On 12 December, the Reykjavik district court convicted the former chief executive, the former chairman of the board and one of the former significant minority owners of Kaupthing Bank of securities fraud and sentenced them to between three and five and a half years in prison.
The sentences represent the stiffest sentences for financial fraud in Iceland’s history and are the first passed against former top management in trials pertaining to the pre-collapse actions by Kaupthing, Landsbanki and Glitnir in 2008, which nearly bankrupted the country.
Dr Mårten Knuts led the Krogerus team that has been advising the Special Prosecutor’s Office of the Republic of Iceland on investigations and regulatory compliance issues since 2011.
Mårten is a professor of securities law at the University of Helsinki’s Faculty of Law. He advises on transactions and is frequently called upon by corporations and sovereign governments to provide counsel on their complex regulatory matters and internal investigations.
Commenting on the sentencing, the Financial Times labelled Iceland’s launching of criminal cases against the leaders of the three main banks: “almost unique in the western world”.
The case remains pending, as the defendants are likely to appeal, according to BBC News.