Bankers Case Re-Opened Six Years Later Skip to content
Photo: Lárus Welding (right), with his defendant (left)..

Bankers Case Re-Opened Six Years Later

The so-called Aurum Holding case has been reopened in the appeal court Landsréttur today, Vísir reports. The case revolves around investment bank Glitnir’s loan to FS38, which amounted to ISK 6 billion ($54m/€46m). The loan was believed to be fraudulent, as the loan to FS38 was used to buy a 25.7% share in the British jewelry chain Fons. Both FS38 and Fons were owned by Pálmi Haraldsson.

The charges were originally made in December 2012, but have twisted and turned in the Icelandic judicial system. The Aurum Holding case was examined heavily after the crash of 2008. It culminated with a search warrant, which warranted heavy media interest, and the following case against bankers Jón Ásgeir Jóhannesson, Lárus Welding and Magnús Arnar Arngrímsson.

Businessman and former banker Jón Ásgeir Jóhannesson, has been called into court yet again to answer for his dealings in the period leading up to financial crash of 2008. In 2010, Jón Ásgeir made Time magazine’s list of the hundred most influential people in the world for his role in the Icelandic crash. He faces charges on behalf of Glitnir, as Jón Ásgeir was one of the largest shareholders in Glitnir at the time of the transaction. Others facing charges again in the Court of Appeal are Lárus Welding, the ex-CEO of Glitnir, and Magnús Arnar Arngrímsson, the former executive director of the company branch of Glitnir. Glitnir’s name was reverted back to Íslandsbanki on 20 February 2009, after the crash.

Lárus and Magnús had previously been convicted for their actions but appealed the case to the Court of Appeals. Lárus received a one-year sentence while Bjarni was sentenced to two-years in prison. Jón Ásgeir had been cleared of all charges but the district attorney appealed that conviction to the Court of Appeal. The cases are now being resolved in the Court of Appeals.

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