Hedge Fund Trader Found Guilty in Billion-Dollar Tax Fraud

British hedge fund trader Sanjay Shah was found guilty of defrauding Denmark in a billion-dollar 'cum-ex' tax case. He received a 12-year prison sentence, as sought by prosecutors. Shah argued his actions were within legal bounds, claiming a legal loophole justified the trades.

British hedge fund trader Sanjay Shah has been found guilty of defrauding the Danish government in a billion-dollar 'cum-ex' tax fraud case, according to a ruling by a city court in Denmark on Thursday.

The court sentenced Shah to 12 years in prison, the maximum penalty prosecutors had demanded. There is currently no word on whether Shah will appeal the decision.

Prosecutors maintained that Shah, aged 54, orchestrated a complex trading operation that utilized the 'cum-ex' strategy to illegally obtain 9 billion Danish crowns ($1.27 billion) in dividend tax refunds from Denmark's treasury between 2012 and 2015. Shah has denied wrongdoing, asserting in court that he exploited a legal loophole and that his trades were within the legal framework.

(With inputs from agencies.)