Iceland bank fraud suspects found ‘not guilty’

A Reykjavik court has concluded that three people charged by Iceland’s special prosecutor into the banking crash are innocent. The case related to a large loan to Exeter Holdings given under suspicious circumstances in 2008.

Special Prosecutor, Olafur Th. Hauksson told Visir.is he did not want to talk about the Reykjavik District Court verdict in public just yet.

Asked whether he was disappointed that his three suspects appear to have been let off the hook, he replied: “Before one has read the court’s report, it would be dangerous to comment on the matter”. He added that the court’s conclusion is what it is and that he now has to study it closely.

It is now up to the state prosecutor to decide if the verdict should be appealed to the Supreme Court of Iceland or not.

Jon Thorsteinn Jonsson, former Byr savings bank chairman; Ragnar Z. Gudjonsson, former Byr director; and Styrmir Thor Bragason, former MP Bank CEO were all acquitted of any wrongdoing by the Reykjavik District Court today. Byr’s claim for damages was, however, thrown out by the court.

The case centred on a ISK 1.1 billion (EUR 6.62 million) loan which Byr granted Exeter Holding in the second half of 2008. The money was used to buy start-up shares in Byr itself, which were bought at an inflated price from MP Bank and two Byr executives. You can
read earlier news on this case here.

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