The board of anti-piracy group Smáís wants to declare bankruptcy, brought on by the former director having allegedly embezzled funds out of the company.
RÚV reports that Smáís has recently filed bankruptcy papers with Reykjavík District Court. According to their filing, the main reason cited is that the former director of Smáís, Snæbjörn Steingrímsson, had been funneling money out of the company while at the same time falsifying the company’s financial reports.
The embezzlement and false accounting allegedly went on for years, giving the board an inaccurate impression of the actual financial state of Smáís. Furthermore, taxes had not been filed since 2007. Hallgrímur Kristinsson, the chairperson of the board, told reporters that the financial state of Smáís is such that they can no longer operate.
Charges against Snæbjörn have been filed with the Special Prosecutor. He would not comment on the bankruptcy case nor the charges against him.
Smáís was formed in 1992 with the express purpose of protecting copyright holders, specifically by fighting piracy. Snæbjörn was an outspoken opponent of piracy, which he likened to theft.