Former Reykjavik Councilperson Found Guilty Of Money Laundering

Júlíus Vífill Ingvarsson, a former Reykjavík City Councilperson for the Independence Party, has been found guilty of money laundering in Reykjavík District Court today, RÚV reports.

He received a sentence of ten months in prison, but this will be a probationary sentence for the next two years. He was not present for sentencing.

Júlíus denied guilt last September, telling the court that he believed he was the target of a political attack, accusing the head of the investigation of being a member of the Left-Green Party. However, he admitted that he had not paid taxes on tens of millions of krónur that he had spirited off to an overseas bank account.

Legal proceedings against him began last year, in the wake of the massive Panama Papers leak the year previous.

As documents in the leak revealed, Júlíus established the company Silwood Foundation in Panama in 2014. This company was intended to take care of his account at the bank Julius Bär in Switzerland. In the email communications uncovered in the leak, special emphasis is placed on making sure Júlíus’ part in the company is kept as hidden as possible.

Furthermore, members of Júlíus’ family have accused him of cheating them out of their share of an inheritance from his parents. This windfall he kept hidden from tax authorities, and he kept his financial dealings a secret from the city, despite a legal obligation to report all vested interests.