Another former Icelandic banker sent to jail

Viggó Þórir Þórisson, the former director of the Icelandic savings banks’ joint securities fund (Verðbréfasjóður Sparisjóðanna) has been sentenced to two years in prison for attempted fraud. He was, however, cleared of a charge of large scale fraud.

He created false statements and records concerning guarantees on a bond issue by a company called Napir on the stock exchange in Guernsey, RÚV reports.

He deliberately made it appear that Napir had USD 680 million (ISK 85 billion) to its name and on that basis the company was able to issue bonds. Viggó Þórir owned a 25 percent stake in Napir.

In court Viggó variously gave either no explanation for evidence shown by the prosecution, or his explanations were deemed incongruous with his previous testimony.

The judge said in conclusion that the sentence had to reflect the obvious deliberate nature of the defendant’s crime and the relatively high sums of money involved. It is also considered likely that his actions were one of the major causes for the savings banks’ securities fund having to close down.

His attempt at fraud was considered weak and unconvincing, however; because it targeted institutional investors and banks.

It is now five years since the case against Viggó first came to light and he has been banned from leaving Iceland for longer than most other people involved in cases.

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