Two Years For Real Estate Fraud

Published November 20, 2012

A well-known Icelandic businessman was sentenced to two years in prison yesterday for real estate fraud.
Aron Karlsson and his father, Karl Steingrímsson, have been major players in Iceland’s real estate market for a number of years. The case in question concerns property they owned on Skúlagata 51.
The property was originally owned by Vindasúlna ehf, Vísir reports, a company Aron and Karl owned. On December 2, 2009, an offer was made to buy the property. Nine days later, ownership of the company was moved to another company, called 2007 ehf. Three days later, the same party who made the initial bid on the property made another offer, to buy it for 575 million ISK. On December 16, the banks which had mortgages on the property, Glitnir and Íslandsbanki, began to process the sale. However, a day later, the property owners then ended up selling the property to the Chinese embassy for 870 million ISK.
The banks believed the activity was suspicious, and reported the matter to the police. Investigations were launched, culminating in the search of three locations on January 9, 2010, among them the offices of Aron and Karl. Evidence showed that the two had engaged in fraud and market manipulation in order to give the false impression of increasing demand for the property.
In addition to the two-year prison sentence, Karl will have to pay both Glitnir and Íslandsbanki a total of 160 million ISK.



News
Ice Cave Construction Underway

Ice Cave Construction Underway

by

A 500 metre long ice cave is currently being tunnelled into Iceland’s Langjökull glacier. So far the crew have dug the cave’s entrance, roughly 200 metres into the glacier and are experimenting with how to light the tunnel. Plans are to turn the cave into a tourist destination where visitors can learn about glacial formations and potentially, even get married. “In the tunnel there’ll be a room,” said Sigurður Skarphéðinsson, CEO of the Ice Cave Iceland project. “We like to call it the multipurpose room and there, in cooperation with others, we’ll be able to offer people the chance to

News
Head To Toe Arsenal Gear, Except At Funerals

Head To Toe Arsenal Gear, Except At Funerals

by

Hardcore Icelandic Arsenal fan, Sigfríð Ingólfsdóttir, only ever wears Arsenal gear or Arsenal themed clothing, reports Vikudagur, except when she has to attend funerals. Sigfríð, 62, began following English football 30 years ago and first started supporting Arsenal after thinking the name of the team was pretty neat. She has since become one of Arsenal’s most dedicated fans in Iceland, has an “Arsenal Room” in her home, and is regularly stopped to discuss games. “I get stopped out on the street, people like to talk to me about Arsenal and football in general,” said Sigfríð. “Some of them are on

News
A Farewell To Arms

A Farewell To Arms

by

The MP5 submachine guns Iceland received from Norway will be sent back, the Icelandic Coast Guard has announced. According to the announcement, posted today on the Coast Guard’s website, the conclusion of talks with the Norwegian army yesterday and today led to the decision to return the guns, which have been held by toll authorities over the past few weeks. Customs officials held onto the guns on account of a dispute over whether the guns were a gift or a purchase. The Icelandic Coast Guard contends that “almost all the weapons in possession of the Icelandic Coast Guard (90%) have

News
Minister Of The Interior Hanna Birna Kristjánsdóttir To Resign

Minister Of The Interior Hanna Birna Kristjánsdóttir To Resign

by

Minister of the Interior, Hanna Birna Kristjánsdóttir, is expected to announce that she is stepping down today and will not return to parliament until the New Year, according to RÚV. Hanna Birna has been under a lot of scrutiny following the leak of incriminating and falsified information about Nigerion asylum seeker Tony Omos. She has maintained her innocence throughout the affair, even after her aide Gísli Freyr Valdórsson admitted to the leak. Despite the Independence party and PM Sigmundur Davíð Gunnlaugsson declaring their support of her, a lot of pressure has been on her to resign, including from the 1,000 people that

News
Pressan Acquires Newspaper DV

Pressan Acquires Newspaper DV

by

Vefpressan, the publishing company behind such websites as Pressan.is, Eyjan.is and Bleikt.is, has acquired 70% of newspaper DV’s stocks. This was announced this Friday morning. Björn Ingi Hrafnsson, once a member of Reykjavík city council on behalf of the Progressive Party, has been titled as DV’s publisher. This comes following turbulence among the owners and board of DV, which saw former editor Reynir Traustason discharged. Hallgrímur Thorsteinsson was hired as editor in his place. Björn Ingi has not revealed his intentions or plans regarding the purchase. Vefpressan’s news release merely explains that the publishing of DV has now been “secured”

News
Increased Use Of Antidepressants

Increased Use Of Antidepressants

by

Anxiety and antidepressants are prescribed 70% more often in Iceland than 10 years ago and Icelanders consume more antidepressants than any other OECD nation, reports RÚV. According to the Directorate of Health, in 2013 39,000 people were prescribed antidepressants and 34,000 people were prescribed sleeping aids at least once. The most commonly used sleeping pill in Iceland is Zopiclone. The Directorate of Health wrote that Zopiclone should not be used for longer than 2-4 weeks but that many Icelanders are getting prescriptions that last much longer than that, in some cases, even years.

Show Me More!