Jon Asgeir Johannesson, the former boss of Baugur, which held stakes in retailers including House of Fraser, Hamleys and Oasis, has been convicted of tax evasion by Iceland’s Supreme Court.
Johannesson, his sister Kristin Johannesdottir and their former co-worker Tryggvi Jonsson were convicted of tax evasion amounting to $2.4m (£1.5m) from 1998 to 2003.
The court handed Johannesson, who used to be one of the most powerful men in British retail, a 12-month suspended sentence and a fine of 62m krona (£312,000).
Baugur filed for bankruptcy in March 2009 with debts of more than £1bn.
The court found Johannesson had deliberately filed erroneous tax returns on earnings of 172m crowns. He was also convicted on several counts of tax irregularities related to Baugur’s activities.