From Iceland — Glitnir Suing Jón Ásgeir and Others

Glitnir Suing Jón Ásgeir and Others

Published May 12, 2010

Reuters reports that the committee managing what remains of the bank Glitnir have filed a lawsuit against Jón Ásgeir Jóhannesson and several others in an effort to recover some 2 billion USD missing from the coffers.
The suit, filed in New York State Supreme Court in Manhattan, says that the defendants siphoned out the money with “a sweeping conspiracy”, financed with funds the bank raised in 2007 selling 1 billion USD of medium-term notes to investors in New York and elsewhere in the United States. The money gained from the scheme was then used to “fill their pockets and prop up their own failing companies.”
Apart from Jón Ásgeir, the defendants also include his wife, Ingibjörg Stefanía Pálmadóttir; investor Pálmi Haraldsson; former Chairman Thorsteinn Jónsson; former Chief Executive Lárus Welding; and former directors Jón Sigurðsson and Hannes Smárason.
It’s been a pretty rough week for Jón Ásgeir – just yesterday he had his assets frozen, as he’s being investigated for tax fraud.

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