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KTH students charged for money laundering

The Local/gm · 10 Jun 2011, 14:21

Published: 10 Jun 2011 14:21 GMT+02:00

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The pair from the prestigious university are thought to be the ringleaders of a gang involved in a huge money laundering operation, Sveriges Television (SVT) reports.

Ten people have been arrested so far following a long investigation by fraud investigators into reports of false accounting, money laundering and weapons offences.

The main leader behind the gang is said to be a 35-year-old student at KTH, who, together with his 25-year-old, is said to have developed a sophisticated way of laundering more than 100 million kronor using up to one hundred different companies.

Most of the companies involved are in the construction, sheet metal, and roof sweeping business.

By using false invoices, those suspected of involvement in the scheme withdrew sums of more than 100,000 kronor at a time allegedly using a foreign exchange office in central Stockholm.

According to investigators, the two ringleaders netted a profit of around 15 million kronor in the operation, SVT reports.

Police believe that the gang used a premises in the Djurgården neighbourhood of Stockholm as their secret base. A pistol and an assault rifle with ammunition were found at the scene.

Story continues below…

When arrested the students admitted to knowledge of the weapons in a hideout that prosecutors believe could also have been used by other criminals to stash weapons.

The two KTH students will stand trial in the Stockholm District Court in two weeks time.

The Local/gm (news@thelocal.se)

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Your comments about this article

17:01 June 10, 2011 by BaiBye
so sad... hopefully there will be no theft in sweden anymore
17:23 June 10, 2011 by Nora
KTH rocks! :)
18:29 June 10, 2011 by TheOriginalBlackMan
16 miliion dollars!!! WOW!! Now that's a robbery. I wonder what which one of the suspects upset his boyfriend for him to rat him out?

Nonethelss, money laundering , credit card scams and identity theft, effect more people and are specifically done by a certain group of people, which will remain un-named (wink!) Look into your own backyard and maybe you will not have to retire at 92.
04:48 June 11, 2011 by Kaethar
So much potential gone to waste...
07:57 June 11, 2011 by update-2011
really sad..they are students and they have destroyed their future by themselves!Bravo Sweden!
09:47 June 11, 2011 by jackx123
Bravo Sweden?

Not sure this is sweden specific. How about the 130 customs officials in the US who took sex in return for turning a blind eye to smugglers of drugs and human trafficking.
11:18 June 11, 2011 by mikmak
What does this have to do with KTH? How can their school/employer be relevant at all here, more than as an "ad hominem" cheap shot?
13:17 June 11, 2011 by Kaethar
I think it's relevant because KTH is one of the best schools in Sweden. Just goes to show that the easy-money bug doesn't only affect the poorest.
17:20 June 11, 2011 by mikmak
What does being a good school have to do with income, last I checked It didn't cost a dime to go to KTH. Or any oher school in Sweden for that matter.
10:00 June 12, 2011 by gudvalsignedig
So sad incident.
17:00 June 12, 2011 by jackx123
it just shows KTH is at the forefront of creative and inventive thinking
12:02 June 13, 2011 by farnoxo
Welcome to the KTH full-time MBA!
19:09 June 15, 2011 by Extranjero
A week in a swedish prison will do them well!
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