British Indian hedge fund trader to be extradited to Denmark for tax fraud

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A British man of Indian origin is set to be extradited from Dubai to Denmark for money laundering and committing tax fraud of $1.7 billion.

52-year-old hedge fund trader Sanjay Shah has been accused of being the primary conspirator of a scam which ran for three years since 2012. It has been described as one of the biggest fraud cases in Denmark’s history.

The Dubai police mentioned in a statement that Shah’s fraud scheme included 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, The Meghalayan reports.

In January 2022, Shah had denied the charges against him and asserted that he was operating in accordance with Danish Law.

An international warrant was issued for his arrest on 7 January, 2022, following which the Dubai Police arrested him five months later at the emirate’s Al Raffa district.

This was done after an extradition agreement was signed between the UAE and Denmark in March 2022.

A statement issued by Dubai Media Office on 26 December, 2022 said, “The Dubai Court of Appeal has issued a ruling to extradite Sanjay Shah, a British citizen, to Denmark.

“Danish authorities want the suspect for alleged fraud and money laundering. The ruling follows the hearing of an appeal by the Dubai Attorney General.

“Dubai Police arrested Shah earlier this year following an extradition request from Danish authorities. The arrest and ruling align with Dubai and the UAE’s commitment to combat illegal financial activities, including money laundering, and implement global standards and policies.”

However, Shah cannot be extradited immediately as his lawyer Ali Al Zarooni confirmed that his client will appeal against the ruling made by the Dubai Court of Appeal.

“We are disappointed in the result of the judgment handed down today,” he said. “From our initial reading of the judgment, we believe that the law should be interpreted and applied in a different way.

“We now have 30 days in which to appeal today’s judgment in the Court of Cassation, the highest court in the UAE, and in our appeal we will fully explain our reasoning.

“The decision of the Court of Cassation, which we anticipate in the next two months, will be final.

“Both we and Mr Shah have full confidence in the legal system of the UAE.”

Earlier in September 2022, the Dubai Court of Appeal had refused Denmark’s request for Shah’s extradition due to a lack of original official documentation.