Kaupthing

What is Deutsche Bank hiding in Iceland?

2017-11-03 (All day)

Deutsche Bank has studiously tried to hide some transactions with Kaupthing in 2008 – and in December 2016 probably thought it had succeeded when it agreed to settle for €425m to Kaupthing and two now bankrupt BVI companies set up in 2008 by Kaupthing. The story behind these deals figured in two Icelandic court cases and one of them, the so-called CLN case, has now taken an unexpected turn: the Supreme Court has ordered the Reykjavík Country Court to scrutinise the transactions as it reopens the CLN case. But what is Deutsche Bank hiding? “It’s not unlikely that an international bank wants to avoid being accused of market manipulation,” said Prosecutor Björn Þorvaldsson in Reykjavík District Court on October 11. ....

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Vincent Tchenguiz and Iceland's Kaupthing settle lawsuit

Posted 04/11/2017 - 10:11 by anrigaut

2017-10-31 (All day)

Vincent Tchenguiz and Kaupthing said on Tuesday they had settled a 2.2 billion pound lawsuit brought by the real estate mogul after a botched Serious Fraud Office investigation into the Icelandic bank’s collapse during the credit crisis.
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Kaupthing said it had agreed to make unspecified payments to the Tchenguiz Family Trust (TFT) as part of the confidential settlement. Tchenguiz said he had withdrawn proceedings against all other co-defendants. .....

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When Kaupthing tried to move its CDS (in 2008) with a little help from a friend

2015-12-08 (All day)

Yet another case from the Office of Special Prosecutor v Kaupthing’s three top managers is up in Reykjavík District Court these days. As in several other cases, the charges centre on breach of fiduciary duty, ultimately causing the bank a loss of €510m. The loans went to two companies owned by Kaupthing clients that used the funds to buy credit linked notes and enter into credit default swaps related to Kaupthing in order to lower the bank’s collateral debt swap spread. Does this sound like market manipulation? Deutsche Bank seems to think it might, strongly denying any involvement in the scheme except as the issuer of the notes though Icelandic sources tell a different story.* – But who made a killing on the other side of the CDS bet? Partly Deutsche Bank, according to the OSP but this part of the CLN saga is still not entirely clear, which is one of the reasons why the court hearings might be interesting.
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Now, the CDS saga is summed up in the OSP charges (in Icelandic) against Einarsson, Kaupthing’s CEO Hreiðar Már Sigurðsson and head of the bank’s Luxembourg operations Magnús Guðmundsson in a case of breach of fiduciary duty and causing a loss of €510m to Kaupthing, some of it paid out on Kaupthing’s last day of trading.
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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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Judge Will Not Be Forced To Leave Trial Over “Lack Of Impartiality” Accusations

Posted 07/10/2015 - 12:30 by anrigaut

2015-10-06 23

Reykjavík District Court has dismissed a request that a judge in the so-called Marple Case recuse himself for allegedly lacking impartiality on the matter.

Kjarninn reports that Hörður Felix Harðarson, the lawyer for former Kaupþing director Hreiðar Már Sigurðsson, filed a motion with the Reykjavík District Court that one of the judges in the case, Ásgeir Brynjar Torfason, recuse himself from the trial. The motion was filed on the grounds that Felix believes Ásgeir cannot exercise impartiality in the case.

The allegations are based on Ásgeir’s involvement with Gagnsæi, an anti-corruption group, as well as for his posts and “Likes” on social media with news stories related to the case.

Vísir reports, however, that this motion has been denied by the court. Hreiðar could appeal the matter to the Supreme Court after the District Court passes its verdict, which is expected this Friday.
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Kaupthing files an exemption request from capital controls

2015-09-08 23

An exemption application from certain restrictions under the Act on Foreign Exchange (No. 87/1992) was submitted by Kaupthing to the Central Bank of Iceland on Friday, 4 September 2015. The exemption is required in order to make distributions to creditors domiciled outside of Iceland and in order to fulfil the terms of an approved composition agreement. The exemption application is based on a proposal submitted by representatives of certain of the larger creditors of Kaupthing (the “Kaupthing Creditors Proposal”) outlined in the announcement by the Ministry of Finance and Economic Affairs ("Iceland in Continuing Consultations Regarding - Capital Control Liberalization (Kaupthing)") on 8 June 2015. Kaupthing will provide creditors with an update on the progress of the application in due course.

Note: The Ministry of Finance announcement is here: http://www.ministryoffinance.is/news/nr/19597

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More Kaupthing Executives jailed

2015-06-25 23

Six defendants in the Kaupþing market manipulation case, the biggest case of this type in Iceland’s history, have been handed prison sentences ranging from one year to four years and six months.

By fully financing share purchases with no other surety than the shares themselves, the bank was accused of giving a false and misleading impression of demand for Kaupþingi shares by means of deception and pretence.
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See also here: http://icelandreview.com/news/2015/06/26/more-kaupthing-execs-jailed
and here: http://uti.is/2015/06/yet-another-fraud-investigation-ending-in-prison-s...

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Kaupthing Bankers on Trial, Again

2015-04-20 23

The Reykjavík District Court began hearing oral testimony on Monday in the largest case relating to the events leading up to the crash of 2008. Nine former managers of Kaupthing bank are on trial for market manipulation in the 11 months leading up to the bank’s collapse, along with the rest of the Icelandic financial system in the fall of 2008. Over fifty witnesses are scheduled to appear before the judge, a process expected to take seventeen days, followed by five days of oral arguments.
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Epic Kaupþing abuse trial be­gins

Posted 21/04/2015 - 09:43 by anrigaut

2015-04-20 23

To­day sees the start of the main court pro­ceed­ings in the Kaupþing mar­ket ma­nip­u­la­tion case, the biggest case of this type in Ice­land’s his­tory. The trial is ex­pected to take up to 22 days to com­plete.
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Another similar report here: http://icelandmag.com/article/kaupthing-bank-trial-might-be-one-largest-...

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Iceland convicts bad bankers and says other nations can act

Posted 13/02/2015 - 10:21 by anrigaut

2015-02-13 (All day)

Iceland's Supreme Court has upheld convictions of market manipulation for four former executives of the failed Kaupthing bank in a landmark case that the country's special prosecutor said showed it was possible to crack down on fraudulent bankers.

Hreidar Mar Sigurdsson, Kaupthing's former chief executive, former chairman Sigurdur Einarsson, former CEO of Kaupthing Luxembourg Magnus Gudmundsson, and Olafur Olafsson, the bank's second largest shareholder at the time, were all sentenced on Thursday to between four and five and a half years.

The verdict is the heaviest for financial fraud in Iceland's history, local media said. Kaupthing collapsed under heavy debts after the 2008 financial crisis and the four former executives now live abroad. Though they sometimes returned to Iceland to collaborate with the court investigation, none were present on Thursday.

Iceland's government appointed a special prosecutor to investigate its bankers after the world's financial systems were rocked by the discovery of huge debts and widespread poor corporate governance. He said Thursday's ruling was a signal to countries slow to pursue similar cases that no individual was too big to be prosecuted.

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