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Former Landsbanki CEO Gets 3.5 Years in Prison

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Former Landsbanki CEO Gets 3.5 Years in Prison

Landsbankinn

Photo: Páll Stefánsson.

Yesterday, the Supreme Court of Iceland sentenced Sigurjón Þ. Árnason, former director of Landsbanki, to three and a half years in prison, RÚV reports. Elín Sigfúsdóttir, former director of the bank’s corporate department, received an 18-month prison sentence in connection with the so-called Imon Case.

The Supreme Court thereby overturned the ruling of the Reykjavík District Court which had found both defendants not guilty.

Yesterday’s ruling is detailed. It takes into account the amount of money involved in the breach of trust, that is, ISK 5.1 billion (USD 40.66 million, EUR 35.83 million). All that money was lost. The court says this was a serious breach of faith which led to a massive loss of money.

The ruling notes these were offenses against the public and the Icelandic financial market and that the damage cannot be assessed. Still, the court points out that neither Sigurjón nor Elín committed the offenses for their personal gain or that of people connected to them.

The case involved three directors who were accused of breach of trust by lending the company Imon, LTD more than ISK 5 billion (USD 39.91 million, EUR 35.12 million) to purchase stock in Landsbanki just before emergency laws were passed.

Steinþór Gunnarsson, former chair of stock trading had been convicted in district court and received a nine-month sentence, including six months suspended. The Supreme Court changed that sentence to nine months in prison.

Yesterday’s ruling means that directors of two out of three of the large Icelandic commercial banks have now received heavy sentences.

February 12, this year, Hreiðar Már Sigurðsson, director of Kaupþing Bank, og Sigurður Einarsson, chairman of Kauþing’s board of directors, were sentenced to five and a half and four years in prison respectively in the so-called Al Thani Case.

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