Alexander Ernstberger, former CEO of the pension company Allra, is back in court over allegations involving a luxury villa on Lidingö and a 75 million kronor transaction. The case centers on whether Ernstberger was insolvent at the time of these transactions. Both he and his wife deny any wrongdoing, with the defense citing expert analyses to support their claims.
Alexander Ernstberger Faces Court Over Lidingö Luxury Villa
Alexander Ernstberger Faces Court Over Lidingö Luxury Villa
Alexander Ernstberger appeared in court this morning, facing charges related to 75 million kronor and a luxury villa on Lidingö—a property that has become a curse for the former CEO of the pension company Allra.
"My client denies any wrongdoing," says lawyer Olle Brickstad. The Allra figure risks a new prison sentence if convicted.
Conditionally released after serving a six-year sentence for serious bribery and gross dishonesty against creditors in the "Allra scandal," Alexander Ernstberger returned to the courtroom.
He is growing weary of everything connected to the pension company Allra.
"I am turning the page now that I have written my book. I will not continue to dwell on Allra. I want to move on," he says.
When the trial began at the Stockholm District Court on Thursday morning, he was not the only one accused. However, this time, none of the others from the Allra case were present, but his wife Tina, a lawyer, and an accountant were.
All four denied through their defenders that they were guilty of any criminal activity.
The indictment involves two different transactions outside the Allra process, where in Ernstberger's case, it is classified as gross dishonesty against creditors, alternatively negligence against creditors.
In both cases, the core issue is when Alexander Ernstberger is considered to have become insolvent or when he should have realized he was on the verge of insolvency.
The Uncertainty
Being insolvent means you cannot pay your debts, and it must not be temporary. The question loomed over the trial like a red thread. When the potential insolvency occurred is not entirely clear. According to some, it was as early as May 2012 when the predecessor to Allra incurred a debt to the Pension Authority of nearly 170 million kronor. Another suggested time was in October 2017.
The Luxury Villa on Lidingö
The most notable charge concerns Alexander Ernstberger's luxury villa on Lidingö. On December 3, he transferred half of the property to his future wife as a gift. Two days later, the couple married.
Wife Tina is charged with aiding the alleged crime, and a lawyer for drafting the gift deed. Through her defender Conny Cedermark, Tina Ernstberger denied any wrongdoing. The lawyer who drafted the gift deed also denied through her lawyer that she was guilty of aiding negligence against creditors or negligent assistance.
Prosecutor Markus Hellsten read from the indictment:
"Through the gift and its conditions, Alexander Ernstberger intentionally or at least through gross negligence disposed of property of significant value despite realizing or at least having reasonable grounds to assume he was insolvent or that there was a significant risk of insolvency."
The villa, which the media dubbed "Sweden's most expensive villa purchase in 2016," quickly became a symbol of his luxurious lifestyle despite being heavily mortgaged with the help of accommodating bank employees at Ålandsbanken in Stockholm.
The purchase price was 50 million kronor.
In his book "The State vs. Capital," Ernstberger writes:
"I know the image of me that has been broadcast in large headlines has been that I was the ultimate playboy, the perfect white-collar criminal, the guy who bought Sweden's most expensive villa with money he had stolen from pensioners. That I got what I deserved."
For Ernstberger, it was a brutal awakening when police and technicians from the Economic Crime Authority, EBM, entered the luxury villa on the morning of October 10, 2017.
"At half-past seven in the morning, I was abruptly awakened by a hard pounding on the door as if someone was about to break in. I jumped out of bed. Maybe the neighbor's house was on fire? I peeked through the blinds next to the front door and saw several people in black clothes and yellow vests," writes Alexander Ernstberger in his own book.
The second charge concerns a 75 million kronor dividend that Alexander Ernstberger made from his private company S2 Invest a few weeks after the district court's acquittal. Here, his then-accountant in the company is charged with aiding negligence against creditors, alternatively negligent assistance.
The central question in both cases is whether Alexander Ernstberger was insolvent or should have realized he was on the verge of insolvency when the transactions were carried out.
Ernstberger's defender, lawyer Olle Brickstad, presented various circumstances that he believed showed his client had sought help from several experts before finding that it was green light for both the gift deed for the villa and the 75 million kronor dividend.
The Analysis That Could Exonerate Ernstberger
The defense cited, among other things, an analysis conducted by a former judge in the Stockholm District Court who studied the circumstances surrounding the charges. He found in his statement that Alexander Ernstberger was not insolvent at the time of the events in question.
"He is no novice when it comes to insolvency law. He has served as a judge for over 20 years," said Olle Brickstad, also listing several of the judge's merits in insolvency law.
If convicted, Alexander Ernstberger could face a maximum of two years in prison.
The trial is scheduled to last three days.