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| Iceland jails former Kaupthing bank bosses | Iceland jails former Kaupthing bank bosses |
| (35 minutes later) | |
| Four former bosses from the Icelandic bank Kaupthing have been sentenced to between three and five years in prison. | Four former bosses from the Icelandic bank Kaupthing have been sentenced to between three and five years in prison. |
| They are the former chief executive, the chairman of the board, one of the majority owners and the chief executive of the Luxembourg branch. | They are the former chief executive, the chairman of the board, one of the majority owners and the chief executive of the Luxembourg branch. |
| They were accused of hiding the fact that a Qatari investor bought a stake in the firm with money lent - illegally - by the bank itself. | They were accused of hiding the fact that a Qatari investor bought a stake in the firm with money lent - illegally - by the bank itself. |
| Kaupthing collapsed in 2008 under the weight of huge debts. | Kaupthing collapsed in 2008 under the weight of huge debts. |
| For years, Kaupthing and other Icelandic banks had aggressively pursued overseas expansion plans, but when they went into administration, they brought the country's economy to its knees. | For years, Kaupthing and other Icelandic banks had aggressively pursued overseas expansion plans, but when they went into administration, they brought the country's economy to its knees. |
| Just a few weeks before the collapse, Kaupthing announced that Sheikh Mohammed Bin Khalifa Bin Hamad al-Thani had bought a 5.1% stake during the financial crisis in 2008. | Just a few weeks before the collapse, Kaupthing announced that Sheikh Mohammed Bin Khalifa Bin Hamad al-Thani had bought a 5.1% stake during the financial crisis in 2008. |
| The move was seen as a confidence boost for the bank. | The move was seen as a confidence boost for the bank. |
| Legal costs | Legal costs |
| Hreidar Mar Sigurdsson, the former chief executive, received five and a half years, while Sigurdur Einarsson, former chairman of the board, was sentenced to five years in jail. | Hreidar Mar Sigurdsson, the former chief executive, received five and a half years, while Sigurdur Einarsson, former chairman of the board, was sentenced to five years in jail. |
| These are the heaviest sentences for financial fraud in Iceland's history. | These are the heaviest sentences for financial fraud in Iceland's history. |
| The court gave Olafur Olafsson, one of the majority owners three years and Magnus Gudmundsson the former chief executive of the Luxembourg branch, three and a half years. | The court gave Olafur Olafsson, one of the majority owners three years and Magnus Gudmundsson the former chief executive of the Luxembourg branch, three and a half years. |
| None of them were in court for the decision but it is expected that they will appeal. | None of them were in court for the decision but it is expected that they will appeal. |
| The four were also made to pay their own legal costs for the case, which amount to millions of pounds. | The four were also made to pay their own legal costs for the case, which amount to millions of pounds. |
| The special prosecutor said the deal had influenced the bank's share price. He also said the loans provided for the deal were illegal. | The special prosecutor said the deal had influenced the bank's share price. He also said the loans provided for the deal were illegal. |
| Deceived | Deceived |
| Kaupthing Singer and Friedlander was the UK arm of Kaupthing Bank - the largest of the Icelandic banks that went into administration in October 2008. | Kaupthing Singer and Friedlander was the UK arm of Kaupthing Bank - the largest of the Icelandic banks that went into administration in October 2008. |
| According to the Icelandic media, the charges state that the deal was done by first depositing a loan from Kaupthing bank into shell companies in the British Virgin Islands. | According to the Icelandic media, the charges state that the deal was done by first depositing a loan from Kaupthing bank into shell companies in the British Virgin Islands. |
| The money then went from there to a Cypriot based company called Choice, which was owned by Olafsson, Sheikh al-Thani and al-Thani's adviser. | The money then went from there to a Cypriot based company called Choice, which was owned by Olafsson, Sheikh al-Thani and al-Thani's adviser. |
| From there it was moved to another firm called Q Iceland Finance, also owned by al-Thani, and then finally ended up back in the bank to pay for the shares. | From there it was moved to another firm called Q Iceland Finance, also owned by al-Thani, and then finally ended up back in the bank to pay for the shares. |
| It was never publicly stated that the company owned by Olafsson was party to the deal. | It was never publicly stated that the company owned by Olafsson was party to the deal. |
| Sheikh al-Thani did not testify but he gave a statement to the prosecutors. In it, he said he did not know of any direct involvement by Olafsson to the deal. | Sheikh al-Thani did not testify but he gave a statement to the prosecutors. In it, he said he did not know of any direct involvement by Olafsson to the deal. |
| Al-Thani's lawyers, who made an agreement with Kaupthing's administrators, said he considered himself to have been deceived. | Al-Thani's lawyers, who made an agreement with Kaupthing's administrators, said he considered himself to have been deceived. |