The legal processes around fund provider Allra, which saw its funds effectively seized by a government agency earlier this year on fears that investors had been fleeced, has taken another turn this week with confirmation from the prosecution service that yet another person has been arrested over the matter.
On 14 February this year the Swedish Pensions Agency announced that it had put a stop on all purchases of Allra’s four funds available on the PPM system. At that time it said some 130,000 long term savers had put SEK19bn (€2bn) into the funds.
According to Swedish wire service TT, district prosecutor Thomas Hertz, who is leading the ongoing investigation, has not confirmed the identities of either the latest person to be arrested or previously arrested, but has until Friday 13 October to decide whether to push for prosecution via one of Sweden’s 48 District Courts.
However, TT also reported that the Stockholm District Court has already moved to implement a lien of SEK242m against one person linked to the case. The prosecutor has also seized SEK140m, profits that Allra had in its Dubai-based subsidiary operations.
On 5 May, Ålandsbanken Fondbolag took over management of Allra’s funds on the PPM platform. In a statement, the manager said that over time, investors and their assets would be transferred to similar existing funds offered by Ålandsbanken.
Further complicating matters, one of Allra’s former board members Thomas Bodström was announced in August this year as the new governor and head of the County Administrative Board for the county of Stockholm. He is meant to start his role on 1 November for a term of six years. However, it has come to light that when part of Allra’s board, the former minister for Justice added his name to a document that authorised additional payments to the owners of Allra. Swedish newspaper Expressen has reported that the additional payments amounted to SEK20m, which were linked to the subsidiary in Dubai. A number of opposition politicians have reacted to the news by stating that the Swedish government should either reverse or delay Bodström’s appointment.