British hedge fund trader stands trial in Copenhagen over $1.8 billion fraud

British hedge fund trader Sanjay Shah faces trial in Copenhagen for allegedly defrauding Denmark of $1.8 billion in a 'cum-ex' dividend tax scheme.

Prosecutors seek to seize Shah's assets, totalling 7.2 billion Danish crowns, and he could face up to 12 years in prison. Shah, who was extradited from Dubai to Denmark, claims innocence, arguing the complexity of Danish tax law led to misunderstandings.

Denmark has indicted nine individuals in the scam, and although recovery of lost funds is uncertain, the state is also pursuing a separate civil case to recover losses.

The trial aims to serve as a deterrent, and more than 50 hearings are scheduled until June 2025. Shah's alleged accomplice, Anthony Mark Patterson, has already been convicted.