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More Kaupþing Execs Jailed

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More Kaupþing Execs Jailed

Former chair of Kaupþing Sigurður Einarsson.

Sigurður Einarsson. Photo: Geir Ólafsson.

Sigurður Einarsson, former chairman of Kaupþing Bank, has today been sentenced to one year in prison in the so-called 'big market manipulation case' at the Reykjavík district Court. Hreiðar Már Sigurðsson was also found guilty, but was not sentenced on top of the existing prison term he is already serving following the Al-Thani case.

According to RÚV, Sigurður’s sentence will be in addition to the four year sentence he is already serving following the Al-Thani case.

Ingólfur Helgason, former president of Kaupþing Iceland, was sentenced to four-and-a-half years’ prison time.

Magnús Guðmundsson, former manager of Kaupþing Luxembourg, was acquitted and two other charges against him were dropped.

Bjarki Diego, former manager of the Kaupþing corporate division, was sentenced to two-and-a-half years in jail.

Björk Þórarinsdóttir, who sat on the Kaupþing loans committee, was acquitted.

Einar Pálmi Sigmundsson, former head of in-house trade at Kaupþing, was handed down a two-year suspended sentence.

Pétur Kristinn Guðmarsson and Birnir Snær Björnsson, former employees in Einar’s department, were both given an 18 month suspended sentence.

The court case began in late April and the hearings were the most wide-ranging and complex in Icelandic legal history. Over 50 witnesses were called, and testimony lasted for many weeks. They were quizzed on the nine defendants’ suspected illegal trade in their own bank’s shares in the lead up to its collapse. Charges laid by the Special Prosecutor claimed that the widespread illegal trade was carefully choreographed and highly deceptive.

The defendants’ lawyers cost over ISK 250 million (EUR 1.7 million/USD 1.9 million). The State must pay nearly ISK 100 million, with the defendants covering the rest of the bill.

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