Special Prosecutor Charges Entrepreneur Brothers


Special Prosecutor Charges Entrepreneur Brothers

court_gavel_familycourtservicesIcelandic Special Prosecutor Ólafur Þór Hauksson published yesterday an indictment against six persons because of ISK billions that were paid from the investment company Milestone to Ingunn Wernersdóttir in 2006 to 2007 on suspicion of breach of trust.

Among the accused are Ingunn’s brothers Karl and Steingrímur Wernersson, who held the majority of shares in Milestone at the time and were on the company’s board, Karl as chairman, Fréttablaðið reports.

Guðmundur Ólason, former CEO of Milestone, is also facing charges, along with three accountants at KPMG. However, Ingunn is not among those indicted.

The indictment was issued on Friday and the court case will be filed in September.

The special prosecutor has concluded that Karl, Steingrímur and Guðmundur jointly made the decision of paying Ingunn ISK 4.8 billion (USD 38 million, EUR 30 million) in 2006 to 2007 for her shares in Milestone.

The six persons facing charges are among other issues suspected of having violated the 262nd article of the penal code on breaching the law on bookkeeping and financial statements to conceal embezzlement. The violation can lead to up to six years in prison.

The case began almost four years ago when employees of the Special Prosecutor’s Office raided the headquarters of Milestone, KPMG, insurance company Sjóvá and other facilities as part of the office’s investigation into these companies’ affairs.

Other cases are also connected with the investigation, including suspicion of racketeering with Sjóvá’s insurance fund.


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