In 2009, banker Sanjay Shah founded Solo Capital, a hedge fund based in London with additional offices in Dubai. The firm became involved in the cum-ex trading scheme, which exploited gaps in tax regulations to allow multiple parties to claim rebates on tax that was paid only once. This practice ultimately cost taxpayers across Europe billions. By 2013, these transactions began to involve significant sums, particularly targeting Denmark, with Shah reportedly making hundreds of millions in trades.
Jas Bains joined Solo Capital in 2010 and served as the head lawyer and later led the London office. Initially, he enjoyed the perks of high finance before becoming concerned about the legality of the trades being conducted under Shah’s leadership. In 2015, apprehensive about being implicated, Bains decided to inform Danish authorities about the activities, believing it crucial to disclose potential wrongdoing.
Despite his whistleblower status, Bains found himself named as a defendant in a £1.4 billion lawsuit filed by the Danish tax authority, Skatteforvaltningen, which was seeking restitution for its losses. This lawsuit severely hindered his career prospects, making it nearly impossible for him to find work in law. In late 2021, Shah was extradited to Denmark and sentenced to 12 years for fraud, yet Bains remained under scrutiny.
In October 2023, the lawsuit against Bains and other defendants ended in their favor when a High Court judge dismissed Skat’s claims, noting that the authority had failed to demonstrate it had been deceived. The ruling emphasized the inadequacy of Skat’s controls for processing tax refund claims. Although further appeals from Skat are anticipated, the judgment has provided Bains with a sense of closure and the possibility of moving forward.
Source: https://www.bbc.com/news/articles/c2kp19ed78wo?at_medium=RSS&at_campaign=rss