British trader sentenced to 8 years for role in Danish tax fraud scheme
A Danish court has sentenced British hedge fund trader Anthony Mark Patterson to eight years in prison for his involvement in a "cum-ex" tax fraud, according to the prosecution service.
Patterson confessed to participating in about 3,000 trades that defrauded Danish tax authorities of approximately 8.4 billion Danish crowns ($1.22 billion) and attempted fraud of around 500 million crowns.
The court also ordered the confiscation of 100 million crowns from Patterson, the amount he acknowledged earning from the fraud. Patterson's defense is contemplating an appeal against the sentence's duration.
This sentencing precedes the trial of Sanjay Shah, the primary suspect in the "cum-ex" scheme, which cost the Danish state over 12.7 billion crowns. Shah, arrested in Dubai in 2022 and extradited to Denmark, remains in detention, denying all charges.
Prosecutor Marie Tullin expressed satisfaction with the verdict, noting that Patterson would testify in Shah's upcoming trial, which is set to span from March 2023 to June 2025 with over 50 court hearings.
The "cum-ex" schemes exploited tax systems in countries like Denmark, Germany, and Belgium through rapid share trading among banks, investors, and hedge funds, particularly after the 2008 financial crisis.
