Four former bosses of collapsed Icelandic bank Kaupthing - including its chief executive and chairman - have been jailed for between three and five years in the heaviest sentences for financial fraud in Iceland's history.
Former CEO Hreidar Mar Sigurdsson received five and a half years while Sigurdur Einarsson, the former chairman of the board, was sentenced to five years. Former majority owner Olafur Olafsson and the chief executive of Kaupthing's Luxembourg branch Magnus Gudmundsson received three years and three and a half years respectively. The former executives were accused of hiding the acquisition by a Qatari investor of a 5.1% stake in the company with money lent by the bank itself. That deal in 2008 was seen as a sign of confidence in the bank and reward for a programme of overseas expansion,...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
