SHARE
COPY LINK

NORDEA

Charges in Sweden’s largest insider scandal

Charges were filed on Friday against six men in what is being called the largest insider trading scandal in Swedish history.

The six men are suspected of having made around 130 million kronor ($16.3 million) through illegal inside deals, according to the Swedish Economic Crime Authority (Ekobrottsmyndigheten – EBM).

“This is Sweden’s largest ever insider trading indictment both in terms of the number of people and the amount of money,” said EBM public prosecutor Stig Åström in a statement.

The indictment comes following a wide-ranging investigation and relies on evidence gathered from telephone wiretaps.

The prime suspects are two men referred to in the Swedish press as the Cevian-man, age 36, and the Nordea-man, age 37.

They are both charged with serious tax crimes and serious insider trading crimes.

According to prosecutors, the Cevian-man failed to declare capital gains worth 17.6 million kronor in 2005, while the Nordea-man failed to report earnings of 28.5 million kronor.

The insider trading crimes result from the fact that, according to the indictment, both men systematically used inside information when trading various financial instruments.

All told, the charges cover 23 deals, including transactions involving Norwegian Visma, Finnish Metso, Volvo, and Telia Sonera.

Time and again, Åström has been forced to ask for more time to carry out his investigation in part because of delays in receiving assistance from legal authorities in other countries.

The trial is likely to start in the summer, two and a half years from when the investigation was first made public.

According to Åström, the indictment is unique in several respects.

“It’s not only that it’s huge and comprehensive. Primarily, it’s the first time a case has been tried in which people, as far as we can tell, consciously sought out inside information and used it systematically,” he told the TT news agency.

“With previous cases in this area, it’s been board members who were informed and then perhaps traded stocks more by mistake. This is something we haven’t seen previously.”

BANK

Police to investigate Nordea bank over money laundering

Danish police will investigate the Swedish bank Nordea after a year-long probe by regulators into money laundering led to "criticism" of its procedures, the bank said Friday.

Police to investigate Nordea bank over money laundering
Photo: Marcus Ericsson / TT

Detectives will examine how money laundering rules were followed at the bank's Danish subsidiary and could result in “sanctions”, Nordea said in a statement.

“We realize that we initially underestimated the complexity and the time it takes to change our procedures,” said Nordea chief executive Casper von Koskull.

The bank added that 850 Nordea employees are currently involved in the fight against money laundering which the bank plans to increase to 1,150 by the end of the year.

In May 2015 the bank was fined 50 million kronor (€5.4 million euros) – the maximum possible – by Swedish regulators who accused Nordea of “not following money laundering rules for several years” and failing to “evaluate the risks of (doing business with) certain clients”.