Former Exista Chair Sentenced to Eight Months

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Former Exista Chair Sentenced to Eight Months

Supreme Court of Iceland

The Supreme Court of Iceland. Photo: Páll Kjartansson.

Lýður Guðmundsson, former chair of investment company Exista, was yesterday sentenced to eight months in prison by Iceland’s Supreme Court. Five months of the sentence are suspended, ruv.is reports. 

Bjarnfreður Ólafsson, lawyer and former Kaupþing board member, was sentenced to six months in prison, three of which are suspended for a period of two years. Bjarnfreður is also barred from acting as a district attorney for a period of one year, visir.is reports. 

Lýður and Bjarnfreður will also have to pay millions of ISK in legal costs.

The case of the Special Prosecutor’s Office against Lýður and Bjarnfreður opened in the Reykjavík District Court in October 2012. Lýður was found to have only paid Exista ISK 1 billion (USD 8.8 million, EUR 6.4 million) for ISK 50 billion in share capitalization in December 2008. The ISK 1 billion is said to have come from Lýsing, which was owned by Exista, in the form of a loan. According to the charge, Lýður and Bjarnfreður were found to have provided misleading information, indicating that the increase in share capitalization had been fully paid.

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