Former bank CEO jailed in Iceland for market manipulation

Sigurjón Þ. Árnason, former CEO of Landsbanki, was sentenced to 12 months in prison by Reykjavík District Court earlier this morning for market manipulation between November 1, 2007 and October 3, 2008.

Nine months of the sentence are suspended for two years, reports. The period which Sigurjón was held in police custody will be deducted from his sentence.

Two of the bank’s staff members, Ívar Guðjónsson and Júlíus Steinar Heiðarsson, also received nine month sentences, six months of which are suspended for two years.

A fourth former employee of the bank, Sindri Sveinsson, was acquitted of the Special Prosecutor’s charges.

Half of Sigurjón’s legal fees will be paid by the State Treasury and the full amount of Ívar’s fees.

The defendants were not present during this morning’s sentencing.

The case is one of the largest in the wake of the 2008 financial collapse in Iceland.

Iceland Landsbankinn bank