Kaupthing fraud

Posted 08/03/2009 - 18:48 by Sophie

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2009-03-07 (All day)

Kaupthing duo on share fix charges
Two employees of Kaupthing, the failed Icelandic bank under investigation by the authorities, have been charged with manipulating the markets by propping up the price of the bank's biggest shareholder, Exista.

By Rowena Mason
Last Updated: 8:52PM GMT 07 Mar 2009

Former fund manager Daniel Bórdarson and broker Stefnir Agnarsson are accused of creating false demand for bonds in Exista in early 2008, according to papers filed in a Reykjavik court.

Exista, an investment company, counts property tycoon Robert Tchenguiz and the founders of food empire Bakkavör, Lydur and Ágúst Gudmondsson, among its board members. It was linked to Kaupthing by some shared board members and 25pc stake in the bank.

There are already three inquiries into how the country's three biggest banks – Kaupthing, Glitnir and Landsbanki – had to be seized by the government as the nation's entire economic system went into meltdown last October.

The news added to rumours about malpractice in the country's collapsed banking system.

Meanwhile, Hawkpoint, the corporate advisory firm, has been appointed by the Icelandic government to negotiate over proceeds from the asset sales of the collapsed banks.

The banks are believed to owe billions to foreign customers including hundreds of UK institutions and the British Government, which guaranteed the deposits of 300,000 customers of Kaupthing Edge and Landsbanki Icesave accounts.