REYKJAVIK, July 7 Kaupthing's former chief
executive, chief financial officer and two others have been
indicted by Iceland's special prosecutor for fraud and breach of
trust in the run-up to the 2008 collapse of the bank.
According to the indictment, former CEO Hreidar Sigurdsson
and former CFO Gudny Sveinsdottir have been charged with fraud
related to financial transactions made in 2007. Magnus
Gudmundsson, former managing director of Kaupthing Luxembourg
and Skuli Thorvaldsson, an investor, have also been indicted for
taking part in the alleged crimes.
Iceland's top three banks collapsed under huge debts when
the global credit crunch struck and the country's special
prosecutor has pursued cases against some of the banks' former
employees for their roles in the crisis.
The alleged fraud relates to the transfer of 6 billion
Icelandic crowns ($53 million) from Kaupthing to Marple
Holdings, an entity under Thorvaldsson's ownership, and the
subsequent purchase of bonds by Kaupthing from Marple.
Kaupthing lost a significant amount of money due to the
purchase of the bonds, according to the indictment.
The special prosecutor has requested imprisonment for all
four. A date for the trial has not yet been set.
This is the fourth time Sigurdsson and Gudmundsson have been
charged by the special prosecutor.
They were both convicted late last year for market abuses
related to a large stake taken in the bank by a Qatari sheikh
just before the bank's collapse. The two, now based in
Luxembourg working as financial consultants, have appealed the
($1 = 114.0150 Icelandic Kronas)
(Reporting by Robert Robertsson, writing by Mia Shanley;
Editing by Toby Chopra)