The case of the Special Prosecutor’s Office against Lýður Guðmundsson, former chairman of investment company Exista, was filed in Reykjavík District Court on Thursday. Attorney Bjarnfreður Ólafsson is also facing charges; both defendants maintain their innocence.

Reykjavík District Court.

Lýður is accused of having only paid Exista ISK 1 billion (USD 8 million, EUR 6.3 million) for ISK 50 billion (USD 407 million, EUR 314 million) in share capitalization in December 2008. The ISK 1 billion is said to have come from Lýsing, which was owned by Exista, in the form of a loan, Fréttablaðið reports.

Lýður and Bjarnfreður are both accused for having given misleading information, indicating that the increase in share capitalization had been fully paid.

Lýður stated the charge, issued last month, had come as a surprise. “The main aspect of the charge is that deception was used. I absolutely deny such claims—the affair was clear from the start as stated in official documents, including announcements to the Stock Exchange, reports to the Financial Surveillance Authority, etc.”

Lýður would not comment on the case any further, pointing out that it will be heard in court. His attorney, Gestur Jónsson, requested eight weeks to work on a statement in this case and his request was granted.

Click here to read more stories connected with Lýður and here to read more about Exista.

ESA