Skandia bosses risk prison

Lars-Eric Petersson and Ulf Spång, two former executives of insurance company Skandia, face possible prison terms as a result of alleged tax crimes.

State prosecutor Christer van der Kwast claims that both executives withheld a combined total of 72 million kronor from tax authorities.

Earlier this month, former Skandia CEO Petersson was cleared of charges in a case involving bonuses paid out by the insurance company during 2000. Prosecutor van der Kwast subsequently asked the Supreme Court to review that verdict.

Hearings in the tax evasion case, which started late last week, concern the transference of money from a Skandia subsidiary in Switzerland to a foundation in Lichtenstein, and thereafter to Spång’s own firm, Kaca Property, which is based in the Guernsey.

Both of the accused deny the tax evasion charges. “The prosecutor has totally misunderstood why I shifted the money, and this will become apparent during the trial,” said Ulf Spång.

TT/David Bartal