An interest penalty on behalf of the Swedish Pensions Agency, estimated at SEK85m (€8.85m), has been added to the lien demanded by the prosecutor in the Allra fund scandal currently winding its way through Sweden’s legal system.
The sum is the latest of a number of figures put forward by authorities investigating how some SEK19bn (€1.97bn) of assets belonging to 130,000 long term savers could have been put in danger by the company’s managers.
The Pensions Agency stopped trade in Allra funds on its PPM platform earlier this year, subsequent to which the funds were sold to Ålandsbanken in May.
On Friday, Stockholm district prosecutor Thomas Hertz obtained a remand decision from the Stockholm District Court, resulting in Allra chief executive Alexander Ernstberger and Oak Capital chief executive Olle Markusson being detained.
The Court wrote that the two were suspected of engaging in a number of serious crimes, including accounting crimes. The Court set a date of 27 October for a case to be brought, but added that the prosecutor would be able to ask for additional time to prepare, in which case the Court would test whether such an extension should be granted.
The Court also ruled that a lien of SEK242.4m (€25.2m) should be enforced “to secure eventual damages”.
Hertz was cited by business daily Dagens Industri as stating that Ernstberger could face up to eight years in prison for the alleged crimes.
Markusson has been remanded on charges including serious accounting crime. The allegation is that Oak Capital sold securities worth SEK430m (€44.8m) to Allra in 2012, but took a commission of 40%. The costs of the related financial products were carried by savers in Allra’s funds.
A third, un-named, person who had been remanded since 29 September was released by the court, with Hertz suggesting that in light of the other remand decisions, the risk of collusion to sabotage the ongoing investigation had been significantly reduced.