Large Tax Fraud Conviction Handed Down Skip to content

Large Tax Fraud Conviction Handed Down

Friðjón Björgvin Gunnarsson, CEO of several Icelandic companies, has been sentenced to two-and-a-half years’ imprisonment for breaking tax law, bookkeeping law, and for money laundering.

Friðjón was also sentenced to pay the Icelandic treasury ISK 30 million (EUR 2.55 million/USD 2.72 million) within four weeks, or else face an additional year on his prison sentence. His wife, Harpa Hlynsdóttir, was also handed a four-month suspended sentence.

Vísir reports that during the investigation, police confiscated around ISK 5 million, as well as many electronic devices, including laptops, games consoles, mobile phones and more.

Friðjón’s tax evasion is reported to amount to around ISK 100 million. He stood accused of not paying large amounts of VAT through his company Gegn einokun in 2012 and 2013, to the tune of ISK 83.5 million, and ISK 2.5 million through his company 1949.

He also stood accused of not having booked takings to the value of ISK 41 million—allowing him to deprive the State of ISK 16.5 million in taxes and duty.

The couple were jointly accused of money laundering, with Friðjón having paid ISK 21 million, the profits from tax evasion, into his Landsbankinn account. He is said to have stored the money there in order to later pay his and his wife’s credit card bill.

Finally, he was accused of having paid ISK 11.5 million into his wife’s bank account, for which she was also convicted for having willingly received the products of money laundering.

Accusations against Friðjón have been frequent in recent years, with DV alleging that 12 of the 17 companies he has been connected with have declared bankruptcy—allegedly for tax evasion purposes.

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