Man convicted after collecting 340,000 euros for fictitious energy device

A man from Southwest Finland collected about 340,000 euros from investors for a hydrogen-powered energy unit that did not exist, Yle reports. The Southwest Finland District Court convicted him of aggravated fraud and an offence involving false register entries.

The court sentenced him to just under two years in suspended imprisonment. He must also complete 70 hours of community service and pay 176,000 euros in compensation. He was ordered to forfeit 24,000 euros to the state as proceeds of crime.

The offences took place in Turku in 2018 and 2019. The case involved about 150 injured parties, although the prosecutor estimated that not all those affected had been reached.

The investments ranged from a few hundred euros to more than 10,000 euros. Only part of the money collected was used for the project.

Unrealistic promises

The man claimed that the hydrogen unit was nearly complete and had been tested. He said it could be used to heat detached houses and produce fuel for cars.

He misled investors with unrealistic promises of large returns and rapid increases in the value of shares. The claims about the advanced device later proved to be untrue.

The marketing was partly organised through a network model. Investors were encouraged to recruit additional investors and were promised money or further investments in return.

The court found that the fraud had been planned, sought substantial financial gain and caused harm to a large number of people. The man admitted his guilt.

The court said the proceedings had been delayed, which it considered a mitigating factor in sentencing.

The man’s wife, who received bank transfers linked to the scheme, was also ordered to forfeit about 20,000 euros to the state as proceeds of crime. The district court’s decision can be appealed.