Helsinki police investigate fraud case involving Serge Energy and foreign investors

The Helsinki police are investigating a serious fraud case involving a company registered in Finland that allegedly defrauded foreign investors of substantial amounts of money, according to Svenska Yle. The Finnish Financial Supervisory Authority has received 10 to 30 reports from foreign individuals claiming they have been scammed by a company named Serge Energy. Investors who funded this Finnish pellet company have begun to share their experiences on Reddit, revealing that some have invested tens of thousands of euros. Many are now wondering if they will ever see their money again.

Reports indicate that the fraud began in 2020 when Serge Energy claimed to investors that it could generate returns through wood pellet trading. The company stated it intended to purchase high-quality forests in Finland with the investors’ funds, and planned to sell wood pellets produced from these trees. Investors were promised a minimum annual return of nine percent, which has since raised suspicions.

Further examination by Svenska Yle unveiled several red flags. Despite attempts to reach out, no one answered the company’s Finnish or Spanish phone numbers, and there was no evidence of business operations at its listed address in Helsinki. The company only rented a post office box. Moreover, while it had reportedly acquired significant forest areas, the amount charged to investors seemed exorbitant compared to the actual market price.

In August 2024, the company’s assets were frozen by a district court, with a value nearing three million euros. Investors are questioning whether this was an intentional scam from the beginning or if initial intentions were genuine. The founder, a 36-year-old Spaniard, along with other board members, was not based in Finland and had not paid taxes in the country. Despite this, the company leveraged Finland’s reputation in its marketing, leading some investors to trust its legitimacy based on this premise.