Judge Throws Out Fraud Case on Jón Ásgeir - The Reykjavik Grapevine

Judge Throws Out Fraud Case on Jón Ásgeir

Published December 15, 2010

A judge in New York has thrown out a lawsuit filed against Icelandic tycoon Jón Ásgeir Jóhannesson and others by Glitnir. Jón Ásgeir intends to seek damages.
The suit, filed last May in New York State Supreme Court in Manhattan, alleged that the defendants siphoned out money from Glitnir 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 included 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.
The decision of the court was based on the fact that almost all the key players are Icelandic, and it concerns an Icelandic bank; therefore, it should not be tried in the US.
Jón Ásgeir told the business newspaper Viðskiptablaðið that he and the other defendants have been inconvenienced by the lawsuit, and that he will seek damages. While he didn’t specify an amount, he did say that Glitnir has “burned up billions”.
Related articles:
Jón Ásgeir’s Assets Frozen
Glitnir Suing Jón Ásgeir and Others
Media Mogul Tried To Get Journalist Fired For Joking
Businessmen Arrested for Questioning

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