Nine men and one legal representative are accused of being involved in a scam in which Landsbanki Luxembourg offered French property owners loans, in exchange for which they pledged their homes.

Customers received part of the loan in cash, while the bank converted the remainder into investments, whose return was supposed to cover the interest.

The Luxembourg subsidiary was liquidated when the Icelandic government decided to nationalise Landsbanki on 7 October, 2008.

Customers were entitled to a full refund; however, they have only received part of the funds. Many have been threatened with losing their mortgaged properties.

Around 100 civil parties launched the proceedings, saying that Landsbanki knowingly deceived them about the bank’s strength and the risks of the financial arrangement.