Iceland Just Sentenced Its First Bankster To Prison

Welding, fv. CEO of Glitnir, the Reykjavík District Court today sentenced to nine months, six months suspended. Requested five and a half years’ imprisonment on him, and five years in prison over Gudmund Hjaltasyni, former. Director of Corporate Finance. Gudmund received the same sentence and Welding.

Lara and Gudmundur were accused of having taken the decision to lend Milestone 102 million, which was about ten billion in the form of money market lending 8th February 2008. The loan was granted without collateral and guarantees, and the decision taken outside meetings risk committee. They both refused to blame.

Prosecutor in the case said the main hearing to prove was that Lara and Gudmund had violated the rules of the loan with the bank the loan. Broken holds that they abused their position within the bank and would be a serious trúnaðarbrot case, unauthorized appropriation of vast resources would lead to financial loss risk for the bank and the biggest part of the loan is lost.

Defender Lárus said, however, that no witnesses who came before the court was able to confirm that Lara and Gudmundur has something to do with lending. “Rests on the prosecution to prove, and they will only be convicted if there is doubt that they have decided to lend Milestone. Prosecution gets no discount verification requirements in the case. “