Revenue Rule Defense in Doubt as Panel Hears Cum-Ex Case Appeal

Denmark’s tax authority likely isn’t barred from suing a group of US investors already found liable for helping a hedge fund trader steal from the country’s treasury in a $2.1 billion fraud scheme, a panel of Second Circuit judges indicated Wednesday.

Richard Markowitz, John van Merkensteijn, and their pension and retirement plans were ordered by a New York federal district court last year to pay back the $476 million they got from Skatteforvaltningen, the Customs and Tax Administration of the Kingdom of Denmark, as part of the scheme.

On appeal, the men argue that the tax authority, also known as ...