Kaupthing executive labelled fraud suspect

The former chief executive of collapsed Icelandic bank Kaupthing has been named by prosecutors as a fraud suspect in an Icelandic market abuse case. Sigurdur Einarsson, residing in London, headed the bank until its failure and nationalisation on October 4 last year.

The fraud investigation relates to the mid-September 2008 purchase of $244 million in Kaupthing shares – a 5.01% stake – by Sheikh Mohammed Bin Khalifa al-Thani, a member of the Qatari royal family.

Financing for the deal reportedly c