How An Unemployed Trader Became a $700 Million Exile
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- เผยแพร่เมื่อ 8 พ.ย. 2021
- Sanjay Shah used an obscure loophole to go from unemployed trader to $700 million whale in just a few years. Now regulators are after him for what they consider the biggest tax heist in European history.
Read more about this notorious tax heist in Bloomberg Businessweek: www.bloomberg.com/news/articl...
#Storylines #Trading #BloombergQuicktake
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Read more about Sanjay Shah's tax heist in Bloomberg Businessweek: www.bloomberg.com/news/articles/2020-10-06/the-unemployed-trader-who-became-a-700-million-cum-ex-exile
this is blatant stealing than other complex schemes in banking.
Lies again? Ultimate Team
I'm new to crypto investment
Any specific guide?
Would it be so difficult for Donal Griffin to wash his hair before filming the video?
Deutsche Bank has their hand in every controversy lol
The dirtiest bank in the world
They should rename themselves as douchebank
I worked for them
@@annajones9701 and what do you think about them?
😂😂
He is just a small player, big banks have been doing that for ages. Its necessary to put these banks accountable.
DING DING DING DING DING DING DING DING DING DING!!!!!!!!!!!!!!!!!
Still doesn't mean he should be ignored.
What makes this guy different though to the institutions is that he consciously and deliberately set out to commit tax fraud, his personal company and fund was setup exclusively to do that. That's not say what he did is any less criminal or serious than what the big banks and financial institutions did, he just did it more openly and aggressively. So he needs to be brought to justice and made an example of to deter others from doing it. As far as law enforcement and the financial regulators go, he is also a soft easier target to go after compared to the big financial institutions which are more opaque and more difficult to bring to justice with their vast legal resources, they can drag legal cases out for years or just settle out of court with fixed fines.. this guy however is likely to be looking at jail time and losing everything the authorities can seize. When you commit tax fraud like he has, the States defrauded will seize all your assets and the penalty is nearly always prison time.
Imagine the excuse "I am being targeted for fraud, which I committed, and it is unfair because I learned how to commit fraud from others who got away with it."
Not an acceptable excuse, but true nonetheless. This is still happening.
It's the greed, that bit him back in the arse.... expensive houses... yachts...etc...
Well, he might see it as being getting caught for being brown skinned compared to white skinned traders who got away with it - which might be at least 1% true
He is a POC and he is the only likely to get prosecuted. I can bet government knew about it but slept on it for years but all of sudden they wake up
@@testahom4690 or he literally stole billions in fraud schemes, is this really a race issue for you? Why don't we throw everyone who brags of stealing billions in jail regardless of their skin color
i remember Sanjay bringing his Ferrari to my window tinting store in Dubai around 10 years ago. Very friendly guy. I asked him if he was actually going use the car as most owners just park it in a garage - he said it was his main car and he's actually going to drive it and use it. He came by again 6 months later with another car, saying the Ferrari was too much of a headache to maintain. 😆
sounds like a regular guy.
Cool! It must be strange seeing your former customer now at the centre of a tax major fraud scam!!!
"too much of a headache to maintain" meaning "my assets have been frozen"
@@riderpikachu7403 lol
mad lad. isn't even trying to hide it.
Yeah that's right I think the best way is to invest with a professional, at least it saves the trauma of too much losses
Desperate scammers in here. Please don't call or WhatsApp them..
@Arabella Aldert their fake
He literally said the second he's cleared (if he is) he'll keep doing it. He's insane.
Unlike Nancy Peolosi
These aren’t trades, it’s just plain old tax fraud. I can’t believe he and actual banks did this. Worse, I can’t believe the regulators missed it!
I can.
Regulators were in cahoos with them. But the sheep can't believe government would be corrupt, that's far beyond your comprehension.
@@teemuvesala9575 You can say that again. Everyone eats and all of a sudden they opened their eyes when an Indian guy came along. Quite strange.
@@muchit3629 cant agree more, everything is fine until someone whos different colour join the same game. then suddenly its not okay
@@johntitor414 Yep. Remember the young trader who lost multiple billions and was British or Ghanaian background and was made a poster lying too. Banks run daily, weekly monthly reconciliations but as long as he made profits nothing was amiss. When the trades went against him and lost the bank billions he became a rogue trader and they emphasized his African heritage. Its a bunch of idiots always looking for scapegoats for all the scams they perpetrate on the masses.
Reminds me of my father. He was quite the trader back in the day (2006) and the trades he'd make would ensure we'd have food on the table. He could trade a reverse holo gloom for a holo lugia and sell it back to you for 10 rares. There's a reason he was banned from the playground.
Underrated comment.
So what's he doing now?
@@tom-xs5pm he does not need to work...he has enough money to spend for next 1000 years for food on table..
The clsssic holo arbitrage.
BB will want to contact your father xD
So 55 billion of these trades were done but we found one person with 700m? If the whole industry was doing it, how did you only find one person? Aka fall guy?
It said they're looking into around 1000 people pay attention. Sorry but your boy is a crook
That's not a complex trading strategy...that's just blatant fraud.
yeah not sure why there is a controversy here, send him to jail, seize all gains
He is right though ...he's being scapegoated because he's seen as insignificant ....if we had to really dig into this, how much money do you think the bigger banks such as Goldman sachs, Deutsche Bank, UBS and others have made off of this strategy. The only reason prosecutors won't mention them in being complicit in such activities is because they have too much influence and power to be targeted. So they target a smaller fish instead.
they will settle for few % of profits at most
Yeah . . . .and then they'll head back to the drawing board and figure out a way to continue doing it by exploiting a grey area within the law ...just like they did before. Bankers are sharks, it's disturbing and impressive to see how they manage to exploit systems like this.
Exactly the speaker to the parliament said 50 billion euros are stolen every year. Sanjay stole like 2-3 billion euros for several years, that's a bucket in the 50 billion euro a year fraud.
The more money you earn, the more hostile you will be
@@MumbiYamba The banks pay off the politicians to allow their lobbyists to write the laws that create the loopholes.
i created my wealth through credit repair, after getting my score fixed then i got a big loan and started business, i am proud to be a millionaire
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Of course, nothing about punishing the bankers who perpetrated the fall and collapse of the economy.
This wasn't about that
Ofcourse nothing will happen to them. White collar crimes are hardly ever prosecuted. This guy's brown so they probably thought, lets prosecute one of the only POCs
Doesn't sound like an obscure loophole to me, sounds just like plain old fraud.
Claiming tax deductions that aren't yours and acting like you're trading on behalf of some school that's never heard of you.
Sounds pretty classically fraudulent.
I'm not sure it's so simple, they were borrowing the shares I believe. No different to short selling where one would borrow shares.
@@joshradcliffe8563 Bloomberg did quite a poor job explaining the scheme
Oh it’s exactly that simple. It’s claiming a double tax refund, which is illegal. Cloaking it in borrowed shares doesn’t matter. Two people can’t claim the same refund. Try it yourself with your return and see what happens!
@@CJBroonie Wrong
@@jonathanmarvens Respectfully, I’m absolutely right.
So being unemployed is the true Path Of Exile...
bruh the only way you can play path of Exile is if ure unemployed
@@babute21 why do you have to insult poe players like that?
lol
Sometimes you need to take a step back to see the bigger picture.
Still sane exile?
Politicians here in Germany knew about this for quite some time and have waited for many years before they started to do something about it. One politician warned some bankers about investigations, so that they could flee the country. Another politician did not bother to reclaim ~47 million euro in time and led the deadline expire. Funfact that last guy is our next chancellor...
das tut schon weh, wenn man ein eifacher arbeiter ist.
Olaf Scholz??
Every scam needs a scapegoat...I present to you Mr. Shah
👌
🙂 i agree with ya
He still did what he did. Still deserves it.
its always a brown guy
There's no scapegoats when it comes to criminal activity and tax fraud, only criminals. And he is a criminal. End of story. He's going to prison if he sets foot in the UK or any EU country or the US or if those States defrauded manage to extradite him from Dubai, which is possible.
Not sure it should be called a "loophole', sounds like a scam perpetrated on a massive scale. The 'Maybe I did it but that's because everyone else was doing it,' not so great, Sanjay.
you should learn more about why its considered a loophole prior to this witch hunt.
@@uripierre-noel6852 well said.
A "loophole" is a short for legal loophole. A scam is when something is illegal. A loophole is in the realms of grey area and is not illegal.
@@davidk7441 Who cares about the specifics, everyone who took part in this crime should go straight to jail. Deep down they know it was wrong. The banks should also be shut down. There needs to be some accountability!
@@puffinjuice Again, it's only a crime if it's illegal under the law. If it isn't illegal, then it's a loophole. You can only go to jail if you commited a crime.
Love this series. Please keep making em'
We need more insightful report like this
Love this style of journalism. Keep it up!
I love these series.
This is a great story. Well done, Bloomberg.
Claiming a tax refund for taxes one didn’t pay is not a trading strategy, it’s fraud. This guy should spend may years behind bars.
He finessed them and they mad asf 😂😂😂😂
"Traders have no Emotion"
You simply can't trade with emotions
Insightful video. I just want to know best how people split their pay, how much of it goes into savings, spendings or investments. I'm 27, and earn nothing less $150k per year, but nothing to show for it yet.
When people have money, they spend it. And some people spend more money when they have more of it. If you want to improve your financial management, you should consult with a financial advisor.
@@sherryie2 That's right, you can avoid the traps of lifestyle inflation by consulting an expert advisor to help you plan for your short- and long-term goals; it all comes down to proper guidance. Over the past two years and six months, I have seen my income build wealth and now have a fully paid off house and at least $650,000 in stocks. All this is the result of subsequent investments with my savings and the application of expert advice.
@@kurttSchuster Nice, who is the Financial Advisor aiding you if this is not much i'm asking? my retirement plans are going down the drain with my 401k particularly losing everything it gained ever since 2021.
@@Mcllwain Sure. NICOLE DESIREE SIMON, a well-known person in her field, is my advisor. I got to know her through my wife. It's my wife that has her number, but you could further investigate her credentials and contact her yourself.
@@kurttSchuster Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
"trading strategy" rofl... Hilarious how breaking the law is framed for finance
But you know.. he is a trader, he was paid for this
Government officials and regulators who overlooked the situation or allowed these deals to exist should also be investigated and tried using the same benchmark. Robbing a country ( its citizens... you , me...) should be either legal for everyone or no one.
I don't think it's that simple and I don't think the regulators and tax authorities had any idea how this scam worked and they certainly weren't complicit or involved in it. It's quite a complex tax fraud scam which relies on exploitation of a tax system loop-hole in the financial services industry. I'm just surprised the tax authorities didn't realise it was wide open to being exploited and so look more closely at those repeated applications to delay tax on transactions from certain companies and financial institutions to determine their legitimacy.
Intelligence, luck and government systems can yield wild results.
don't forget the lack of a moral compass is needed as well
@@FlyMc17 The government and institutions like hedge funds are already scamming you big time, you'd have to be very naive to not try to scam them back. But that's why your kind are called sheep. You're willingly exploited by your corrupt government and attempt to play fair while the elites never play fair. Why should anyone play fair in a rigged game?
calling a scammer a trader is disgusting.
a criminal scammer
This guy needs an award.
*he should have kept a few million in cash and gold bars and hide it somewhere off the books incase he gets busted, now he lost eveything* hahahaha...
He obviously can't say he has done this very thing.
@@surfside75 We should take his word that his only income is an allowance.
I have little doubt he has.
he definitely did this man aint your average tech support scammer.
financial institutions are completely broken, this is insane
The issue is not the institutions, it’s that our world is so complex that no single human knows what is going on in the big picture involving every little step so when you discover a loop hole involving multiple systems, chances are, you can get away with it for quite a while.
@@Arcaryon you’re literally proving my point 🙄
@@subtletherapy 50/50 . The institutions still work afterall. Just not always as intended
you're only learning this now? Learn about what actually happened in the 2008 financial crash
This is a marquee case where sound and effective financial regulation and oversight was lacking. Allowing dubious financiers and bankers to go unregulated is akin to releasing tigers out of the cage and will proceed to devour everything in its path.
I think those charged are individuals who are taking advantage of the loophole but are part of the lobbying team that greases the wheels of the system.
I feel like the complexity of the tax system is at fault here, it shhould not be possible to steal tax money so easily for year without it being noticed
Every documantory which shows a comman man earn huge money, you will notice every investigator pointing and focusing only one cime "how a comman man becomes so rich in short time" the rich community won't allow you to earn such money if you are not from them legally or illegally
Sometimes that kind of intuition, instinct, influence, and impact happens yeah
1 dividend but claiming dividend tax for 100s+. It's blatant tax fraud & all should be jailed
I love what Bloomberg does, give Finance Organisation the tools to trade and then do stories about what they did...
It’s the regulations that give the system to trade not Bloomberg.
@@deekircher21 Have u never heard of a bloomberg terminal? Do u know whats done on these things? TRADING of SECURITIES, we dont even know or understand. Regulations create the "rules" bloomberg gives the tools and then the media company gets content....
$700 million and he bought himself a 32 ft yacht!
Wow the luxury!!!
And then he traded it in for a 62 ft yacht!!
What a megalomaniac! Who did he want to impress?
In Dubai with a gigantic 62 ft yacht! 😂😂😂😂😂
parking next to our hockey gargage recycling guy who just bought a used 330 million dollar boat, five times longer. but only ONE heli pad you really NEED two.
Keep posting such a great contetnt
Headline: “Rich People Face Justice, Whining and Complaining Ensues”
The real problem is overly complex and unnecessary taxation. If there is no tax then there can be no reimbursement claim to be made.
If this guys made 700 million out of this just imagine how big the whole cake is
$63 billion according to Wikipedia…
Dear Europeans, as an Indian I can confidently say that Gujaratis are too brilliant in money related matters and adept in using loopholes, if needed, to make huge sums of money. Always keep that in mind.
you're an EAST Indian. Indians are in North America.
For an update to the story, Sanjay Shah has been extradited to Denmark as of December 2023
A powerful story and very interesting...
To do this is shocking, to have no remorse is sickening.
The story decided not to mention (1) the case was dismissed in the English High Court in April 2021 and (2) the Danish government has so far paid out USD 500 million in legal fees and got no result. So let’s talk about the real scandal here…
Are you Sanjay shah ...??🤨
@@pointofview5596 Yes
Things have changed though, haven't they?
Extradited to Denmark now, no?
Trading is impossible to win if you don't have inside connections.
man said when he'ss cleared of this he is going back in. What a menace
All thanks to Mr Raul that got my credit score to 820 from 550 within 3 weeks. now i can get whatever i want to. you can get yours done also.
for those that would like to reach raul should
visit hackbyworld on google
ortxt+1
4074944256
What a gem
Smart guy, freaking smart guy
The best trades are the ones with no risk. 😆
Only if the regulators put this much effort into actually investigating and auditing the banks and financial institutions
They probably do but get paid off to keep quiet or disappear
Exactly. The financial regulator in the UK is extremely layed back when it come to enforcing the law and weeding out crimimals and fraudsters from the financial markets. I know this from first hand experience being involved in a multi-million pound fraud case in UK which eventually meant I had to bring in the serious crime unit of the Met and Trading Standard's Markets Division in London because the FCA the market regulator were absolutely useless. They stood by and did nothing even when I gave them all the evidence they needed to prosecute two Russian individuals and revoke their company's UK e-money license. The FCA is a toothless organisation which only reacts after the fact. It doesn't regulate or enforce its own rules and the law, let alone any market oversight or monitoring of companies with high levels of customer complaints.
After £2.8 million disappeared from clients who were coming to me for legal assistance, and we were looking at potentially up to £57 million of unhedged liabilities/fraud by this one crypto company, the FCA still allowed them to retain their license and continue operating in the UK...although severely restricted, unable to take on new customers or do any trading in the UK markets, so clearly they knew what was going on. The FCA will do anything to avoid public scandals or negative press concerning London's financial markets, for fear of panic and undermining confidence in the markets. Even if it means allowing more people to fall victim to scammer companies and criminals to get away with white collar crime, if it protects London's financal markets reputation.
@@paullangton-rogers2390 sure, especially now as the UK is more a standalone market post Brexit keeping up appearances will be the top priority
Well played Traders 👏
i don't understand why they keep calling it a 'trading strategy'?
so it sounds legal, when banks and other big financial whales do this
"The arc of the moral universe is long, but it bends towards justice."
For many wealth people, morality doesn't matter legality does. And if you can make the illegal legal even better.
Beyond doubt someone said,
"Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it." 😄
i heard it from qullamaggie
No sympathy for thieving fraudsters..
He's not guilty because everyone else does it 🤦♂️
Make sure those "everyone else" also gets punished.
It's peculiar that whenever the perpetrator is foreign (non-western), it's when the regulator and the public prosecutor wake up. Nevertheless, you know the drill: *Capitalism for the mere mortal, Socialism for the rich and affluent*
he stole their shares!
this guy is british
Ironically he would have moved to Dubai to avoid taxes, he remains due to lack of extradition treaties.
@@lm_b5080 Maybe the powers that be do not perceive him as the typical British. How is it this went on for decades and all of a sudden this guy is the poster child.
@@muchit3629 from a wealthy posh family, father a doctor, he's typically modern-day elite british
Ok let me tell you if you don't get it, basically if you have a 20% cash of the valuation of whatever company you plan to trade you can rig and influence the price of that company stock...
THe governments should close the loop holes in the tax codes but too many rich people who buy politicians have used those verysame tax loopholes.
2008 my life changed, was finishing high school ready for university and suddenly my dad couldn’t pay school fees, stayed home for 3 years after that before getting admission…
thanks
He got too corky and he should have gotten out while he was ahead
he could have also not stolen taxpayer money :P
You need to keep it going to hide your previous fraud(s). It is a one way path. You can’t turn around.
Pivot sideways
07:24 was his undoing..
LEGEND
Stop waiting for anybody..Be a Monster ✈️
Smart man 👍
If it is loophole. Does not mean it is illegal. Why is it there in the 1st place
Because he said when he gets acquitted, he will be back to pursuing these trades? Man I doubt they'd let you out then. Hahaha
since when did using the loopholes become illegal?!
He didn't actually break the law of that time frame, rt? Apparently, he quickly accumulated a ton of wealth, and the powers that be said -- "this isn't OK ... especially for the average bloke." Pls correct me as applicable
YOU ARE CORRECT
The ultimate finesser
Who declares shares being held at the same time by two or more entities? The bank does
More the number of taxes more the loopholes. Keep it less and simple
Yeah so since people will Dodge taxes why charge them at all?
@@clydecmcelroy4638 No ideal solution can be found out due to human psychology, so its best to keep the environment simple so that the natural tendency is to not discover loopholes
@@vedantdesai2313 true, but taxes are a byproduct of life and life is a huge mess. It's really hard to find something that applies to everyone in every circumstance in a fair way.
@@reijin90 True and that is my point. Make taxes in the simplest possible way and let nature run as that will give the optimal results in the long run. As can be seen by experiments like these such as democracy and capitalism
Most inefficient way money is used is done by the government. Yes taxes are necessary and part of life but things can be a lot simpler
As others have said, if this man has to go to jail for what he did then the entire monetary system must collapse, because it is as or more criminal than this man.
All criminals should face justice. Regardless of their influence and significance.
@@Arcaryon if all criminals were prosecuted half of the world would be in jail. Many things are illegal but they still exist and are thriving.
What was the name of the trade?
It's like the carbon credit scam on VAT
BLOOMSBERG quicktakes is Prime. Love the content 👌
Go for it Sanjay
Why blame traders for finding opportunities like this and exploiting them. This is a mixup in the tax code plain and simple.
He should meet up with Jan Marsalek from Wirecard and start a fund. 😂
Deutsche & Danske Bank are more than happy launder the money, that's what someone said on reddit*
The fact that other players commited fraud does not justify his actions.
Being rich cannot buy this guy out of his shabby elegance. Oh, nor his legal issues.
He is no longer rich. In fact, he will never make a single cent in his life in western society if our persecution works it right. Which it should or the people will riot.
Hack, I am a super authoritarian guy, high trust & complicit in police, secret service, law, certain social hierarchy aso. and EVEN I would riot.
How inept are governments to allow the to go on for decades if it's such a crime?? Politicians are absolutely worthless. We need to get rid of em all and start over.
I love it ❤️
Sanjay is a Real G, a Hero !!!
Go put the crooked politicians in jail.
RAUL I AM SO GRATEFUL, MY SCORE JUST MOVED TO 820 FROM 450 WITHIN 3 WEEKS
IFN YOU WANT TO REACH RAUL
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if you are earning and taxes are not unfairly high than i think its the right and responsibility of the person making money to give the tax
legend
Sunjay you forgot to pay the "tax" to the people who don't pay taxes ;)
wonder why the tax is high in Denmark xD
Nice.
Thank you raul for fixing my score to 820 from 680 within few weeks
if you want to reach raul kindly
txt+1
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4256
Sanjay apparently is a product of a system of impunity in the Banking industry. He has no morals, no conscience, and a sense of impunity.
Unfortunately in our modern society where people are lied to daily in the media, who really can blame Sanjay? Sure he is a bad character, but as he says, he is not guilty because he is simply playing the game by the established rules he has been taught though he played it more creatively than most.
I blame Sanjay. He isn't the only one who should go down for it, but how can you not blame him? He wasn't naïve about what he was doing. He knew 100% that he was lying to the government in order to receive tax-relief of taxes he never paid. Just because he didn't invent it and the firms he worked at taught him about it doesn't excuse him from blatant fraudulant activity. He needs to rot along with the rest who left a trail big enough to prosecute on.
Sanjay should be charged, but yes, the bigger issue is not him, rather the system.