Prosecutors seek prison for Thailand-arrested ski operator

Prosecutors are seeking a prison sentence for Jorma Leppäniemi over alleged aggravated accounting and tax offences, Yle reports. The charges were read at the South Ostrobothnia District Court, where Leppäniemi appeared remotely and denied the allegations.

The alleged offences took place in 2019 and 2020. Finland’s Tax Administration has joined the charge of aggravated tax fraud.

False invoices and improper VAT refunds

According to the charges, Leppäniemi failed to record business transactions and provided misleading information as chief executive and the person exercising actual control over Erämaan Elämyskeskus Oy.

The company had an agreement with the municipality of Soini to operate the Vuorenmaa ski centre. Its accounts included 26 allegedly fabricated invoices worth nearly 280,000 euros for purchases including all-terrain vehicles, snowmobiles and restaurant furniture.

A credit invoice worth almost 170,000 euros for a deal that did not take place was also allegedly left unrecorded. The transactions included dealings with AIDL Nordic, where Leppäniemi was also chief executive.

Erämaan Elämyskeskus also allegedly submitted incorrect VAT returns to the tax authorities. The company received more than 90,000 euros in improper VAT refunds based on those returns.

The company was declared bankrupt in October 2021, when its assets were listed as zero.

Leppäniemi denies the charges

Leppäniemi denies the offences and all the prosecutor’s claims. His lawyer argued that the offences in their basic form would already have become time-barred.

The defence said Leppäniemi had planned to develop the ski centre in Vuorenmaa over the long term and had made substantial investments. It argued that he had no motive to seek tax benefits worth only tens of thousands of euros.

The defence also said that a failed business is not a crime and that the operation had been hindered by the coronavirus pandemic and disagreements with the municipality of Soini.

Arrested after years abroad

Leppäniemi, 69, avoided the authorities for so long that some of the allegations became time-barred. He was arrested by Thai immigration authorities in late June near Bangkok’s international airport after years on the run.

According to the Bangkok Post, he had been difficult to locate because he stayed indoors and ordered food for delivery. Authorities eventually posed as gardeners to lure him outside and arrest him.

The South Ostrobothnia District Court remanded him in custody in July on probable cause.

Leppäniemi has previous convictions for financial crimes dating back to the 2010s. He was sentenced to one year and six months in unconditional prison for aggravated insurance fraud after being found to have staged water damage. He has also received suspended sentences for fraud and aggravated fraud.

The municipality of Soini later became embroiled in a dispute with Erämaan Elämyskeskus over the operation of the ski centre. Although the company was registered in Leppäniemi’s wife’s name, the municipality said Leppäniemi handled its affairs in practice. The district court eventually upheld the municipality’s eviction and rejected the entrepreneur’s compensation claims.