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Former Savings Bank Manager Arrested

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Former Savings Bank Manager Arrested

Siglufjörður

From Siglufjörður, North Iceland. Photo: Páll Stefánsson.

Two men were arrested in Siglufjörður, North Iceland, yesterday, suspected of embezzlement at AFL savings bank, Vísir reports. AFL merged with Arion Bank in 2015, which now has a branch in Siglufjörður. One of the men arrested is a former savings bank manager.

In September of last year, two other men were arrested on suspicion of embezzlement. One of them was a former employee of the savings bank, but the other the president of the local government of Fjallabyggð, of which Siglufjörður is part. The latter resigned from his post shortly after the case was covered by the media.

After the merger of AFL and Arion Bank, a review of the savings bank’s books kindled suspicion of embezzlement. Yesterday’s arrests are related to investigations of events that took place before the merger.

“We arrested two individuals in connection with the case,” District Prosecutor Ólafur Þór Hauksson remarked, “and questioned them. In addition, we made house searches at five locations in town. This case is connected to an embezzlement case that came up in September of 2015 at the same place, and which has expanded.”

Vísir reports that the funds involved total hundreds of millions of Icelandic krónur. The case has long been under the investigation of the district prosecutor, who has traced the trail of funds, domestically as well as abroad.

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