Sigrún Davíðsdóttir's Icelog

Two ex-Kaupthing managers arrested

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Ingolfur Helgason ex-manager of Kaupthing Iceland and Steingrimur Karason former head of the bank’s risk management were both arrested when they arrived in Iceland late last night. This is part of an ongoing investigation into Kaupthing by the Office of the Special Prosecutor in Iceland. The investigation accelerated last week when two other Kaupthing insiders, ex-CEO Hreidar Mar Sigurdsson and ex-manager at Kaupthing Luxembourg Magnus Gudmundsson were arrested. A custodial sentence over them was confirmed last night by the Icelandic High Court.

It’s now become abundantly clear that the OSP has a major case going against the Kaupthing management. Helgason and Karason were brought briefly in for questioning early this morning before they were sent to prison. It’s still not clear whether the OSP intends will request a custody for the two though judging from the procedure so far it’s more than likely. Helgason and Karason were, as Sigurdsson and Gudmundsson, both living in Luxembourg where they run a company called Consolium together with Sigurdsson. The company is said to be a financial consultancy, i.a. giving advice to bondholders in the collapsed Icelandic banks. The three moved to Luxembourg last year.

Now there is only one left on free foot from the five Kaupthing managers who are very much seen to have been in charge of the bank, ex-executive chairman of Kaupthing’s board Sigurdur Einarsson. According to Icelandic media Einarsson, who lives in London, has resisted requests to come in for questioning because he would have liked to make sure that he will not be imprisoned as well. According to unconfirmed sources Einarsson has offered to be questioned in London. It seems that the OPS isn’t up for any negotiations. If Einarsson does not agree to travel the OPS will no doubt seek assistance from UK authorities to take action against Einarsson and have him handed over to the OPS. That process might already be on track.

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Written by Sigrún Davídsdóttir

May 11th, 2010 at 1:08 pm

Posted in Iceland

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