Former Kaupthing Director Arrested - UPDATE: Another Kaupthing Director Arrested. - The Reykjavik Grapevine

Former Kaupthing Director Arrested – UPDATE: Another Kaupthing Director Arrested.

Published May 6, 2010

Earlier this afternoon, former Kaupthing director Hreiðar Már Sigurðsson was arrested by the special prosecutor for numerous charges of violating financial laws. This marks the first arrest made in light of findings from the SIC report released last month. UPDATE: A few hours later, former Kaupthing bank manager in Luxembourg and current director of Banque Havilland, Magnús Guðmundsson, was also arrested.
Special prosecutor Ólafur Hauksson told reporters that “the individual” arrested was accused of falsifying accounts, violating shares trading laws, market manipulation and other charges. Sources close to Vísir have confirmed the individual in question is indeed Hreiðar Már.
Hreiðar Már is mentioned several times in the Special Investigative Commission (SIC) report, as he was director of Kaupthing after it was privatized. The organization itself has been accused of unethical business practices, but this marks the first arrest made in light of findings from the SIC report.
Magnús, for his part, was one of Hreiðar Már’s closest assistants. He faces similar charges.
Hreiðar Már could be facing up to 8 years in prison. As the prisons are currently full, both men are at this moment in custody at the police station by Hlemmur. No word yet on any bail set, or any flight bans imposed on either man.
We wish there was more to report on this, but at the moment, you’ll have to keep your thirst for vengence on a low boil and wait for the wheels of justice to grind slowly towards a conclusion. In the meantime, maybe there’ll be more arrests.
Who will be next? Start your office pool now – or have your prediction saved for posterity in the comments section of this article.

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