Under investigation. Part 3

3. The Wernerson brothers

The special prosecutor raided the HQ of Sjóva insurance company yesterday at the same time as the offices of Milestone. Also raided where the homes of brothers Karl Wernerson and Steingrímur Wernerson and ex Sjóvá CEO Þór Sigfússon. A number of people are said to be under investigation one way or another. The National Commissoner of the Icelandic Police (fraud office), FME and the staff of the special prosecutor took part in the raids. Also raided where the offices of The Federation if Icelandic Industries the new workplace of Þór Sigfússon. Askar Capital offices where also raided.karl_wernersson

The case was sent to the special prosecutor from The Financial Supervisory Authority (FME).

Milestone gets full ownership of Sjóvá in 2006.

One of the issues under investigation are the investments in projects like the 24 luxury apartments in China in a brand new skyscraper for millions of dollars. Most of the money came from the insurance funds from Sjóva. They are believed to have gambled with the funds way beyond any regulations and any common sense.  The apartment prices fell when the global market took a dive and the Icelandic Krona collapsed so that the investment became to much. Before that happened Milestone had already transferred around 50 billion ISK into the Sjóvá accounts.

The situation for Sjóvá was so bad that the company couldn‘t even pay out insurance claims to customers and had to get a cash injection from an outside source. In this case from the Glitnir bank oversee committee, who have admitted that they had to inject around ten billion ISK into the company. The special prosecutor is investigating weather investments from the mother company Milestone where diverted into Sjóvá in the last two years are.  The case in question is about the illegal use of insurance funds. There are three main issues at hand, the breach of private corprate law, breach of insurance practice law and general embezzlement and fraud laws.Sjova HQ

When Milestone got full ownership of Sjóvá insurance, the investment part was dealt with by Milestone and the insurance by Sjóvá executives. This was done so that the corporate loss of insurance business could not be rectified by investment profits. But the investments where kept on the Sjóvá books, even though they had nothing to do with it.

A part of the investment assets moved from Milestone to Sjóvá to balance out a certain business debt has not been explained by the CEO‘s of Milestone and Sjóvá. Other assets Sjóvá bought from Askar Capital, the corporate investment bank owned by the Wernerson brothers.  Those transfers are also a part of the investigation.

The Wernerson brothers who are the main characters in this investigation have all kinds of projects. Here is one they are in litigation problems in the USA, Milwaukee to be specific. See here and here as well.

They own the Swedish Invik & Co. AB  insurance company that later became known as Moderna.
Then the main scoop. Moderna and the Wernerson brothers are under tax investigation in Sweden, and have been on the radar of the Swedish tax authorities for a long time.

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