District Court Acquits All in Exeter Case Skip to content

District Court Acquits All in Exeter Case

By Iceland Review

Reykjavík District Court ruled on Friday that all defendants in the so-called Exeter case, Jón Thorsteinn Jónsson, former chairman of the savings bank Byr, Ragnar Z. Gudjónsson, the bank’s former CEO, and Styrmir Thór Bragason, former CEO of MP Bank, were innocent of the Special Prosecutor’s charges of breach of trust.


Reykjavík District Court.

Bragason was also acquitted of charges of money laundering, dv.is reports. These were the first charges issued by the Special Prosecutor who is responsible for investigating the banking collapse in October 2008.

The case involves a loan worth approximately ISK 1 billion (USD 8.7 million, EUR 6.0 million) granted by the board of Byr to Exeter Holding in the last quarter of 2008.

The loan was used to buy capital shares in Byr from MP Bank and two of Byr’s board members at premium.

Jónsson and Gudjónsson were accused of having granted the loan to Exeter Holding, while Bragason was accused of having assisted them and accepted the money as the settlement of a debt to MP Bank.

All three defendants maintained their innocence throughout the trial, which began one year ago.

The three judges were in disagreement; two of them wanted to acquit all defendants while one believed Jónsson and Gudjónsson were guilty, visir.is reports.

According to mbl.is, legal costs, worth ISK 10.9 million (USD 95,000, EUR 66,000), are to be paid from the state budget, including the salaries of the lawyers representing the defendants.

A damages claim made by Byr was rejected.

Click here to read more about this case.


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