From Iceland — Former Glitnir Director In Police Custody

Former Glitnir Director In Police Custody

Published December 1, 2011

Lárus Welding, the former director of Glitnir bank, is one of three men currently in police custody, at the bidding of the Office of the Special Prosecutor. A reliable source close to RÚV says that Lárus will remain in custody for at least a week.
The men are in custody in connection with an investigation being conducted by Special Prosecutor Ólafur Þór Hauksson regarding the buying and selling of shares by Glitnir and FL Group shortly before the 2008 financial collapse. Ólafur told reporters that the operation began at about seven this morning and has been the culmination of questioning a number of individuals in recent days.
There are ten cases, nine of them completely new, which focus on Glitnir. In particular, attention is being placed on the bank’s purchase of its own stocks, as well as stocks in FL Group. There are also a series of loans that have aroused suspicion, totalling some 37 billion ISK.
Charges include breaking capital trading laws, violations of stock trading laws, and breaking accounting laws.
Lárus has made no statement to the press at the time of this writing.

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