79

Business

Former bank CEOs charged with stock manipulation

admin
October 2nd, 2013


This article is more than 11 years old.

A network of bankers conspired to profit from inflated stock prices and used their wives as cover

A network of high-ranking bankers have been charged with stock manipulation, fraud and a criminal breach of trust by the state prosecutor for special economic and international crimes (SØIK) 

The bank officials, which include former CEOs and board chairman, artificially raised the value of stocks that they sold for enormous profits in 2008, reports DR Nyheder.

DR Nyheder reports that among those charged for the crimes are the former CEOs of EBH Bank, Morsø Sparekasse and Sparekassen Kronjylland – Finn Strier Poulsen, Jørn Balch Christensen and Jacob Leth respectively – along with EBH Bank’s former chairman of the board Egon Korsbæk.

Used wives to buy stock
According to SØIK the accused bought stocks through their wives and in turn made their banks buy and sell the stocks for ever-increasing prices.

This made stocks price rise and allowed the wives to sell them off for huge profits to specially-established funds set up with the sole purpose to trash the stocks whose prices had become massively inflated.

DR Nyheder reports that the banking officials can each face up to eight years in prison.


Share

Most popular

Subscribe to our newsletter

Sign up to receive The Daily Post

















Latest Podcast

A survey carried out by Megafon for TV2 has found that 71 percent of parents have handed over children to daycare in spite of them being sick.

Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

Pill pushers
At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”