• Tue. Mar 5th, 2024

Technology Founders Facing Gross Aid Fraud Trial in Finland

ByEditor

Feb 13, 2024
Trial of man commences as millions in development loans obtained under false pretenses

A trial for gross aid fraud involving the founders of technology company Uros begins today in the district court. The suspects, who were previously CEO and chairman of the board, denied any wrongdoing during a preliminary investigation.

The case revolves around product development loans and grants worth more than six million euros that Uros received from Business Finland in the 2010s. The police alleged that the suspects provided misleading information to Business Finland and withheld crucial facts.

In 2011-2015, when the alleged crime occurred, one of the suspects was CEO and the other was chairman of the board. The company went bankrupt in 2022 after it was determined to be other than temporarily insolvent. At its peak, Uros had debts of at least 13.5 million euros and only about 14,000 euros in cash.

Business Finland became aware in 2019 and 2020 that Uros had concealed matters that would have led to funding not being granted. In December 2020, Uros sold assets at significantly underpriced prices to a parent company through subsidiaries, leading to business transactions being canceled by the Oulu District Court in October 2021 due to unpaid claims by Jyrki Hallikainen, who represented Uros Ag in the case but did not respond within the deadline, resulting in a unilateral verdict by the court.

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