Iceland Magazine 9 Oct 15: Kaupþing bosses found guilty of massive embezzlement of bank funds

Hreiðar Már Sigurðsson, the former CEO of failed Icelandic bank Kaupþing, Magnús Guðmundsson the former CEO of Kaupþing Luxembourg and investor Skúli Þorvaldsson were found guilty earlier today by the Reykjavík District Court for embezzlement and cover-up.

Guilty of embezzlement and cover-up
The local news site visir.is reports that Hreiðar Már and Magnús were found guilty of having fraudulently transferred 6 billion ISK (48.2 million USD/42.4 million EUR) to Marple Holdings, a company owned by Skúli, and for having purchased Kaupþing bonds from the same company at above market value. The District Court ruled that through these transactions Hreiðar Már and  Magnús embezzled nearly 8 billion ISK (63 million USD/56 million EUR) from Kaupþing by transferring them to Marple holdings. Skúli was sentenced for having covered up the crime as the listed owner of Marple holdings. At previous stages of the case he had denied any knowledge of the company.

Hreiðar was sentenced to six months in prison, Magnús to 18 months and Skúli to six months. The three were also sentenced to pay the estate of Kaupþing damages. The fourth defendant, Guðný Arna Sveinsdóttir, the former CFO of Kaupþing, who had been charged with participation in the embezzlement was acquitted by the District Court.

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