Icelandic prosecutors have charged Þórarinn Arnar Sævarsson, a Remax real estate franchise owner, with market manipulation. The District Prosecutor also charged the company IREF, where Þórarinn held power of attorney.
The charges allege illegal trading activity occurred during a two-month period in 2020. Prosecutors say Þórarinn submitted 71 trading orders for Kviku bank shares that likely created false impressions about demand and pricing.
The manipulation involved systematically placing sell orders above market prices without legitimate business reasons. Authorities claim this created artificial trading patterns that distorted the true market value of Kviku bank shares.
Prosecutors say Þórarinn and IREF repeatedly executed final trades near daily closing times. This activity allegedly pushed closing prices upward or kept them at the high end of existing price ranges.
The District Prosecutor seeks criminal penalties and full coverage of legal costs. Market manipulation cases remain relatively rare in Iceland's financial sector.
This case highlights ongoing regulatory scrutiny over trading practices in smaller Nordic markets. Icelandic authorities appear determined to enforce market integrity rules despite the country's modest financial sector size.