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Fraud squad has new charge for Realkredit

The Danske Bank unit Realkredit Danmark faces accusations of leaking insider information and price manipulation.

Published: 21 July 2014 23:15 CEST
Fraud squad has new charge for Realkredit
Photo: Thomas Borberg/Polfoto
Realkredit Danmark, the mortgage unit of Danske Bank, is facing an additional charge of revealing insider information in an ongoing price manipulation investigation. 
 
The public prosecutor for serious economic and international crime (Statsadvokaten for Særlig Økonomisk og International Kriminalitet) has expanded the charges against Realkredit and one of its employees who was already facing charges of price manipulation.
 
The new accusations allege that the employee disclosed inside information about a new two percent mortgage bond to an employee of Danske Bank in August 2009.
 
In addition to that employee, three other individuals are under suspicion of price manipulation. Charges against two senior Danske Bank employees were dropped earlier this month. 
 
Danske Bank itself instigated the initial investigation by the Danish Financial Supervisory Authority (Finanstilsynet) after it was found that the company’s rules on bond transactions had been violated. 
 
Realkredit Danmark, which announced the additional charge in a stock exchange announcement on Monday, said it was cooperating with the investigation. 

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DANSKE BANK

Danish police drop money laundering case against Danske Bank directors

Denmark’s economic crime unit SØIK has dropped potential charges for money laundering against three leading former directors of Danske Bank, Denmark’s largest bank, but investigation of the bank itself continues.

Published: 30 April 2021 17:15 CEST
Danish police drop money laundering case against Danske Bank directors
File photo: Jacob Gronholt-Pedersen/Reuters/Ritzau Scanpix

The three directors, Thomas Borgen, Henrik Ramlau-Hansen and Lars Stensgaard Mørch were investigated in relation to a scandal involving large-scale money laundering at the Estonian division of the bank.

Each of the three confirmed to newspaper Børsen that charges have been dropped.

In a written statement to media, SØIK said it had not uncovered “evidence that any individual has shown negligence to such an extent that it can be characterised as gross” and that the law had therefore not been broken.

“For an individual to be convicted under money laundering laws, they must have committed gross negligence. In this case we have conducted a vert comprehensive and thorough investigation with a number of investigative steps,” acting head of SØIK Per Flig also said in the statement.

The bank itself is still under investigation for possible breach of money laundering laws, however, Flig noted.

READ ALSO: US files lawsuit against scandal-hit Danske Bank

No individuals now remain under suspicion in the investigation, meaning SØIK has dropped cases against all leading bank executive who were suspected by police in March 2019.

Around 1,500 billion kroner from foreign customers flowed through the Estonian division of Danske Bank between 2007 and 2015, an investigation found.

A large proportion of that money is considered to be suspicious. The scandal resulted in Borgen’s resignation as CEO and the bank closed its Estonian branch in 2019.

READ ALSO: More on the Danske Bank money laundering scandal

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