Former FL Group CEO Denies All Accusations Skip to content

Former FL Group CEO Denies All Accusations

Former CEO of Icelandic investment company FL Group, Hannes Smárason, released a statement yesterday, denying all accusations of wrongdoing. He intends to appeal the ruling of the Reykjavík District court that house search of his property was just to the Supreme Court.

Hannes Smárason. Photo by Páll Stefánsson.

In the statement, Smárason provides counterarguments to some of the accusations made against him.

He states that the alleged fraud in relation to FL Group’s acquisition of Sterling Airlines in October 2005 was based on Sterling’s operating budget, that it was presented publicly and approved by FL Group’s board. The market was favorable to the acquisition because no laws were broken, reports.

In regard to an alleged illegal loan granted to Smárason by FL Group in 2005, Smárason explained that documentation shows that funds were transferred between bank accounts owned by FL Group at the period in question without himself or companies related to him having any special interests involved. FL Group’s accountant had confirmed that such a transfer couldn’t be regarded as an illegal loan to Smárason.

Smárason also denies alleged tax evasion connected to a payment from FI Investments in 2007 (in 2006, according to yesterday’s story); he claims that all of the company’s payments were correctly registered to the accounts. FI Investments owes him large amounts of money and the company’s payments for Smárason’s personal costs were therefore considered down payment of this debt.

A letter sent to the National Commissioner of the Icelandic Police from Smárason’s lawyer states that Smárason had a rightful claim to ISK hundreds of millions from FI Investments.

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