Three charged in financial crime case linked to Paljaka ski resort

A financial crime investigation into the now-defunct Paljaka ski resort in Puolanka, Finland, has led to charges against three individuals, with five separate offences alleged, Yle reports.

Prosecutors claim the former CEO of North Finlandia Travels (NFT), the company operating the resort, diverted nearly €160,000 in sales revenue to their personal and company accounts between autumn 2019 and the firm’s bankruptcy in late 2022. The CEO is accused of gross breach of trust, aggravated accounting offences, and aggravated fraud—including manipulating the sale price of the resort’s hotel.

According to the prosecution, the ex-CEO misled British investor George Hand into believing the hotel property was sold for €350,000, while secretly purchasing it for €290,000 two days earlier. The CEO then sold a 60% stake to Hand for €350,000, allegedly profiting €60,000 from the transaction.

Two accounting firm representatives—one acting as Hand’s proxy—also face charges. The proxy is accused of abusing their position by securing Paljaka’s lease rights for NFT (40% owned by the ex-CEO) instead of Hand’s company, forcing Hand to repurchase the rights for €50,000 plus transfer taxes. Additionally, €23,000 was allegedly transferred without authorisation from Hand’s investment firm to the ex-CEO in 2019.

All three defendants deny the charges and compensation claims. Prosecutors seek conditional imprisonment for the accounting representatives and unconditional imprisonment for the ex-CEO. The trial’s preparatory hearing began today in Kainuu District Court.

The resort’s operations ceased in late 2022 after NFT’s bankruptcy. Unpaid land rents, utilities, and taxes led Puolanka municipality to terminate lease agreements in January, though some infrastructure remains under Hand’s ownership. The municipality has not disclosed further steps to resume operations.