Prosecutor files charges in Baugur case Skip to content

Prosecutor files charges in Baugur case

In a prominent story on its front page, Morgunbladid reports that the special prosecutor appointed in the Baugur case has refiled 17 of 32 charges dismissed by the Reykjavík District Court and the Icelandic Supreme Court last year.

The new set of charges consists of 19 counts with one count of the original 17 having been split in two.

The list of witnesses includes 79 names. The list include the former and current CEO’s of Glitnir (Íslandsbanki), Valur Valsson and Bjarni Ármannsson, several employees of Kaupthing (KB-Bank), including the current chairman, Sigurdur Einarsson, and CEO, Hreidar Már Sigurdsson, the rector of Reykjavík University and former Baugur director Gudfinna Bjarnadóttir, and more.

The defendants under the new set of charges are Jón Ásgeir Jóhannesson, CEO of Baugur, Tryggvi Jónsson, ex-CEO of Baugur and their former business partner Jón Gerald Sullenberger.

Jón Ásgeir is charged with making illegal loans, but, unlike previously, Tryggvi is not.

Jón Ásgeir is charged with violations of the commercial code; previously he had also been charged with violations of the criminal code.

In one instance Jón Ásgeir is charged with more serious offenses than before. He is charged with having made profits of ISK 200 million in relation to the acquisition of the retail chain 10-11 by Baugur. Overall, his alleged embezzlement is said to have cost Baugur ISK 325 million.

Jón Ásgeir and Tryggvi are also charged with manipulating Baugur’s accounts and filing false statements with the Icelandic Stock Exchange. Instead of claiming loans were made between Baugur and Gaumur, the investment company of Jón Ásgeir’s family, the prosecution now maintains that certain transactions were made in order to give a wrong impression about Baugur’s financial condition.

Jón Gerald Sullenberger is charged with one count of issuing bogus invoices and “assisting the defendants” in manipulating Baugur’s books.

According to Morgunbladid, Jón Ásgeir said yesterday in the District Court of Reykjavík, “I am completely innocent.”

The defendants all demand that the Court dismiss the new charges.

Jón Gerald Sullenberger made the additional demand that one of the three judges be dismissed.

Sign up for our weekly newsletter

Get news from Iceland, photos, and in-depth stories delivered to your inbox every week!

Subscribe to Iceland Review

In-depth stories and high-quality photography showcasing life in Iceland!

Share article


Recommended Posts