Hedge-Fund Trader Shah Now Faces Cum-Ex Charges in Germany
17 Mar 2021

Sanjay Shah, the founder of hedge-fund Solo Capital Partners LLP, was charged in Germany with money laundering over trades linked to the Cum-Ex tax scandal.

Shah and six others were indicted by Hamburg prosecutors, Liddy Oechtering, a spokeswoman for the authority, said on Monday. Shah is charged with 55 counts of money laundering, she said.

The indictment is linked to a 9.6 billion-krone ($1.5 billion) tax probe in Denmark, where Shah already faces criminal charges. Tax officials in that country describe Shah as the “mastermind” of a fraud tied to the controversial Cum-Ex strategy where traders took advantage of legal loopholes to obtain duplicate dividend tax rebates.

“The case is about laundering profits from tax fraud” in Denmark and Belgium “by filing tax-refund claims with untrue statements about dividend-arbitrage trades and, in part, distorted misrepresentation of the crucial points,” Oechtering said.

A spokesman for Shah said the charges were “expected,” but “we question the merit as the German court is not competent to decide on Danish tax matters.” He said Shah is in Dubai and hasn’t been arrested as part of any investigation.

By Karin Matussek and Ellen Milligan, Bloomberg, 15 March 2021

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