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Danish Fraud Squad accuses eight bank chiefs of manipulating the market and earning big

Wednesday, 16 October 2013
Eight former bank executives are accused of market manipulation in Denmark worth some Dkr 6.9 million a legal prosecution just open was made public today.

In what is described as the largest case of market manipulation in Denmark, eight former bank managers are accused of having achieved a yield of Dkr6.9 million.
The eight defendants are all former senior managers in EBH Bank, Bank Kronjylland and Morso Savings Bank, reports Danish media.

The former top managers, through their family and specially set of specific companies bought shares in Vestjysk Bank A / S and bonds from Keops Ejendoms Obligationer and then artificially infected their prices. Afterwards, the securities / share are sold to make massive profits, reports hold.

Some participants earned hundreds of thousands of Danish krona, other millions more.
Finn Strier Poulsen who is a former CEO of Ebh Bank is said to be one of those who earned the highest from the deals, Danish daily, Politiken writes on its website.

Through trades made by his wife, his daughter and through his wife's investment connections, the market manipulation earned him some Dkr3.5 million in windfall profits.
The buyer of the shares was among others EBH bank’s Fund. According to prosecutors, the bank acted as de facto dustbin for the manipulated shares since the alleged fraudulent and artificial write up value of the portfolios did not reflect the market feelings about the products.

It is concluded that although on paper it was claimed that among others, the wives and relatives were the once who bought and sold the shares, it was actually the networks of the directors that stood behind the trades and thus enriched themselves on the banks' expense, the prosecution said according to media reports.

“It's a case that has been under investigation for a very long time. It has been really complicated, we have had many investigators who have dug really deep,” says special prosecutor at the Danish Public Prosecutor for Serious Economic Crime, Jørn Thostrup.
The maximum penalty for the charges is up to eight years in prison.
By Scancomark.com Team

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