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NORDEA

Trial starts for Sweden’s largest insider scandal

District court proceedings kicked off in Stockholm on Monday for what has been called the largest insider trading scandal in Swedish history.

Trial starts for Sweden's largest insider scandal

Five men stand accused of serious insider trading crimes. The prime suspects are two men referred to in the Swedish press as the Cevian-man, age 36, and the Nordea-man, age 37.

One additional suspect stands accused of being an accessory to serious insider trading crimes.

The accusations are grounded in a number of securities deals made with around 20 companies. According to the prosecution, the deals were conducted on the basis of insider information, generating an estimated profit of 130 million kronor ($18.4 million).

The Cevian-man and the Nordea-man are also charged with serious tax crimes which, like insider trading crimes, carry a possible penalty of several years jail time.

On his passage into the courthouse, the Cevian-man stopped to respond to questions from the media,

“I am here to prove that I haven’t earned a penny from insider information and I intend to show that,” he told the TT news agency.

When asked how he intended to prove his innocence, the man responded,

“You will have to see during the trial.”

The 36 year-old also denied claims from the prosecution that the accused discussed their illegal affairs in coded language, making reference to a form of terminology used throughout the financial industry in which every project is given a special name.

District court proceedings are expected to continue into February of next year.

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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”.