Financial Supervisory Authority to Submit Findings to Special Prosecutor - The Reykjavik Grapevine

Financial Supervisory Authority to Submit Findings to Special Prosecutor

Published October 20, 2010

The Financial Supervisory Authority of Iceland (FME) has submitted findings to the Special Prosecutor regarding market manipulation conducted by former Landsbanki officials.
There is strong evidence indicating, Vísir reports, that former Landsbanki officials purposefully engaged in illegal market manipulation. The charges include touting false information about the status of the bank, and giving an inflated outlook on stocks owned by the bank managers themselves.
FME believes that these practices continued over a period of at least five years. If found guilty, the businessmen responsible could face up to six years in prison.
FME has previously focused efforts on Kaupthing, finding that these former managers engaged in much the same market manipulation now being associated with Landsbanki. Their findings led to former Kaupthing manager Sigurður Einarsson hiding out in the UK while a warrant for his arrest was issued by Interpol.
Gunnar Andersen, the director of FME, did not want to comment on the matter beyond saying that he expects more and larger cases to be sent to the special prosecutor soon.

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