Iceland's Glitnir Bank accused of Embezzelment

ChiefGrasscutter

Not really personal savings but interesting general background info…….

Iceland 3rd largest bank – the now nationalized Glitnir has been accused of embezzlement by Norway’s export finance agency - to the tune of USD 58m according to newspaper report.
See attached link which explains the allegation
http://icelandreview.com/icelandreview/daily_news/?cat_id=16567&ew_0_a_id=314255

Quote:
When Glitnir Bank was nationalized by the Icelandic state, Eksportfinans requested that borrowers direct payment to them instead of Glitnir and consequently discovered that borrowers had paid off the loans in full and Glitnir had kept the funds, sending only the regular loan payments to Eksportfinans, as the agency’s director Gisele Marchand revealed
Endquote:

If true this is a real humdinger

Norway is now acting to freeze Glitnir’s assets in Norway
It is also freezing Landsbanki’s assets on behalf of claims from Holland

FraudBuster

Financial Times 8th July 2005.

But the country's new-found business ebullience was given a jolt last week when Icelandic police announced the indictment of father and son Johannesson and four co-defendants on 40 charges including embezzlement, which carries a maximum six-year prison term in Iceland.
Full details of the charges have not yet been revealed but are understood to involve funds allegedly removed from Baugur. Lawyers for Baugur have played down the importance of those they have so far discussed during a three-year police investigation, saying the company and its shareholders do not see themselves as the victim of any crimes, as the police allege. Jonatan Thormundsson, professor of law at the University of Iceland, wrote a strongly worded rebuttal of the charges that was widely publicised by Baugur.

http://www.ft.com/cms/s/0/406731f4-ef44-11d9-8b10-00000e2511c8.html?nclick_check=1