Seven Sentenced In Kaupthing Market Manipulation Case

Reykjavík District Court handed out prison sentences yesterday to several former Kaupthing bankers for engaging in market manipulation.

Kjarninn reports that Former CEO Hreiðar Már Sigurðsson, former chairman of the board Sigurður Einarsson, former director of Kaupthing in Iceland Ingólfur Helgason, former Kaupthing trading manager Einar Pálmi Sigmundsson, former employees of Kaupthing’s trade division Birnir Sær Björnsson and Pétur Freyr Guðmarsson and former managing director of loans Bjarki Diego were all found guilty of market manipulation in Reykjavík District Court yesterday. They stood accused of having artificially inflated the value of Kaupthing stocks in 2007 and 2008.

Sentencing was varied. Hreiðar Már, who was already sentenced to five years earlier this year by the Supreme Court, was found guilty but not given a sentence. Sigurður saw his four-year sentence extended to five. Ingólfur was given four and a half years, and Bjarki was given two and a half years. Everyone else received probationary sentences.

As reported, investigations of the accused – amongst many others – began after the financial crash of late 2008. Evidence uncovered an extensive scheme to artificially inflate the value of Kaupthing stock by having the owners buy large blocks of it, amongst other methods.

More information uncovered led to more charges filed, leading to the trial which concluded yesterday.

The accused have not yet announced if they plan to appeal.