Former Kaupthing Managers in Prison - The Reykjavik Grapevine

Former Kaupthing Managers in Prison

Published May 7, 2010

Former Kaupthing manager Hreiðar Már Sigurðsson, along with former Kaupthing bank manager in Luxembourg and current director of Banque Havilland, Magnús Guðmundsson, were both arrested yesterday. Today in Reykjavík District Court, they were both denied release, and will be staying at the prison Litla-Hraun (pictured above). For the time being, they will be in solitary confinement at the prison for twelve and seven days, respectively. After this time, a new decision will be taken on whether or not the men may be free pending a trial.
Both men face charges of of falsifying accounts, violating shares trading laws, market manipulation and other charges. They also featured prominently in the Special Investigative Commission report on the causes of the economic collapse.
Lawyer Sveinn Andri Sveinsson, speaking to Vísir, iterated that the two are not exactly going to be living the high life in Litla-Hraun.
In solitary, they are denied access to letters, to the media, or to talk to anyone apart from their attorneys. “Some men appear ready to confess to anything just to get out of there,” he said. “I have seen hardened criminals break down in this situation.”
Criminologist Hildigunnur Ólafsdóttir believes the arrests will increase public trust in the system. “Probably the most important thing is that this shows that the judicial system has been doing its job,” she told Vísir. “This kind of investigative work usually goes on behind closed doors, but now the public sees that work is being done, and that ought to increase trust.”
No other arrests have yet been made nor announced, but this is certainly a fine way to start the weekend.

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