Former Kaupthing Manager To Repay Loan To Self - The Reykjavik Grapevine

Former Kaupthing Manager To Repay Loan To Self

Published May 17, 2012

Former Kaupthing manager and Interpol fugitive Sigurður Einarsson will have to repay 10% of a loan he paid himself from the company he used to run, a court has ruled.
Many Grapevine readers may remember Sigurður when he was on the lam from Interpol, and later arrested in London, charged with fraud and market manipulation. He has since returned to Iceland and the Interpol warrant against him was dropped.
DV now reports that Reykjavík District Court has ruled that he repay 10% of a loan he paid himself from Kaupthing while the company’s director.
The loan – totaling 5.5 billion ISK – was used to buy stocks in his own company. The condition set for the loan was that he was to repay 10% of it. However, with the economic collapse of 2008, the board of directors at the time issued a directive exempting Kaupthing employees from having to repay loans taken from the company – himself included.
The new directorship of Kaupthing reversed the decision and the court has ruled in their favour, thereby obliging Sigurður to pay Kaupthing 550 million ISK.

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