07.03.2019 Author:

The law office Aasa-Law Ltd has assisted the The Housing Finance and Development Centre of Finland (ARA) in the Oulu district court, in the Rovaniemi Court of Appeal and in the Supreme Court in the years 2007-2019 for the financial crime and matter of compensation for damage to the Riihi foundation.

The housing fund of the government has granted ARAVA and interest subsidy loans to the real estate company owned by the Riihi foundation in the years 1995-2001. It is about a procedure in which the public authority has been given false information and the public authority has been deceived financial support to activity that has not been purposed and the public authority does not even have a right to grant the support. By giving false information, it has had a significant effect on granting of the assistance.

The legal proceeding in question has been demanding and wide. The case entirety of the Riihi foundation is the biggest economic offense matter proceeding in the area of Oulu and Northern-Finland.

The Supreme Court gave its sentence to the matter at 25.5.2012. In this sentence, the Supreme Court accepted the statement of the reason presented by the ARA and ARA’s own summary penal orders on part of the forwarding loan of Arava- and interest subsidy loan assets. This matter has a common import. The common principles of the court decision impact other grants and support of the state, municipal and other common communities.

ARA has also presented compensation for damage claims of the size of 3,6 million euros. The damage done to the ARA is in its entirety credited interest paid to the real estate office and the investment expense to the government on the part of the Arava loan. Damages are demanded from the previous Riihi foundation board president Toivo Kanninen.

The Supreme Court awarded compensation for damage to ARA 6.2.2019. Toivo Kanninen was ordered to pay damages worth approximately 5 million euros including interest on delayed payments.

Aasa-Law assists with issues that are related to financial crimes and compensations for damages. We have years of experience acting on the behalf of both plaintiffs and suspects.

This matter was taken care of by advocate Simo Ellilä.

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