Ólafur was arrested in 2012 in connection with a major police investigation into organised crime in Iceland. The police conducted several raids on properties owned by Hells Angels members and recovered both illegal weapons and stolen goods.
Several Hells Angels members were arrested in connection with the raids, Ólafur included. Ólafur however, was never formally charged with a crime and went on to sue the state for wrongful arrest.
Originally Ólafur sought 1.5 million ISK in damages and was not present in court to receive the verdict granting him 80.000 ISK. His lawyer was dissatisfied with the result but refused to comment further.
This is not the first time Ólafur has sued the state for wrongful arrest.