Investment company and former CEO acquitted on charges of stock manipulation

A Danish city court has found listed Smallcap Danmark, its subsidiary company, Porteføljeselskab, and former CEO Jens Erik Høst not guilty of stock manipulation.

The atmosphere is presumably one of relief at investment company Smallcap Denmark, its subsidiary company Porteføljeselskab A/S, and former CEO Jens Erik Høst.

Last Tuesday afternoon by order of the Copenhagen City Court, all three were acquitted on charges of stock manipulation brought by the Danish Attorney General's office for fraud and economic crimes – generally known as the Danish Fraud Squad.

Smallcap announced the acquittal in a corporate statement. Ahead of the ruling, the company had asked the stock exchange to suspend trading in the shares. The Copenhagen City Court has yet to announce the ruling itself.

The corporate statement says that Smallcap Denmark, subsidiary Porteføljeselskab A/S and former CEO Jens Erik Høst have been acquitted on all charges.

The Danish Fraud Squad had accused Jens Erik Høst of stock manipulation under aggravating circumstances in relation to stock trading in carpet manufacturer Egetæpper and plastics manufacturer Rias during 2009-2010, and of serious breach of fiduciary duty. The prosecutor had demanded both a fine and a prison sentence.

The prosecuting authority now has two weeks to decide if it wants to appeal the decision.

Jens Erik Høst founded Smallcap Danmark A/S in 2000, but retired in 2014 at age 67.

English Edit: Marie Honoré

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