Reykjavík District Court acquits former Baugur CEO Skip to content

Reykjavík District Court acquits former Baugur CEO

Reykjavík District Court found the former CEO of Baugur Group Jón Ásgeir Jóhannesson, who is currently the chairman of the company’s board, not guilty on charges of fraud and embezzlement.

Reykjavík District Court thereby changed its ruling from May 3, when Jóhannesson was given a three-month suspended sentence. Jóhannesson had appealed to the Supreme Court of Iceland, which sent the case back to Reykjavík District Court with its ruling on June 1, Morgunbladid reports.

All charges against Jóhannesson were related to alleged illegal loan granting. Reykjavík District Court concluded that in four of the nine charges violations of regulations on corporations had taken place, but due to unclear penal guidelines, the judges concluded Jóhannesson could not be convicted for any of the charges.

On May 3, Baugur’s former director Tryggvi Jónsson was given a nine-month suspended sentence on charges of fraud and embezzlement, and yesterday, Reykjavík District Court changed it to a 12-month suspended sentence.

Jónsson was found guilty of having embezzled ISK 548,000 (USD 8,700, EUR 6,500) by having Baugur pay for his personal expenses.

Jón Gerald Sullenberger, managing director of Nordica, who was acquitted of all charges on May 3, was given a three-month suspended sentenced with yesterday’s ruling.

Sullenberger was found guilty of having assisted Jóhannesson and Jónsson with preparing an unfounded credit invoice worth ISK 62 million (USD 986,000, EUR 733,000).

Both Sullenberger and Jónsson have decided to appeal the ruling to the Supreme Court.

Click here to read more about the ruling of Reykjavík District Court on May 3.

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