Three years in prison and nearly 2 billion fines

Sigurður Gísli Björnsson was sentenced to imprisonment for three years and for payment of over ISK 1.8 billion to the Treasury for large -scale tax violations and money laundering, triple the amount of arrears.

If the fine is not paid within four weeks of the verdict, Sigurður shall be imprisoned for 360 days.

In addition, bank accounts were confiscated by just over ISK 8.7 million and just over $ 31,000, as well as accrued interest and indexation from December 22, 2017.

Sigurður Gísla and HK-68 ehf. (formerly Særark Sea Products) is made to pay the defense salary of their appointed defense attorney, Thorsteinn Einarsson, a lawyer, in the amount of just over ISK 14.7 million.

A verdict fell this week in the District Court of Reykjanes, which did not consider the grounds for a sign of any part of the punishment.

Two men were sentenced, as well as Sigurður Gísli for membership in the case, one in eighteen months in prison, including fifteen suspended, the other in three months in prison and to pay a fine of ISK 3.5 million to the Treasury. If he does not pay the guilt within four weeks of the verdict, he shall be imprisoned for 80 days.

The other man was made to pay the commission of his appointed defendant, Ingolfur Vignir Guðmundsson, a lawyer in the amount of just over ISK 725 thousand, but the defendant of the other man surrendered the defense.

The case has been taught to the fish export company Særark Sea products, but Sigurður Gísli is the owner and managing director.

He was convicted of avoiding paying almost half a billion krónur in taxes after taking almost ISK 1.1 billion out of the company’s operations and placed in offshore companies he owned.

He was also convicted of avoiding paying a total of over 100 million in taxes in connection with Særark’s operations by having the company’s under -depth income and the salary payments of employees of a total of ISK 1.1 billion, thereby avoiding paying 81.8 million in social security contributions.

The other two men were convicted of assisting Sigurd Gísli in his offenses, including the issue of incorrect and unreasonable sales accounts.

Large -scale and organized offenses that reflect a determined offense

This is a hugely extensive tax evasion case and the judgment states that Sigurdur’s violation has been large, organized and committed in a penalized manner that reflects a determined willpower, both taking into account the amounts and methods of the violations.

Then the violations have been over for a long time and they have been hidden in an organized manner.

Violations of Sæarks and Sigurður Gísli turn to substantively incorrect tax returns for Sämark for years, as the company’s operating income was undergoing misunderstood due to misguided discounts for product sales to North Coast Seafood Corp. and Atlantic Fresh Ltd.

Operating expenses were also being overturned for trading at Hrastfrystihús Hellis-Sand hf. and due to postpaid discounts from carriers.

In addition, Sämarks and Sigurður Gísli turn to the substantively incorrect VAT reports for Sæmark during several settlement periods by overcrowding tax on the basis of incorrect and unreasonable sales accounts issued by SB EHF. and thus the vanticism of value added tax that was paid.

The salary payments of Særark’s employees were inaccurate for many years, which formed deductible costs in the company’s operations, and the company thus escaped the payment of the insurance contribution.

Særark’s accounting accounts for years were entered for years to North Coast Seafood Corp., Atlantic Fresh Ltd. and Hrastfrystihus Hellissand hf. Furthermore, misrepresentations in the company’s accounts were also included in the charges of unscrupulous sales accounts from Amih Ltd. and Amber Seafood GmbH. as well as windows and door workshop SB ehf.

Sigurður Gísli’s violation then turns to the fact that he has made substantively incorrect tax returns for years by preparing to state as taxable income more than a billion krónur for his withdrawals from Særark’s operations.

The money laundering share is that Sigurður Gísli had paid Særk to pay for unrelated charges and misrepresented discount accounts in the company’s accounts in the amount of nearly ISK 1.3 billion.

Part of Sigurður’s unlawful audits from Sæmmark were allocated to the offshore companies Freezing Point Corp. and Fulcas Inc. to which Sigurður Gísli was the real owner.

E -mails related to the offshore companies

The judgment reviews data relating to the two offshore companies. This includes, among other things, an unprepared contract from 2014 between Sigurður Gísla and North Coast Seafoods Corp. on the Company’s acquisition of a 50% stake in Sæmörki-Sea Products ehf. The agreement assumes that secrecy should rest on ownership.

E -mail from Norm Stavis, owner of North Coast Seafoods Corp., from December 7, 2014, says in Icelandic translation: « U tells me that we have a contract. Congratulations on your new marriage !!!

In Sigurður Gísli’s email to the aforementioned U from November 14, 2012, with the caption « Rebate, he says, among other things, in Icelandic translation: » I am looking at the books here in Iceland and I think we could live with discounts in the amount of $ 1,000,000 for 2012, which we would switch to $ 50/50 … « 

In response, he asks, among other things, why the discount is $ 1,000,000, as it was almost $ 1,200,000 the year before. In Sigurður Gísli’s reply, M.A.

That is why U answers if « this works like this … » We will keep it all behind and then I will send you $ 598,158.89 wherever you want and I will take care of the norm for the other $ 600,000 « .

Sigurd completely denied the blame. However, there was little deducted in e -mails that came to the court.

mbl.is/hákon

In an email to Sigurður Gísli from March 11, 2015, U says, among other things: « I have something you have !!!!!!!!!! Sigurður Gísli replies the same day: « Do the same thing you did last year (…) Let me know if you no longer have the information. »

Subsequently, U asks: « Fulcas in Luxembourg or Freezing Point in Panama ». A day later, March 12, 2015, North Coast Seafoods paid Corp. US $ 606,215 to Freezing Point Corp.

Data also show that U sends an email to Sigurður Gísla 29 December 2015, together with a discount account, dated December 14 of the same year, due to the period 1 January to 12 December 2015, in the amount of $ 1,318,203. In the mail, U asks: « Does this go ?? What will be the division ??? » Sigurður Gísli defended the email the same day and replies that this will happen.

On January 6, 2016, Sigurður Gísli sends an email to U stating the division is: « 562,950 USD Iceland » and « 755,253 USD USA ». U responds to them a day later and sends a discount account in the attachment and also asks if he can « … start holding next week … 100,000 a week ??? » He also asks if it was the same place as last year for the accused Sigurd Gísli « when it was time ».

The data shows that North Coast Seafoods Corp. In placed the aforementioned amount, USD 562,950, into bank account Freezing Point Corp. February 25, 2016.