A Danish prosecutor has called for a 12-year prison sentence for British hedge fund trader Sanjay Shah, accusing him of defrauding Denmark of more than DKK9bn ($1.35bn) through dividend tax refund schemes, according to a report by Reuters.

Shah, 54, founder of Solo Capital, which closed in 2016, is alleged to be the mastermind behind the fraudulent schemes, known as “cum-ex” trading, which reportedly exploited Denmark’s tax system between 2012 and 2015. These schemes allowed individuals to falsely claim dividend tax refunds from the Danish treasury. Shah, however, denies the charges.

Prosecutors argue that Shah took advantage of tax loopholes that emerged in the aftermath of the 2008 financial crisis to secure the refunds. In addition to the prison term, the prosecutor has also called for the seizure of Shah's assets, valued at DKK7.2bn ($1.08bn).

The trial, which began in March, has garnered significant attention from global tax authorities, with a verdict expected in December.

Shah was arrested in Dubai in 2022 and extradited to Denmark last December, where he remains in custody.