Sanjay Shah, an Indian-origin Hedge Fund trader, has been convicted of money laundering and tax fraud and has been ordered by the Dubai Court of Cassation to pay Skat, Denmark’s tax authority $1.25 billion or 4.6 billion dirhams. 

This comes after the Dubai court rejected a final appeal by Shah against a civil lawsuit and issued a binding ruling this month as part of a civil case that was filed by Skat five years ago in August 2018. He also has to pay an additional 5% interest on the total sum to the Danish authorities, accrued from the date the case was lodged.

In April this year, the Court of Cassation ruled that Shah would be extradited to Denmark for prosecution over the tax fraud allegations.

OGH Legal was representing the Danish tax agency and has said that the process of how this money will be paid back to Skat, has already been initiated. The Dubai firm also appreciated “the serious and uncompromising stance of the UAE authorities against financial misconduct.”

Following Denmark’s extradition request, Dubai Police detained the 52-year-old in June of last year. According to them, Shah’s fraud plan entailed sending hundreds of applications to the Danish Treasury on behalf of investors and businesses from all over the world seeking dividend tax refunds involving 126 bogus firms.