04/04/23

UNITED ARAB EMIRATES: Dubai court upholds extradition of British financier accused of £1.4bn tax fraud.

As published on cityam.com, Tuesday 4 April, 2023.

A court in Dubai on Monday rejected the appeal of a British financier fighting extradition to Denmark, where he is accused of orchestrating a 1.7 billion US dollar (£1.4 billion) tax fraud.

Hedge fund trader Sanjay Shah is accused of masterminding a scheme that ran from 2012 to 2015 in which foreign businesses pretended to own shares in Danish companies and claimed tax refunds for which they were not eligible. He was arrested in Dubai, in the United Arab Emirates, last year.

The Dubai media office said the Court of Cassation upheld a ruling late last year that granted Denmark’s request for extradition.

The lower court had said documents implicated him in fraud and money laundering. It was not immediately clear when he would be extradited.

In a separate ruling in September, Shah was ordered to pay 1.25 billion dollars (£1 billion) to Denmark’s tax authority as part of a civil case in Dubai. His lawyers are also appealing against that ruling.

Shah’s lawyers could not immediately be reached for comment. His legal team had expressed disappointment in the earlier ruling that was upheld on Monday.

The 52-year-old financier has maintained his innocence in interviews with journalists but never appeared in Denmark to answer accusations.

His defence has argued in closed-door hearings that Denmark did not follow the procedures laid out in international extradition treaties.

After Danish authorities signed an extradition agreement with the UAE, Dubai police arrested Shah in June. Shah is one of several suspects sought over the tax scheme.

During his time in Dubai, the hedge fund manager ran a centre for autistic children that shut down in 2020 as Denmark sought his extradition.

He also oversaw a British-based charity, Autism Rocks, which raised funds through concerts and performances.