Sanjay Shah, a British national, was detained in Dubai on suspicion of tax fraud worth £1.3 billion ($1.7 billion).
Officers working with Interpol say they intend to extradite the suspect, Sanjay Shah, 52, who is wanted in Denmark on suspicion of fraud.
Sanjay Shah created both Solo Capital, a hedge fund that dissolved in 2016, and Autism Rocks, a charity that raises autism awareness.
In Dubai, a British man was arrested in connection with a?1.3 billion tax fraud case.
Shah was detained after Denmark struck an agreement in March allowing alleged criminals to be extradited to and from the UAE.
According to a statement from Dubai police Brigadier General Jamal Al Jallaf, he is suspected of defrauding international corporations by pretending to acquire shares in Danish companies and then claiming tax rebates for which they were not qualified.
'The 'cum-ex' trading fraud scheme entailed sending thousands of applications to the Danish Treasury on behalf of investors and firms from all over the world in order to get dividend tax refunds,' according to the report. According to Al Jallaf.
Shah had been pursued by Danish authorities since 2015, when the Danish treasury was defrauded of a'staggering amount of money,' according to Justice Minister Mattias Tesfaye.
'Suspected criminals should not be able to hide in the Middle East and thereby escape being held accountable in a Danish trial,' says the report. Tesfaye continued.
'Right now, I'm waiting for the legal procedure in the United Arab Emirates to conclude, and crossing my fingers that we'll be able to get Sanjay Shah on an aircraft to Denmark and prosecute him there.'
Shah, who has lived in Dubai for the past few years, claims he is innocent of the allegations.