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Bankrupt Amagerbanken's management to be investigated for crimes by the Danish police

Wednesday, 16 January 2013
The Danish bank Amagerbanken af is being referred to the police by the Danish Financial services authority, Finanstilsynet, for possible financial crimes that led to the fall of the bank. This is being seen as one of the biggest legal showdown in the wake of the financial crisis that hit the bank in 2011.

The Danish Fraud Squad confirmed to the media that it has received a police report from the Danish FSA against a number of former top officials of Amagerbanken (pictured below) which led the bank in 2011 to one of the country's largest bank falls.

"We've got a review about Amagerbanken against 11 persons from the former management," says the head of the Danish financial police, Jens Madsen to Denmark radio and television news.

The members being sought are Amagerbanken's former CEO, Jørgen Brændstrup, the former Executive Board member Allan George Ottesen, the former chairman lawyer N.E Nielsen, and the rest of the board, - a total of 11 persons the FSA has reported to the police.

Among its members are Tårnby municipality's current socialist mayors, Henrik Zimino who is also sought.

The former top officials are accused that in 2009 and 2010 they did not intervened and prevented Amagerbanken as such it suffered a loss of Dkr394 million as a result of speculation in Swiss francs.

In an attempt to minimize losses in connection with a failed real estate deal, the bank's management in the last half of 2009 carried out property transactions in the auspices of Hans-Henrik Palm, Henrik Ørbekker and Olav Damkiær Classen with a credit line of Dkr1.5 billion to serve the losses through speculation in Swiss franc, report Danish Telvision news.

The money was made available to the three, despite knowing that the bank was close bankruptcy and would not be able to cover any losses. And as the speculation trial was started, the three carried continued after several laps despite the fact that bank management saw more and more money being lost in the manoeuvre.

Lars Bo Langsted, law professor at Aalborg University, commends the authorities for taking the management of Amagerbanken to court.
"It is important that a charge based on the Financial Business Act is respected. It is the main law in this area, to regulate banks' behaviour, so we avoid ending up in similar crises in the future. Therefore, it is important to challenge these clauses," he says.
According to Lars Bo Langsted, it is the first time the Financial Business Act is being used in connection with bank prosecution after the financial crisis.
Danish banks have worked the country's ailing economy and have made Denmark maintain a struggling economy for a while. Four Danish banks have crumbled since the financial crisis on 2008 notable, EBH Bank, Roskilde Bank Capinordic and Amagerbanken. All these banks are undergoing criminal investigation.
by Scancomark.com Team

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