Three people in Saab's management arrested and suspected of tax evasion

[nordwulf]

From Sveriges Radio:

It continues to storm around Saab Automobile even though the company went bankrupt. For yesterday arrested former Saab CEO Jan-Ake Jonsson, CFO Karl G. Lindstrom and General Counsel Kristina Geers. They are all on probable cause suspected of serious evasion of tax for the period 2010 and 2011.


Police suspect three former Saab Automobile executives of tax evasion, reports Swedish Radio Väst. Vänersborg district court has confirmed that one of them is former CEO Jan-Åke Jonsson, reports news agency TT. All three were arrested after they were taken in for questioning, two in Gothenburg in western Sweden and one in Lund in the south.

They are suspected on the basis of probable cause, the prosecutor told Swedish Radio. He declined to provide any further details of the allegations, but said that if found guilty, the former executives could face between six months and four years in prison.

Asked by TT if the men had tried to cheat on their taxes, prosecutor Olof Sahlgren replied:

"Yes, you could say that. They have tried to hide certain things from the Tax Agency. How it has happened and why, I will keep to myself for now."

From TTELA:

These are people who on probable cause suspected of grossly aggravating of control, which simply translates as tax evasion. Two people were already arrested on Monday afternoon when a second person was taken in for questioning. Two of the suspects was picked up in Gothenburg, one in Lund, according to TT.

Pickup decision was taken by Chief Prosecutor Olof Sahlgren holding the inquiry. - The three people we want to hear what they have to say to each other. Who they are, I would not comment, nor how they set themselves to the crime they are accused of, say Sahlgren to TTELA.

Somewhat later, however Vänersborg asks for public defender where it became clear that one of the suspects is Saab's former General Counsel Kristina Geers. TTELA can now confirm that she has been arrested on suspicion of crime. Geers denies all allegations.

Notification of crime comes from the Tax Office, confirms Sahlgren, as early as November last year could tell TTELA that since May, investigated a Saab Case, reported from just Tax Board, and that the investigation falls within the legislated limits. More specific Sahlgren could not be then. Exactly what the suspects engaged to the chief prosecutor did not disclose, but there should be measures made ​​in the accounts, which must have had serious consequences for Tax calculations.

Time at which the crimes have occurred were somewhat turbulent for Saab Automobile's part, including stopped shipments and loss of wages due to lack of funds. According to Håkan Skött, formerly IF Metall chairman of Saab Automobile, the economic crimes allegations as a complete surprise. - I have no comment because I do not know more than what you read in the media, and I have not received any indication that this would happen, he says to TTELA.

From Saab Automobile konkursbos page confirms that the matter is not within their frames. Ni 've said before that you do not discovered any crime in your investigation reported to prosecutors. Is the situation the same now? - We did not do it, no, says Anne-Marie Pouteaux to TTELA. During most of 2010 and 2011 were Saab Automobile to Spyker and Victor Muller's possession. According to confirmed sources of TTELA should not Muller to be one of the other two suspects.

Tre från Saab-ledningen misstänks för ekobrott - Saab - www.ttela.se

[tunnanxwd]

I have to wonder if the statute of limitations was ticking away (as it always is) and wonder what it is is Sweden. Also, this does not shock me. Back, during "The Troubles" as the Irish would call them, I remember commenting on Jan Ake's short tenure as Chairman and wondered if he was informed of some things that made him want to distance himself.

My gut prediction; (or hopes because I was really liked him), he did not request a lawyer and will perhaps help to unravel the madness. "Tim" from SU indicated that his inside track says that's it's a huge amount of money and there are two lines of investigation. Hmmmm, perhaps the bonus and consulting monies and the EIB spending of what were marked as "research funds"?

All the moaning about violation of "due process", geez, this is how due process is supposed to work. It sure beats tricking someone into making statements without the benefit of legal counsel. Prosecutors usually really put the fire on the investigators and you get beat up very badly when you try to justify a case. Really, first the prosecuting attorney will put the investigators on "trial" and even separate them to ensure as best they can that it's justified and not rehearsed. Here in the US it's not the hand in glove relationship that many perceive because the track record of that lawyer is also going to scrutinized for the duration of their career (and private practice reputation later), if they are sending spurious cases before the court. Besides then a "true bill" has to be rendered. That is due process and it's not a walk on the beach for either party.

Regarding was was said about Muller, well, that is possible, until this broke, I was not aware that he had a prior conviction for insider trading and paid a fine of about 96,000 Euros. Generally, if someone agrees to a fine, that is really (at least here in civil complaints), a sign that the courts were tied up and there was a lot more at stake. Often to the dismay of the investigators, the prosecuting attorney will just swing a fast and easy deal to ease the workload. It's some consolation to a team that works so hard to put together the "connection of the dots", but it's just reality and you bite the bullet, shrug and move on. Just a guess of course since there were no facts other than the brief statement.

[nordwulf]

Whatever happened or did not happen, this is just one more thing that doesn't look good on Saab's history. Everything seemed all great with the company until 2010 when it all went to hell. GM screwed some things up but at least they were a big company with deep pockets.

They searched the offices of Saab in Trollhattan and Spyker in the Netherlands. All this can't be good for the brand. I imagine it can't be good for NEVS either. Even though they are not Saab, the brand suffered enough already. But not many people care anymore, I assume..

[nordwulf]

It looks like it has mostly to do with the EUR 690.000 Muller was paid as a management fee which he moved through a company in the Netherlands Antilles. That's all?

Muller prime suspect in the Saab tangle

Apple has been doing the double-Irish with a Dutch sandwich dance for a long time to avoid paying taxes in the US. IKEA is based in the Netherlands to avoid paying taxes in Sweden. And consumers have been 'forgetting' to claim internet purchases on their tax return so they don't have to pay their state's sales tax. Everybody is doing it!

[tunnanxwd]

And "every freighter and liner" were of Liberian registry weren't they. Of course withe the rash of incidents things are catching up and laws modified. Here in New Jersey almost every yacht past 28' was registered in Wilimngton Delaware, because they didn't collect taxes on the sale and the registration was cheap. When I got my 23' small cabin boat I was amazed that all those Delaware people came here to summer when it's nicer there? The law changed, ,my cousin got cuffed (he declared his Viking's $300,000 value as $300. Too bad!

[tunnanxwd]

Hmmmmmm? "The Fifth Man", that sounds like it was right out of the British spy scandal that plagued the Ministry of Intelligence. Sir Roger Hollis and many of the top folks in favor with the Queen turned out to be Soviet spies. I wonder if once more there is a Russian Connection here?

[nordwulf]

This seems to be the core of the problem.

According to the files and the Stockholm paper, some $540,000 were invoiced by Muller’s tugboat company in the tax haven. The prosecutor thinks Saab’s management should have paid taxes and social security contributions on Muller’s compensation. Invoices from entities in tax havens are a favorite tool for tax avoidance.

Tax Saabotage: Victor Muller Named As Suspect | The Truth About Cars

They throw people in jail for that? I thought Sweden was such a nice and liberal country..

And from Automotive News Europe. Muller says Saab period was painful

Asked whether he regretted anything about his time at Saab, Muller declined to comment, saying he's now completely focused on Spyker's future. He said: "It's simply too painful to look back. I had my mourning period and I'm moving on."

I'll drink to that. It's time to move on and leave the past behind.

[tunnanxwd]

I can't agree with that concept. The money a wealthy person does not pay into a system but gets a free ride is money that we of the lower classes have to pay for the defense and social welfare budgets. It is a theft from the taxpayer. Sadly many of us are "starstruck" with charismatic "Pied Pipers" who preach a good sermon. He learned well from the "Ronald Reganesque" changes to the US tax codes that inspired a decade of corporate raiders and they have bankrupted many solvent companies (Saab was not sadly but that is worse). I could never justify a bonus while I was not paying the suppliers, employees or the EIB loans much less the sleight of hand by sending monies off shore.

I can't justify a theft from government, a large or small corporation, or and individual. At the point of a gun or the point of a sharp pen. He was convicted before and paid a $96,000 fine for insider trading. Martha Stewart, for insider trading or Al Capone for tax evasion or how about "Bernie Madoff" or Crazy Eddie Antar?

[Dave T]

I wonder what happened to those arrested people?