From Iceland — Glitnir Investigations: Icelandic Tycoons Could Face Prison

Glitnir Investigations: Icelandic Tycoons Could Face Prison

Published November 17, 2010

Yesterday’s morning raid of numerous Icelandic businessmen could reach the most powerful men in the country. The special prosecutor told reporters that market manipulation and fraud was at work.
As reported yesterday, suspects have been arrested by order of special prosecutor Ólafur Hauksson in connection with the bank Glitnir (now Íslandsbanki). Ten in all are now in questioning. The offices of tycoon Jón Ásgeir Jóhanneson at 101 Hótel, the offices of Pálmi Haraldsson (formerly head of the company Fons, which at one point owned 25% of what was then Jón Ásgeir’s 365 media company) and the home of Lárus Welding, the former chairman of Glitnir, were among those raided.
Speaking to reporters, the special prosecutor said that market manipulation and fraud on a large scale were at play with Glitnir. He said that while ten people in all are being questioned, the decision of whether or not to jail any of them has not yet been taken, but will be when questioning is concluded.
Although the offices of Jón Ásgeir at 101 Hótel were among the locations raided, Jón Ásgeir himself said that neither he nor his wife Ingibjörg Pálmadóttir have yet been called in for questioning. As he is currently being sued by Glitnir for allegedly trying to raid their coffers as the banks were collapsing, it is expected that he will probably face questioning.
The charges against the accused include breaking investment law, violation of stocks trading law, violation of investment company law, and breaking accounting law. A statement from the special prosecutor emphasizes that the matter connects to numerous people who broke the law on many occasions.

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