Sigrún Davíðsdóttir's Icelog

Kaupthing: High Court confirms custody

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Tonight, the High Court confirmed the Reykjavik County Court’s custodial sentence of 12 days over ex-CEO of Kaupthing Hreidar Mar Sigurdsson and 7 days over Magnus Gudmundsson ex-manager of Kaupthing Luxembourg and manager of Banque Havilland until last week.

Over the weekend other former employees of Kaupthing have been called in to give evidence. Two other ex-managers, now both living in Luxembourg, are expected to be called to give evidence later this week. The two are most likely belonging to a group of six ex-Kaupthing managers who run a company in Luxembourg, Sigurdsson being one of the six. The company, Consolium, is registered in Iceland but doesn’t seem to be registered in Luxembourg though the Kaupthing ex-managers have been operating out of Luxembourg for about a year.

According to Icelandic media ex-executive chairman of Kaupthing Sigurdur Einarsson has been called by the Office of the Special Prosecutor to give evidence but has been unwilling to come to Iceland for this purpose. Einarsson, who has been living in London since earlier this decade, is said to have been awaiting the results of Sigurdsson and Gudmundsson’s appeal. Special Prosecutor Olafur Hauksson hasn’t confirmed news in Icelandic media that Einarsson has been un-cooperative and that he’s adamant to secure that he won’t follow Sigurdsson and Gudmundsson into custody.

Quite exceptionally, the OSP has asked the High Court, contrary to custom, not to publish its ruling on the Court’s website. Consequently, details about the investigation that would have become public remain unknown to the general public. It’s known though that two judges, Olafur Borkur Thorvaldsson and Hjordis Hakonardottir ruled in favour of confirming the County Court ruling whereas Jon Steinar Gunnlaugsson was against – seen in Iceland as highly indicative of where these judges could possibly stand in later cases related to the banks.

Now that the OSP has conducted the case successfully so far, getting the custody through the two Courts it’s clear that the case has been well prepared so far. Like elsewhere, custody and isolation is seen as grave measures by Icelandic courts. The fact that the custodial sentences have been confirmed indicate the gravity of the charges that will eventually rise from the investigation.

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Written by Sigrún Davídsdóttir

May 10th, 2010 at 10:25 pm

Posted in Iceland

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