Sigurjon Th. Arnason, former director of Landsbanki, received two loans from his private pension fund kept by the bank. The loans were a so-called bullet loan, meaning interest payment is only due once, at the end of the loan period after 20 years. The interest rate was 3.5 percent. One loan was for ISK 40 million and the other for ISK 30 million – 70 million altogether.
The lawyer Sigurdur G. Gudjonsson, who prepared the loan deed in question, said in an interview with a journalist yesterday that the pension fund Arnason took the loan from was his own private money and that there was therefore nothing illegal about taking money out of it. The lawyer also states that the loans were well-collateralised against Arnason’s properties.
Hrafn Magnusson, head of Iceland’s pension industry association, said that pension funds cannot be considered private property before retirement. According to a 1997 law, money held in pension funds is protected by law and cannot be used by individuals – even voluntary extra pensions savings.
Arnason is accused of taking the loans with 20 years interest-free as a means of avoiding paying some ISK 14 million in tax on the pension savings over the period. Iceland’s financial regulator the FME announced today that it is investigating the loans.
Total fraud.
In any other country, that guy would already be helping the police with their enquiries. But his lawyer says that, in Iceland, it’s legal for bank directors to loan themselves pensions from the bank they run! Eva Joly must be banging her head against a wall.
Perfect example, laws do not apply to bankers and politicians. They make their own good old boy’s club rules. The country must unmask these criminals and hold them accountable!!!
This is illegal in many ways
http://www.visir.is/assets/pdf/XZ670613.PDF
the house used as guarantee is owned by his wife,
not Sigurjón, somehow this went trough any way.
Talking of Eva Joly, I like the way this guy’s lawyer comes out and attacks her for not being a Jol(l)y good fellow.
It’s almost as if the lawyer feels his clients might benefit if Eva did walk away from the investigation. I wonder which particular clients he has in mind? :D
http://www.economicdisasterarea.com/index.php/features/corrupt-crooks-and-liars/
it is not to believe what individuals in this leading positions have done and now comes the clever lawyer to say, it was correct. What needs it more to prosecute them and bringing them behind bars?
I would say that she is wise enough to let other do this. So far it was that exact lawyer who started bang his head. At least he was among few who was “brave” to attack Eva Joly publicly accusing her in damaging “image of Icelandic businessmen”.
O’by the way, if the law does not exist or apply the lawyers will create or invent it overnight! What ever happend to judges, O they are law makers also. So who is going to hold the bankers or politicians accountable? No one!!!
no one else can match with Italy on doing those pitiful deeds….trust me and avoid it! ;)
If he’s found guilty, regular prisoners are going to get medieval with his ass.
“If he’s found guilty, regular prisoners are going to get medieval with his ass.”
people would brake into the prison to get a piece of that,
but unfortunately he is not going to prison, there is a double justice system and double economy here,
what is illegal and impossible for you is ok for members of the elite.
Wow!! That’s is a great scam. Too bad the Icelandic people are going to pay for it and there is nothing they can do about it but whimper. That was a smashing progressive scamming. That’s only one. Where are the rest of the scammers? I bet they all got away. Go pay for all of it Icelandic people. Take it all from your behind and complain like there is no tomorrow. The scammers will just laugh because the damage is done, they already stashed the money and there is nothing you can all do but complain with no results.
The financial situation in Iceland is like the sexual one on Pitcairn Islands: http://en.wikipedia.org/wiki/Pitcairn_sexual_assault_trial_of_2004
Isolation and abuse – but the local people have nothing to do with it because all those are relatives, very nice persons, etc.