The alleged embezzlement of tens or hundreds of millions of Icelandic kronur by a staff member at Old Kaupthing Bank is under police investigation. The woman accused of misappropriating the funds was sacked when the issue first came to light.
The missing funds were only exposed when Old Kaupthing collapsed just over a year ago and New Kaupthing (now called Arion) took over. The woman accused of embezzling the funds had worked for the bank for many years in asset management, where she dealt in securities for a select and tight-knit group of bank customers, mainly in bonds and exchanges. There would have been no companies represented in the group, RUV reports.
Johannes Runar Johannsson, from the Old Kaupthing resolution committee, says the trades were based on so called service contracts and that the woman would have dealt with very large sums of money on a daily basis.
The case has been known to few people until now – just being investigated by those high up in both the old and new banks. The case was then referred to the Financial Crimes department of the Icelandic police force in the summer and the investigation is still said to be “far from completion”. The accused woman was sacked from her post as soon as the irregularities were noticed.
The overall amount she is accused of skimming off could amount to half a billion kronur (just over USD 4 million).