December 19, 2018 / 8:13 AM / 2 months ago

UPDATE 1-Danske ex-CEO Borgen sets up management consultancy

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COPENHAGEN, Dec 19 (Reuters) - Thomas Borgen, who in September quit as chief executive of Danske Bank over a money laundering scandal, has set up a management consultancy firm in Denmark, public records show.

Borgen was head of Danske Bank from 2013 until September this year, when he admitted that the bank’s Estonian branch helped funnel hundreds of billions of euros from countries such as Russia over more than eight years.

The new firm, simply named Borgen, was set up on Dec. 1 as a one-man business.

Borgen could not be reached for immediate comment. He confirmed the news to online media Finans.dk but said the firm currently had no activities.

Danske Bank has yet to choose a permanent replacement for Borgen.

The threat of a heavy fine from the U.S. Department of Justice, which is investigating the scandal alongside Danish, Estonian and British authorities, has sent Danske’s shares plunging almost 50 percent since March, erasing around $15 billion of market value.

The Danish state prosecutor said last month it is seeking to clarify whether it can pursue criminal charges against Danske Bank or whether individuals can be held responsible.

Estonia’s state prosecutor said on Wednesday it has detained 10 people in relation to a money laundering scandal linked to Danske.

$1 = 0.8772 euros Reporting by Jacob Gronholt-Pedersen, editing by Louise Heavens

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