Manhattan Jury Backs Denmark in $2.1 Billion Tax Fraud Case

A Manhattan jury has ruled in favor of Denmark's tax authority, SKAT, in a civil trial aiming to recover $2.1 billion lost to alleged tax fraud through 'cum-ex' trades. British trader Sanjay Shah was convicted as the scheme's orchestrator, involving pension plans and stock trading manipulation.

A federal jury in Manhattan has delivered a verdict favoring Denmark's tax authority, SKAT, in a significant civil trial concerning efforts to reclaim approximately $2.1 billion in allegedly fraudulent tax refunds.

This case is rooted in the contentious 'cum-ex' trading strategy, with British hedge fund trader Sanjay Shah pinpointed as the main perpetrator. He was sentenced to 12 years by a Danish court for orchestrating this intricate fraud.

Prosecutors argue that between 2012 and 2015, pension plans engaged in sham transactions aimed at extracting tax refunds on dividends they falsely claimed to have paid. The jury reached its decision after two days of deliberations following a trial that commenced on January 7.

(With inputs from agencies.)