BBC 12 Dec 13: Former Icelandic bank bosses jailed

Four former bosses from the Icelandic bank Kaupthing have been sentenced to between three and five years in prison.

They are the former chief executive, the chairman of the board, one of the majority owners and the chief executive of the Luxembourg branch.

The four were accused of concealing the fact that a Qatari investor, who had bought 5.1% of the bank during the financial crisis, had done so with money lent by the bank itself.

They were also made to pay their own legal costs for the case which amounts to millions of pounds.

There were four charges and they all relate to the buying of these shares by Sheikh Al Thani from Qatar.

The prosecutors said this deal had influenced the bank's share price. He also said the loans provided for the deal were illegal.

The four sentenced are Hreidar Mar Sigurdsson the former chief executive, Sigurdur Einarsson, former chairman of the board, Olafur Olafsson, one of the majority owners and Magnus Gudmundsson the former chief executive of the Luxembourg branch.


[The special prosecutor] told the BBC that there was still another, bigger case against Kaupthing Bank ongoing, in which it is accused of market manipulation. It is due to come to court at the end of January.


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