UK Bans Trader for €91 Million of ‘Sham’ Tax Refunds
- Teraiya accused of playing key role in dividend trading ruse
- Trader has appealed the decision to the FCA’s upper tribunal
The FCA headquarters in London.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
The UK financial watchdog banned a trader from operating in the industry and fined him £6 million ($7.6 million) for his alleged role in a Cum-Ex tax trading scheme that obtained tens of millions of dollars of sham refunds from the Danish exchequer.
Nailesh Teraiya, who owned and ran a small London-based brokerage called Indigo Global Partners Ltd., is alleged to have played a key role in what the Financial Conduct Authority described as a “sham trading scheme” that received €91.2 million ($99.4 million) in tax refunds from the Danish tax authority. Teraiya received millions of dollars in fees for his role, some of which was used to buy a £3 million house in Dubai, the FCA said.