London banking suspects released on bail

The seven people arrested in London yesterday in the Serious Fraud Office investigation into the collapse of Iceland’s Kaupthing Bank, have all been released on bail.

SFO spokesperson Kate Winstanley told reporters that the Kaupthing case is big and complicated in nature. She confirmed that the arrested parties had all been released on bail after questioning. Over 90 percent of Serious Fraud Office cases end in convictions.

The seven arrested in London yesterday were: three former Kaupthing staff members, Sigurdur Einarsson, Armann Thorvaldsson and Gudni Niels Adalsteinsson; Robert and Vincent Tchenguiz, the property tycoons and biggest Kaupthing debtors; as well as two of their staff.

The SFO conducted searches at eight houses and business premises yesterday and Frettabladid reports that officers even searched photo albums and children’s toy boxes.

Gestur Jonsson, Einarsson’s lawyer, told he knows nothing about his client being released on bail — saying that he has not been banned from travelling and is, to his knowledge, completely free.

The investigation continues and there is not yet any indication of how long it might take.