Iceland Magazine

2 billion dollar personal bankruptcy of former Kaupþing boss is the largest in Iceland’s history

Posted 08/01/2016 - 19:27 by anrigaut

2016-01-07 (All day)

The liquidation of the estate of Sigurður Einarsson, the former chairman of the board of failed bank Kaupþing, has been completed the local news site visir.is reports. Creditors, which included Deutsche Bank and the Icelandic bank, Arion, which was created on the ruins of failed bank Kaupþing. Total claims on the estate exceeded 250 billion ISK, which comes to nearly 2 billion USD.

Only a small fraction of the claims were fulfilled, as Sigurður’s estate was found to be worth only 38.3 million ISK (290,000 USD/270,000 EUR), an amount which pales in comparison to the 254.4 billion ISK claims (1.96 billion USD/1.8 billion EUR). The trustee of the estate described it as worthless in an interview with the local newspaper DV. “As there were no assets in the estate we did not assess the validity of the claims made on the estate. These are simply claims that the creditors believe they have on Sigurður.”

Sigurður declared personal bankruptcy in September of 2015. ......

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District court of Reykjavík sentences former Glitnir bank CEO to five years in prison

Posted 22/12/2015 - 10:06 by anrigaut

2015-12-21 (All day)

Earlier today the District Court of Reykjavík sentenced Lárus Welding, the former CEO of failed bank Glitnir, to five years in prison, the Icelandic National Broadcasting Service reports. Jóhannes Baldursson, the former manager of capital markets at Glitnir, received a two year sentence while Þorvaldur Lúðvík Sigurjónsson, former CEO of investment bank Saga Capital received an eighteen month sentence. ...

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26 bankers already sentenced to a combined 74 years in prison

Posted 15/10/2015 - 12:41 by anrigaut

2015-10-13 23

In two separate rulings last week, the Supreme Court of Iceland and the Reykjavík District Court sentenced three top managers of Landsbankinn and two top managers of Kaupþing, along with one prominent investor, to prison for crimes committed in the lead-up to the financial collapse of 2008. With these rulings the number of bankers and financiers who have been sentenced to prison for crimes relating to the financial collapse has reached 26, and a combined prison time of 74 years.

Former managers of Kaupþing top the list.
Eleven former bankers have been sentenced to four and a half years or more in prison. .....

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Kaupþing bosses found guilty of massive embezzlement of bank funds

2015-10-08 23

Hreiðar Már Sigurðsson, the former CEO of failed Icelandic bank Kaupþing, Magnús Guðmundsson the former CEO of Kaupþing Luxembourg and investor Skúli Þorvaldsson were found guilty earlier today by the Reykjavík District Court for embezzlement and cover-up.

Guilty of embezzlement and cover-up
The local news site visir.is reports that Hreiðar Már and Magnús were found guilty of having fraudulently transferred 6 billion ISK (48.2 million USD/42.4 million EUR) to Marple Holdings, a company owned by Skúli, and for having purchased Kaupþing bonds from the same company at above market value. The District Court ruled that through these transactions Hreiðar Már and Magnús embezzled nearly 8 billion ISK (63 million USD/56 million EUR) from Kaupþing by transferring them to Marple holdings. Skúli was sentenced for having covered up the crime as the listed owner of Marple holdings. At previous stages of the case he had denied any knowledge of the company.

Hreiðar was sentenced to six months in prison, Magnús to 18 months and Skúli to six months. The three were also sentenced to pay the estate of Kaupþing damages. The fourth defendant, Guðný Arna Sveinsdóttir, the former CFO of Kaupþing, who had been charged with participation in the embezzlement was acquitted by the District Court.
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