Police officer suspended amid espionage allegations tied to 2012 Landsbanki case

A traffic warden with the Reykjavík Metropolitan Police has been relieved of duty after evidence emerged suggesting he engaged in espionage for payment while on the job. The state prosecutor is investigating the case, which dates back to 2012.

According to RÚV , the officer was caught surveilling individuals at their homes and workplaces and gathering personal information — all while on active police duty.

Surveillance allegedly financed by business magnate

The case is linked to allegations that billionaire Björgólfur Thor Björgólfsson financed a private surveillance operation targeting individuals involved in a lawsuit stemming from the 2008 collapse of Landsbanki, where he was the largest shareholder. He allegedly sought to determine whether businessman Róbert Wessman was behind the class action lawsuit.

This information came to light in the investigative news program Kveikur , which aired yesterday on RÚV. The report cites audio recordings and documents indicating that Björgólfsson's close associate, lawyer Birgir Már Ragnarsson, acted as an intermediary with a private security firm, PPPSF.

Former police officers behind the spy operation

PPPSF, the firm behind the surveillance, was founded by former police officers Jón Óttar Ólafsson, a criminologist, and Guðmundur Haukur Gunnarsson, a lawyer. Both were previously employed by the Office of the Special Prosecutor. They were once accused of selling stolen data from that office to a bankruptcy estate, but the charges were dropped.

Recordings show the firm tracked former Landsbanki shareholders from September to December 2012. Surveillance included hidden cameras and audio devices, with attempts made to photograph Róbert Wessman with people connected to the lawsuit. Wessman’s movements, including his children’s medical visits, were reportedly documented.

The Reykjavík officer, Lúðvík Kristinsson, is alleged to have contributed significantly to the operation, logging approximately 60 hours of surveillance while officially on police duty.

Politicians and lawyers among surveillance targets

The espionage operation focused on high-profile individuals, including future MP Vilhjálmur Bjarnason, lawyer Ólafur Kristinsson, and Supreme Court attorney Jóhannes Bjarni Björnsson.

A recording from the Novator offices — linked to Björgólfsson — reportedly confirms Birgir Már Ragnarsson as the one who brokered the deal with PPPSF. According to Kveikur , the firm logged about 850 hours of surveillance in just three months.