Royal Crisis (Lyngaard)
The Royal Crisis (Nørdspråg: Kongelig Krise) was a major Political Crisis in Lyngaard that lasted from 1961 until 1967. The cuase of the crisis was the revelation of Prince Hans Erik's involvement with the Far-Right Kultur og Tradition group. The group had been implicated in several Anti-Immigrant, Anti-Communist, and Anti-Union attacks since the mid 1940's. The media scrutiny placed on Prince Hans Erik also helped to uncover illegal banking praticies he was involved in as a board member of Kongelig Investeringsbank. This would come to a head when bank official and co-conspirator Rasmus Mortensen was found dead, hung at the Sort Munk Bridge in 1966. Several members of both Kultur og Tradition and the Royal Investment Bank were implicated in the killing. Victories for the Socialist Labor Party of Lyngaard in 1963 and again in 1967 would eventually force Hans Erik to abdicate his claim, making the way for his Cousin King Gustav Fredrik II to be elected king by the Regency Council in 1967.
Background
Monarchy and the Constitution
Since the End of the Second Lyngaardian Civil War the monarchy had been left as a ceremonial Head of State. While the Republicans were defeated, Republicanism remained a prominent political trend. Culminating in the Grand Compromise that allowed for the passage of the 1890 Lyngaardian Constitution. The Monarchy had transitioned into a symbolic and ostensibly apolitical institution which gave political power to the Lundsthing. The constitution expressly limited the political influence the monarchy would have. The monarchy could no longer endorse candidates, it could no longer vocally endorse or criticize government policy, nore could it talk to politicians without it happening within an open forum.
One thing that the 1890 Constitution formalized was the existence of the Regency Council. Traditionally an ad hoc assembly of the Royal Family, Church Bishops, The Army, and invited guests. The Regency Council would advise the Royal Family on who should succeed the king at the onset of their death. With the 1890 Constitution established the Regency Council as the body who would elect via 2/3rds majority the Monarch after the Death or Abdication of the previous Monarch. a total of 30 seats. 15 seats are appointed by the Monarch, 5 seats are occupied by Bishops of the Church, 3 Seats for the Military, 3 Seats for representatives of the Royal Bank of Lyngaard, and 4 Seats elected by popular vote for life terms.
The constitution also stipulates that the Lundsthing has the power to Veto the Election of a Monarch by the regency Council, however that was considered more a formality, with the Lundsthing never attempting to block a vote from the Regency Council until 1962.
Prince Hans Erik
Prince Hans Erik was the oldest son of King Christian Magnus X and generally seen as his fathers natural successor. Educated at the St. Hilda School in Fyrhøgh he went on to university at Lyndholm where he graduated with degrees in Classical Studies, and Strategic Financial Management. He then went on to work for Voss Bank where he rose quickly in the corporate leadership. He was noted for his reserved and diplomatic personality. Scott F. Albaugh, CFO of Voss Bank, would describe Hans Erik as "Someone who listen to you one on one for hours, and asks deeper questions as you go along. He could also give a poetic speech about anything to a whole conference hall. but he struggled to entertain in groups, he would simply melt into the background."
Hans Erik would be given a position at the newly established Royal Investment Bank of Lyngaard in 1956. Something he personally had advocated for, speaking to the Lundsthing on multiple occasions about the value of such an institution. He would be placed on the board of the Investment Bank and would be tasked with investing a large portion of the Royal Family's assets into various Holding Companies and Assets. Upon the death of his Father in 1961 Hans Erik would become the primary candidate to succeed his father, as per his own wishes at the time of his death on April 3rd 1961.
KIB Investment Fraud and Money Laundering
From june 2nd 1959 until March 8th of 1961 reporters from Providence Times, particularly Mary Ann LaMay, and Robert Irving Rowe would investigate claims brought up by an anonymous source from 1957. These reporters had uncovered that nearly $50 Million in assets belonging to the Lyngaardian Royal Family had been placed in stocks held by Voss Bank via trading between them and the Royal Investment Bank. According to them this effectively prevented any financial oversight of lyngaardian financial assets from being under the authority of Lyngaardian legal authority. Accruing interest and sell offs would be nontaxable or would face very little taxation if wired to a Lyngaardian bank account. Funds would then be transferred from those accounts to various anonymous accounts from within the Voss Bank System. meaning that one could access money through a Voss Bank branch in Lyngaard but not be subject to Lyngaardian finance law because the money and account would all be located within Arcadia. It is assumed that from 1957 up to 1961, the accounts affiliated with the Royal Family Assets had made roughly $43 Million based on interest and trade.
The report published on March 10th 1961 would name several KIB members as involved in the scandal. The team was able to name KIB Head Risk Management Officer Rasmus Mortensen, based on financial trades he made in order to buy a third home in Vangsødrup, which was subject to public release upon request via the Municipal Transparency Act. After his arrest multiple other KIB workers would be arrested by the Royal Constabulary, including CFO Markus Bohr, and Chairmen Augustus Callisen, Thorvald Braae, Frederik Henning, and Bergnart fra Langstenvik. A police Investigation and Reporting from the Providence Times would show that nearly $1 Million made from an account with nearly $5.2 Million in Royal Assets was sent to Ulysse Ngenyo, who was known to be a finance adviser in Vailleux who had close ties to Asemese Military Officer Cléas Twe. From testimonies by Callisen and Henning it was also revealed that nearly $100 Million Dollars (roughly $990,000,000 when adjusted for inflation) was held in Arcadian accounts, mostly tied up with KIB holdings and Royal Family Assets. The money was used to not only enrich members of the KIB Board but also to fund political activities abroad.
Prince Hans Erik would also be implicated as holding and personally handling accounts which would be involved in sending money abroad. He was also accused of personally benefiting from this fraud, with nearly 900,000 (~$8,900,000 adjusted for inflation) being wired from an anonymous Aradian account implicated in the scandal to a Voss Bank account associated with Prince Hans Erik since the same account was used to pay for expenses relating to a youth athletic center Hans Erik had sponsored. However the Royal Constabulary had declined to arrest him, stating the evidence against him was "spotty at best". However after the Death of King Christian Magnus X, the Regency Council would hold its own investigation into the matter. Lord Regent Jens Immanuel Fåborg would halt Council Hearing on 4th, establishing the Council Hearing on the Voss-KIB Scandal on April 6th. The council would subpeona nearly four dozen individuals named in both police and journalistic reports.
Arrest of Rasmus Mortensen and KoT Outtings
Rasmus Mortensen would be arrested on March 30th, Royal Constables would flank his residence in Fyrhøgh's Palisander Parkere Neighbourhood. In his residence Constables would find nearly 40,000 pages of finance documents related to his work at both TriMark Financial, R.A.B & T Investment Group and the Royal Investment Bank. They would also collect about 10,000 pages of personal paperwork. Constabulary officers would attempt to hold Mortensen in prison, however on the 8th of April a judge granted him house arrest while his investigation was ongoing.
of the 10,000 pages of personal documents, most pertained to personal finances and letters to and from other business partners. During the initial runthrough of the documents, officer Jens Henning would stumble across a list of names, with the title "Active Members of the KoT Oversight Committee". This list included Mortensen himself, Bankers David Amalberti, Knut Salomonsen, Industrialist Markus Ibsen, Businessman Christian Schønberg, and Frans Gehl. the list also named members of the royal family Christoffer, Duke of Bygekyrkje, and Prince Hans Erik.
The list would go unnoticed from April 9th, all the way until September 18th. When the papers were passed off to evidence processing. It was here that Officer Claude Erlang would review the papers. Erlang would recognize the name as shorthand for Kultur og Tradition, a Far-Right, Royalist, Anti-Immigrant, Anti-Femisnist and Anti-Union political organization founded by former Soldier and Constable Wilhelm Luther Stenbrønd in 1947. The group had been known to police, specificially for the Dockman Shootings, Hederækken Attacks, and the murders of William Ulysses Johnson, Jean-René Yeboah, and Afsoon Akbarzadeh. When Erlang presented the document to his commanding officer Sergeant Bengt Tromborg he refused to bring it into evidence. According to Erlang, Tromborg felt that they could not reasonably bring the document into evidence as it did not relate to any financial dealings. Erlang would take the document with him, along with several personal letters from Mortensen to the various people mentioned in the list.
Erlang would use the Constabulary Headquarder's brand new Photocopier to make several dozen copies of all documents. However Erlang, fearing reprisal, would hold onto the documents until January 4th 1962. During that time Erland submitted his resignation from the Constabulary and went on to work for a private security company. Erlang would mail his copies of the letters and the KoT list to every major Newspaper and Television Station in the country. The first paper to report on his evidence was Arbejdsdagligt, the official Newspaper of the Lyngaardian Section of the Workers International League on January 6th. Reporter Søren Bendtner would then be the first to present the revelations to a national television audience on January 8th.
The revelation that the Prince had some connections to a far-right political group was shocking to the normally tame national political scene in the country. Labour Unions would organize strikes and all parts of the Populær Front would organize protests both at the royal palace and at Grønkjærholm Estate where the Regency Council meets. These protests would go on to include Socialist Labour, the only Left-of-Center party not involved in the Populær Front. With Leader Nicolaj Dinesen approving and attending several strikes and protests. Prince Hans Erik would initially not comment on the matter. however on February 17th he would give a statement to the public on the matter. Famously saying "These allegations are based purely in fantasy. There are those who want to relitigate the past, fight battles they've already lost. They do not have the moral standing or the political support to do so, and thus they slander and defame."
Political Fight and Regency
As the case unfolded in the public eye, the Regency Councils Hearing on what was being called the Voss Affair came to an end. The Council on a vote refused to bring into evidence anything pertaining to the Kulture og Tradition findings uncovered as part of the police investigation. The Council would release the Reenberg Report on , authored by Major General Jan Olaf Reenberg who co-chaired the hearings in the council. In the report the Council found several incidents of "Moral Lapse" on the part of Prince Hans Erik. However the report said that it did not find any evidence that Hans Erik acted in a way which would forfeit his right to the monarchy. on February 6th the Regency Council would hold a new hearing, this time a questioning and cross-examination of Prince Hans Erik.
Hans Erik would sit for 10 Hours of Questioning from Members of the Regency Council and Representatives from the Ministry of Justice, Attorneys David Køhlert, and Astrid Reedtz. Hans Erik would answer most of the questions presented to him. However, a question asked by Lord Bishop Dagmar Lundstrøm asked Hans Erik ``Do you hold any accounts with Voss Bank or any other institution. that would put you in a position of privilege as compared to your average countryman; and would said accounts hold assets that belong to the Royal Family and thus be under the jurisdiction of Lyngaardian Monetary Regulators and Overseers?". Hans Erik would decline to answer the question, requesting his right to not speak against himself. This would be televised as well as broadcasted over radio. The moment became known as the Unanswered Truth (Ubesvaret sandhed), Protests would go through the streets chanting "Fortæl os Hvad vi Allerede Ved!" (Tell Us What We Already Know).
on February 19th, the Regency Council would hold its final vote on selecting its new Monarch. In a 20-10 vote the Regency Council would elect Prince Hans Erik to be the new Monarch. the Dissenters would issue a statement, authored by Lord Bishop Dagmar Lundstrøm would state "It is an affront to the church that it may be led by a man who does not agree to core stipulations of faith. A man who steals money from his subjects to enrich himself, a man who does not hold those made in our shared creator's image as equal is not a man who should occupy the highest authority of the church. I fear that if Hans Erik takes the mantle of the Churches Highest Command we will see a rift form, and a rejection of the church as it exists today."
The April 7th Coalition
With the vote in Support of Prince Hans Erik's ascension to the throne from the Regency Council, the Act of Royal Ascent would be passed to the Lundsthing for approval. On February 20th the Lundthing would hold a debate on the passage of the Royal Ascent. since the 1959 Lyngaardian General Election a Conservative coalition centered around the Christian Democrats and its leader Prime Minister Willy Mølsted held a majority, but was reduced by a strong showing from the Socialist Labour Party of Lyngaard led by Nicolaj Dinesen as well as the broad leftist Populær Front led by Sigurd Søndergaard. Mølsted's coalition would hold a slim majority of 81 seats, and while the vote had been divisive it was believed by commentators at the time that the vote to approve the Act of Royal Ascent would pass along coalition lines.
While the Parliamentarian of the Lundsthing had moved to keep evidence of Hans Erik's ties to the Far Right out of the debate, Member of the National Indiginous Labour Movement Povl Såganasj would bring the documents into debate during a filibuster attempt. While the evidence was known to all since it was being discussed in the media, it helped to show the combative nature the hearing would go through. from February 20th until April 6th the Lundsthing would hold debate on the issue. During this time a faction within the Christian Democrats would form who openly felt that Prince Hans Erik was not fit to stand as monarch. These so-called Free Democrats would hold up debate within the coalition which had initially agreed to go through with the passing of the act without debate. A final vote would be organized on April 8th 1962. The final vote was 96-59 Against Approval of the Act of Royal Ascent with 22 members of the Christian Democrats, nearly half its caucus, voting against the act. This would cause the coalition to fall later that month as members retracted their support, angered by Willy Mølsted's inability to command his own party. Mølsted would resign on May 2nd as a new election was called.
On May 2nd The Christian Democrats would hold its party eide leadership election, the main candidate were Carl-Henning Melsing, the former chair of the parties treasurer and Member of the Lundsthing from Nyborg and Mads Christiansen, the former Minister of Indiginous Affairs. Melsing would represent the Anti-Hansist faction of the Christian Democrats, while Christiansen would represent the Pro-Hansist faction. Melsing would pull out a narrow victory, at 47%-45% against Christiansen.
The Socialist Labour Party and the Christian Democrats under Melsing would form the unofficial April 7th Coalition, an impromptu agreement between the leaders of the parties to not pass the Act of Royal Ascent, Melsing would agree to elect and support Anti-Ascent politicians to leadership positions in the Lundsthing, however they would be able to vote independently of other issues and legislation.
Regency Councils Rule
with the Lundsthing rejecting the Regency Coouncils vote, the Lord Regent Jens Immanuel Fåborg would fill in as Regent. Hans Erik would continue to campaign across the country, hoping that a charm offensive would sway voters into supporting Pro-Ascent political parties. Fåborg for his part would take on the duties expected of a Monarch until the political impass was settled. His first act was to preside over the Electoral Commission, but with Fåborg being seen as a Hansist sympathizer his role was reduced when the Lundsthing held appoitments for the electoral commission and was able to push through several anti-ascentist officials into the commission, hoping to wrestle power away from Fåborg.
Between May 8th and July 3rd Fåborg and Dinesen would wrestle over the role of the Regency Council in the daily governing affairs. Dinesen had come out as the most powerful player in the Lundsthing who weilded a strong pre-election coalition. With threat of Resignation of the Elected Regents and members of the Church within the Regency council on the 3rd of July Fåborg would stand down in hopes that the new election would break Dinesen's hold on power.
1963 Elections
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Dinesen-Melsing Agreement
Street Politics
Tjehåtjen Mæpuketje Band Standoff
By the end of August polling had shown a lead for the Socialist Labour Party, With its strongest polling in the Indeginous Trust Lands in the north. As part of his Campaign on behalf of the conservatives Prince Hans Erik planned a speech in the largest city in the Trust Lands, Tjehåtjen. Prince Hans Erik and Christian Democrat Election coordinator Julia Voight planned to hold a televised speech with a staged audience to make the Conservatives look and sound more popular in the north and attempt to influence Swing Voters or flip fair-weather voters for the Socialist Labour Party.
The Local Band Government of the wider Mæpuketje District refused to give the organizers license to perform in the city. However The Ministry of Indiginous Affairs headed by National Conservative Ellio d'Acquaviva would force the approval through without the consent of the local government. Prince Hans Erik and Several Politicians and media personalities would arrive at the Benneweis Airfield where an open air rally would take place.
Upon arrival via helicopter, Hans Erik would be met with several dozen armed protestors from the Mæpuketje Band of the Nøjibweh Nation. led by local activists Jens Tjutji-Asåvesjkva. The locals were armed with hunting rifles and or blunt objects. The Mæpuketje would protest outside the venue overnight, intimidating any locals who intended to or who in many cases were paid to attend the rally away. the event would be delayed by Two Days in the hopes that the Royal Indigenous Police (KIP) could contain the situation. The KIP would hold a line 100 meters outside the venue and would stand off with armed protestors from September 8th until the 10th.
Prince Hans Erik would give his speech at the rally. However, during the televised speech a small gun fight broke out between KIP officers and locals. Stemming from a KIP officer shooting a protestors dog after the Dog had gotten too close to the officers. The protestors shot back and using pickup trucks would break the police line. Armed Protests would then infiltrate Benneweis Airfield, chanting and cheering over Prince Hans Erik's speech, ultimately forcing him to cut the speech and leave the venue with a security detail. Jens Tjutji-Asåvesjkva would then use the stage to explain why his people had protested, Claiming the government usurped their right to self governance in order to pull off an election stunt. also stating that so long as the monarchy allows for an "Openly Racist member of its family to hold power" that the Trust Lands would not be safe for the Monarchy or its supporters. While Some News Channels cut right before Prince Hans Erik had vacated the stage, some like Kanal 9 would not cut and even broadcast Tjutji-Asåvesjkva speech against the monarchy.
The Incident was seen as an embarrassment and an indignation on the embattled monarch. It led to a sharp decline in his approval rating and correlated with a slight bump in support for Socialist Labour and the Popular Front. Seen as part of the reason for Socialist Labour's victory in the General Election later that November.
The Braae Affair
With the victory of the Socialist Labour Party and the appointment of Rudolph Købke Rosenkrantz the Ministry of Justice more agressively tackled several open cases related to the KIB Fraud Scandal. In this case they were looking to form a stronger case against the KIB Board for future prosecution. Thorvald Braae was still in custody awaiting trial for Banking Fraud, Wire Fraud, and Money Laundering. While Reviewing documents related to Braae's Wire Fraud Case they came across documents relating to possible Bank Documents relating to earlier Voss Bank transactions. These documents however were located at a vacation property in Warren, Federal Union of Arcadia. Rosenkrantz would request the Arcadian Federal Police raid the residence, however the Federal Police denied Lyngaardian officials the ability to obtain said documents. Rosenkrantz would not touch the issue afterwards, rather he authorized other officials to explore other avenues in investigating the case.
The Case would fall to the Lyngaardian Tax Authority. under Executive Vagn Mæhle the for a year until 1964. Some of the cases in the KIB case were going cold as evidence to tie verious members to the bulk of the bank fraud was not substansial enough. Mæhle would organize something called Operation Blue Heron, an attempt to accuire the Braae Documents. Members of the Royal Tax Authority Police would undercover make there way to Warren, setting up shop at a rental property near the wealthy neighbourhood of Vinegrove. Over the next 3 weeks they would case the home, and would then dress up as grounds keepers s to not arouse suspision from the neighbours. The Police would confiscate nearly 170,000 pages of documents. which would be transfered to the Consulate General where they were then sent to a Royal Tax Authority field station in Regnhavn via Radio Fax.
Held in the documents were several financial documents relating to Braae's financial dealing with both KIB and Voss Bank. A document labeled "Asset Transfer & Dealings" would blow the KIB scandal wide open. within was a list of domestic and foreign financiers whom the group Kultur og Tradition had worked with in the past, established the use of Royal Assets to finance foreign groups, as well as use of Royal Assets to finance domestic propiganda designed to delegitamize left-of-center political organizations. The Document directly tied Prince Hans Eric to the case of nearly a transfer of $750,000 (over 6.8 million adjusted for inflation) to Felix Abloh, a Asemese-Vaillais financier with ties to Cléas Twe and Blaise Jeannot Blé, who were know Anti-Communist agitators as indicated by the document. This would be facilitated by a Lyngaardian Banker and named KoT member Rigmor Dahlerup. This Document would not only tie together the seperate KoT and KIB scandals but would expand their scopes from simple Money Laundering and Tax evasion into a planned illicite finnacing campaign on the part of KoT members who had near unanimous control of the KIB's board.
Arrest of Rigmor Dahlerup
Rigmor Dahlerup was a Lyngaardian Banker and Financier who worked at many establishments like Voss Bank, Union Group, R.A.B & T Investment Group, and others. But between 1959 and 1964 he worked at a small transnational holding company called Magnussen, Pålsen, and Ammitzboll Trading and Holding Group. He had according to prosecutors helped to transfer funds from Voss Bank accounds holding KIB assets to Vaillias intermediaries, who could then pass the money to groups and individuals.
Dahlerup would attempt to escape arrest, Abandoning his Townhouse in Fyrhøgh, making his way to a vacation home on the countries northern coast. in the interim he would stay at the Schou International Hotel in northern Fyrhøgh under an allies. Afterwards the staff noticed a minor indescrepency in his identification and called the police. The police would show up and attempt to enter his hotel room, Dahlerup would attempt to escape via the 10th story window in his room. A Cleaning Lady would help the police by offering their universal key to the door. They would then grab Dahlerup and pull him back through the window, putting him under arrest. Once he was being processed the police would learn that the identity of the man was Dahlerup himself.
Dahlerup's testemony would help to link Voss Bank, the KIB, and several foreign financial institutions with funneling money to verious political groups. The most money had been sent to the National Pan-Maurian People's Movement which was a political movement in Upper Asema that opposed the socialist tendencies within Maurille Meyliet's Government, mostly his attempts to nationalize the mining industry in the country. Implicating Felix Abloh in handling the money which had been sourced from accounts belonging to Prince Hans Erik.
Death Squad Financing
During the investigation into Braae and Dahlerup evidence came to light. A specific account holding nearly $900,000 ($8.6 Million adjusted) between April 1961 and November 1963 had been accessed by someone named "A.B Olah" which an account through Voss Bank. during interogation Braae had named the Voss Bank Account Holder as a "Contact in Upper Asema". Dahlerup would go further and name the Individual as Alphonse Baptise Amolahudéwéndè, A Asemese political figure who had connections too Cléas Twe, who himself at the time commanded the Intercommunity Coalition for the Salvation of the Asemese People (CISPA) which had been waging a low level conflict in Upper Assema since early 1960.
CISPA militants had been implicated in several crimes against humanity as they fought the government in and around the Tsitowodzi Massif. Particularly the Sinfera massacre where nearly 872 Men, Women, and Children would be killed, Éboumé massacre where CISPA militants would attack the capital of Jacqueville, killing nearly 301 people during the attack. The CISPA would also attack leftist political organizations. Reponsible for the Agora Bombing, where CISPA militants would use a Solex 404 coupé filled with 4 105mm Artillery Shells to attack a Pan-Maurian League of Socialist rally, killing almost 553 people. CISPA was one of the major anti-communist forces globally, combating socialist movements in Mauria which after decolonialism was the epicenter of communist adgitation globaly.
Further investigations would reveal that similar financial schemes were in play in several other countries. with nearly $10 Million ($95.5 Million Adjusted) to othher similar group. Braae also had financial stakes in International Mineral Works and mining company which was active in Upper Asema. Braae would not confess to any wrong doing, but Dahlerup would claim that the main goal was to funnel KIB funds into International Mineral Works and CISPA in order for investors to reap huge returns once a pro-privitization government was installed in Upper Asema.
KED Drug Trade Alligations
During the course of the scandal there were also claims that the Royal Intelligence Directorate (KED) were onvolved in drug smuggling to help finance militant groups in Guimaria. these allegations were brought into the spot light after documents taken during the Braae Raid had show numerous financial documents relating to buisness ventures in the region. Acording to documentation found in the raid a shell company belonging to know proxy investor for Prince Hans Erik, Slobodon Hraveshtoy held onto several hangers in Bunifaziu. Official these hangers were used for official KED buisness. Journalist Yves Vigneault would publish a story shortly after claiming that the KED and the Narkobureau had been in conflict in the region. Vigneault stated that the hangers owned by Hraveshtoy were used by members of local right wing militant groups, particularly Diego Cienfuegos, a known militant in the region and wanted by Arcadia for alledgedly smuggling drugs into the country. The revelations cause many former and current Narkobureau members to come forward annonimously, stating that while the KED did not directly deal in drug trafficking it did facilitate the drug trade as way for local right wing forces to finance their operations. The KED would also use its precessnce to stop inquiry into these actions, in once incident this caused a shootout between Narkobureau officers and KED operatives in the city of Teusaca in 1964.
OFficially all sides have denied the validity of the reporting. With KED director Søren Mouritsen and Narkobureau director Stig Pihl hosting a joint conference to attempt and dispell the issue. However Mouritsen's relationship to Prince Hans Erik and the alledged use of KIB funds from Prince Hans Erik to finance KED operations in the region forced him to resign three weeks later.
Lyhamholm Trials
Throughout 1965 and 1966 trials for those implicated in the KIB and Braae scandals were held in Lyhamholm. The Ministry of Justice had put nearly 213 people on trail for various offensives ranging from simple wire-fraud to illegal financial trading. Braae and Mortensen were the biggest defendents and had the most charges levies against them. from Februray 1965 until June of 1966 the case was presided over with publically aviable radio and television broadcasting of some of the trial and with continuous reporting. Dubbed the "Trial of the Century" by the media. Dahlerup would cooperate fully with officials and give detailed explinatiions of how the KIB and those involved would use a network of interconnected bank accounts under multiple identities as well as shell businesses to wash and transfer money with little to no scrutiny from the extremly lax Arcadian finacial relulatory bodies. This brought to light the extent of the KIB, KED, and Hans Eriks involvement in international financial crimes. Mortensen and Braae would also testify and would would maintain their innosence, claiming that several other defendents had taken part in these issues and that the documentation was simply for financial reasons and did not implicate involevement in those activities.
On June 10th 1966, nearly 198 of the 213 defendents would be found guilty, including Braae and Mortensen, Dahlerup had agreed to a deal with prosecutors that if he cooperated he would avoid jail time, however the Ministry of Justice reneged on this agreement after his testimony. Morrtensen would be sentenced to 37 years in prison, Braae 55, and Dahleup 30. collectively the Justice Ministry had sentenced the defendents to over 1,000 years of prison time. one of the harshest and public displays in the nations history. The ministries dealings with Dahlerup would be appealed and 4 months later his sentences was overturned. Dahlerup then made his way to Arcadia claiming to be a political refugee. A few other sentences would be challenged but the big two of Mortensen and Braae would be upheld by the Royal Court later that year.
Mortensen's Escape
In early 1966 Mortensen would escape from prison with the assistence of KED operatives. Operatives Janus Therkildsen and Ejnar Bæk would arrive at the Haverigg Prison Complex, stating that they needed to take prisoners to another location temporarially for security reasons. Warden Bjorn Duus would allow the agents to proceed without issue. It was then that they took Mortensen and escorted him off the premises. In their interigation (unsealed in 2015 after both men had died) Therkildsen and Bæk claimed that they had brough Mortensen to a saferoom at the Hotel Dorvon in central Regnhavn. ruportedly sharing the room with Nicanor Chondratos. Unsealed doccuments revealed that the Royal Police had taken Therkildsen and Bæk into custody, where they admited to helping Mortensen escape. Therkildsen and Bæk would also admit to membership within Kultur og Tradition, claiming that they were asked by Kultur og Tradition member and Deputy Chair of the Royal Intelligence Directorate Otto Kresten von Graah to help Mortensen escaape. Initially the pair had planned to aqquire visas to Arcadia unnder false identities, using the diplomatic standoff resulting from Operation Blue Heron as a way to avoid detection or extradition if caught. Ultimately the goal was to fly Agrea and seek Political Asylum
However according to them mens joint statement, the Visas were denied, So KED officials taking on the case had Mortensen sent to Augusta, where he would meet up with Boris Tiedemann, a Eisen diplomate operating in country. Tiedemann was able to help secure a flight to Argea were Mortensen would stay for 6 months under close supervision. The Royal Police would offer a $250,000 Reward for information leading to his arrest. However until Mortensens return the Royal Police would not be aware of where Mortensen was hiding. After the testemony of Therkildsen and Bæk, Graah's office would be raided by a Royal Police Task Force, uncovering more documents that linked KoT to the wider KIB banking fraud scandal. Graah would resign the next day and return to civilian life, no charges were ever brought against him.
1967 Election
The 1967 election cycle was the most contentious in recent memory. Prime Minster Dinesen had called for early election after major disagreements in the April 7th threatened the their abilily to govern effectively. Polling at the time had showed that the Social Democrats were polling extremely well, as the Christian Democrats gradualled withered thanks to a feriously split caucus. Leader of the National People's Union, Rikardt Rehberg had positioned himself as the main conservative opposition figure to Melsing and Dinesen. Melsing for his part was unsure of his political future as the parties internal politicals where chaotic.
During a speech at st. Cornillius Hall at the University of St. Maud, Dinesen would be evacuated as far-right protestors broke through a police line guarding the event. This resulted in a melee between the Social Democrats in attendence and the protestors. Dinesen would be brought to his official residence, and the protestors would eventually be ushered off University property. Melsing would survive five internal votes of confidence, all by increasingly narrow margins, as the Hansist faction of the party attempted to wrestle control away before elections could proceed.
On Election Day, the Social Democrats would be the first party to increase there vote share as coalition heads since the 1878 elections. Dinesen would see his majority sweep Regnhavn, the Medøxnej River Basin, and the Indeginous Trust Lands. The Christian Democrats saw a collapse of their support, being outpaced in traditional strong holds by the National People's Union. This Election solidified Social Democrat control of government for a full mandate. In his victory speech Dinesen made clear that so long as he was Prime Minister he would never pass aan act to elevate Hans Erik to the monarchy.
