
Two high-profile megayacht owners have been arrested in connection with the collapse of one of Iceland’s largest commercial banks. The arrests came yesterday, the day before they planned an event aboard one of their yachts.
Robert and Vincent Tchenguiz, UK real estate entrepreneurs, issued a joint statement on Wednesday, confirming their detainment. “We were arrested earlier this morning and are being questioned with regard to matters relating to our relationship with Kaupthing Bank,” it reads. “Both of us are co-operating fully with the investigation and are confident that, once concluded, we will be cleared of any allegation of wrongdoing.”
According to The Guardian newspaper, Britain’s Serious Fraud Office has been investigating Kaupthing’s collapse since December 2009. The focus: manipulation prior to the financial crisis in 2008, and relations between the bank and its largest customers. The Tchenguiz brothers were among those customers. The Guardian reports that Robert Tchenguiz held a stake in Kaupthing, plus was a director and shareholder in a holding company that was the bank’s largest shareholder. Furthermore, it states, the bank issued loans to Tchenguiz companies in excess of 40 percent of its own equity base. Icelandic laws were supposed to prevent loans exceeding 25 percent of a bank’s funds. The brothers dispute the loan claims. Both also have lawsuits against Kaupthing liquidators. The Guardian article states that Vincent Tchenguiz cites an Icelandic parliamentary report that suggest Kaupthing acted inappropriately.
The Tchenguizes are now unable to proceed with a party planned onboard Vincent’s yacht. He owns a Mangusta 130 christened Veni, Vidi, Vici, which has been docked in Cannes. The party was concurrent with MIPIM, an annual real-estate trade show. There’s no word on how many people were to attend the party. Veni, Vidi, Vici sleeps 10 in the owner’s party and is run by a crew of eight.
Meanwhile, Robert Tchenguiz also owns a yacht, My Little Violet. Measuring 45.6 meters (150 feet), the yacht was built in 2006 by Abeking & Rasmussen, accommodating 10 guests and 11 crewmembers. My Little Violet has hosted business clients and friends, as well as charter guests.
Neither My Little Violet nor Veni, Vidi, Vici were seized in connection with the arrests.
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