Baugur chief heard charges
Jón Ásgier Jóhannesson (pictured) was arraigned in a Reykjavik court yesterday. He denied all charges laid against him.

Jóhannesson's defence said the charges levied against him and five other defendants related to transactions amounting to£26 million. The most serious charge the Baugur chief faces is embezzlement, which could mean a jail term of as much as six years, according to press reports.

The case is the biggest in the country for a decade and could set precedents on the way in which other Icelandic companies do business in the future.

The court set the next hearing for October 20. It is believed that the trial could last as long as two years.

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