Denmark’s tax authority can sue a group of US investors who helped a hedge fund trader steal from the Scandinavian country’s treasury in a $2.1 billion fraud scheme, the Second Circuit ruled Monday.
The three-judge panel rejected the investors’ argument that the Danish tax authority was barred from suing them in the US, citing a common law revenue rule that prohibits a sovereign entity from enforcing its tax claims in the courts of another sovereign entity.
The decision affirms a Manhattan-based federal court order requiring defendants Richard Markowitz, John van Merkensteijn, and their pension and retirement plans to pay back …