A Danish court has sentenced Briton Sanjay Shah, founder of hedge fund Solo Capital Partners, to 12 years in prison for orchestrating a $1.3bn fraud scheme, marking one of the harshest sentences for tax fraud in the country’s history, according to a report by Reuters.
Shah, 54, was found guilty of defrauding Denmark’s treasury through a ‘cum-ex’ trading scheme between 2012 and 2015.
The Copenhagen court ruled that Shah masterminded the fraudulent operation, which secured DKR9bn ($1.27bn) in dividend tax refunds. Prosecutors alleged that his London-based hedge fund manipulated share transactions to create an illusion of multiple owners, each falsely eligible for tax refunds on dividends.
Despite prosecutors seeking the maximum sentence, Shah, who wore a red Christmas hat during court proceedings, denied wrongdoing. He claimed he exploited a legal loophole and has appealed the verdict to the Danish High Court.
In a TV interview with Danish broadcaster TV2 ahead of the sentencing, Shah admitted to being “a greedy bastard” and likened his scheme to “playing Space Invaders,” where he sought to surpass his previous successes. He acknowledged that the strategy was so lucrative he rewarded himself with a Ferrari and a £19m bonus on his 40th birthday.
Shah’s trading activities have drawn international scrutiny. He is also facing a £1.44bn ($1.83bn) civil tax fraud case in London, with a verdict expected in April.
The case has become a high-profile example of the cum-ex scandal, which has drained billions from public treasuries across Europe since the 2008 financial crisis.
Shah was apprehended in Dubai in 2022 and extradited to Denmark the following year.
