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Iceland Prosecutor Indicts Two Former Landsbanki Bosses on Fraud

Iceland’s special prosecutor indicted two former executives of Landsbanki Islands hf for fraud in signing bank guarantees in violation of the lender’s rules before its collapse in 2008.

Former Chief Executive Officer Sigurjon Arnason and Landsbanki’s former director of corporate accounts, Sigridur Elin Sigfusdottir, were indicted for granting guarantees for two loans totaling 6.8 billion kronur ($59 million) in 2006 to companies registered in Panama, according to the indictment obtained by Bloomberg today, dated January 17.

The former executives are also charged for granting another guarantee to one of the same Panamanian companies a year later, totaling 6.8 billion kronur, without seeking collateral.

Calls to the mobile phones of Arnason and Sigfusdottir seeking a comment weren’t answered.

To contact the reporter on this story: Omar R. Valdimarsson in Reykjavik at valdimarsson@bloomberg.net

To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net

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