Case Dropped against Banker Accused of Insider Trading Skip to content

Case Dropped against Banker Accused of Insider Trading

court_gavel_familycourtservicesThe Special Prosecutor and State Prosecutor of Iceland have dropped their charges of insider trading against Erlendur Magnússon, who served as managing director at Glitnir Bank before the banking collapse in 2008.

Erlendur told Morgunblaðið earlier this month that he was pleased with the conclusion, which he said proved that reopening the case against him had been wrong.

Erlendur was accused of having used insider information when the holding company Fjársjóður, owned by him and his wife, sold shares in Glitnir for ISK 10 million (USD 84,000, EUR 61,000) at market price in the spring of 2008.

The case had been under investigation for two years and eight months in March 2013 when the Special Prosecutor’s Office concluded that there were no grounds for filing charges against Erlendur and he was informed that the case against him had been dropped.

However, some months later the case was reopened at the request of the Financial Supervisory Authority (FME) and an indictment was issued in early August.

The case was filed to court the following month but has since ultimately been dropped.


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