance of the extradition agreement with the UAE.

"The Danish Treasury has been cheated for a staggering amount and of course it should not be possible for suspected perpetrators to hide in the Middle East and thus avoid being held accountable in a Danish courtroom," he said.

"Now I am awaiting the legal process in the UAE and crossing my fingers that it will end up that we can get Sanjay Shah on a plane to Denmark, so he can be prosecuted in this country. "

Updated: June 03, 2022, 2:52 PM
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