British trader found guilty of £1.4bn fraud

Danish prosecutor Marie Tullin told the BBC that the maximum sentence given to Shah reflected, “the extraordinarily big amount, the time it had gone on, and his role in it managing it all, over several years committing this fraud against the Danish state.”

“It is by far the largest [fraud] in terms of amount,” she added. “I think also the sentence speaks for itself, in that it is a crime haven’t seen in this magnitude before.”

Before his arrest, Shah had been living in Dubai, where he was reportedly known for throwing lavish parties and had hosted concerts for his autism charity, with performances by major celebrities.

He was arrested in 2022 and extradited from the United Arab Emirates to Denmark in December last year.

According to Reuters, so-called cum-ex trading schemes have flourished since the 2008 financial crisis, with Germany, Belgium, and Denmark among the European countries most affected.

The schemes typically involve the rapid sale of large volumes of shares from one investor to another immediately before the payment of a dividend, enabling duplicated claims of the withholding tax.

Previously the Danish government has said cum-ex schemes have cost it more than $1.8bn (12.7bn DKK). Shah was one of nine British and US nationals accused of defrauding the state.

Shah also faces a parallel civil tax fraud case in London, filed by the Danish tax authority, that is due to conclude in April.

As he exited the court escorted by police officers, wearing his Santa Claus hat once more, Shah shot a smile towards reporters, and said, “See you next year.”