Dubai/Copenhagen (Reuters) – The United Arab Emirates has extradited British hedge fund trader Sanjay Shah to Denmark, where he is accused of submitting fraudulent applications for 1.44 billion pounds ($1.8 billion) in dividend tax refunds, his spokesperson said on Wednesday.
Shah was arrested by Dubai police last year following a request by Danish authorities to extradite him over his alleged involvement in so-called “cum-ex” tax fraud schemes. He denies wrongdoing.
Shah’s media and political adviser confirmed his extradition to Denmark. His defence lawyer in Denmark, Kare Pihlmann, told Danish broadcaster TV2 that Shah had boarded a plane in Dubai and was set to arrive in Denmark later on Wednesday.
“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,” state-run UAE news agency WAM reported.
Danish prosecutors will ask a court to order that Shah is held in police custody until the start of his trial, which is scheduled to begin on Jan. 8 next year, the government said in a statement.
“This is one of our biggest and most serious cases of financial fraud,” Justice Minister Petter Hummelgaard said.
The 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 ($1.8 billion).
“Although the decision to extradite Mr Shah is extremely disappointing, Mr Shah has at all times maintained his honest belief that the trades undertaken, which are the subject of this case, were lawful,” said Chris Waters, partner at London-based law firm Meaby & Co, which is coordinating Shah’s defence.
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.
