Four Men Handed Prison Sentences in €12 Million Baku Investment Affair ({{commentsTotal}})

Business
Business

Harju County Court today sentenced four men to prison for misleading investors in a 12-million-euro investment project in Baku, the capital of Azerbaijan.

Erik Piirsalu and Tõnis Haavel, both 43 will have to serve six months in prison and accomplices Harles Liiv, 41, and Šarunas Skyrius, 36, both three months. All four men were also handed suspended sentences to take effect after release from prison. The men will also have to pay back 11.8 million euros to 31 investors, ranging from 1,000 to 4 million euros per investor.

According to the ruling, the four men, and a company, Gild Financial Advisory Service (AS GFAS), which was fined 150,000 euros, deceived investors on an investment project in Baku. The project was to buy a large plot of land in the city, build infrastructure and draw up a development plan, then sell the plot.

Investments were not used for the agreed purpose, the court found.

Investors, including household names such as Hans H. Luik, Marcel Vichmann and Olari Taal, paid a total of 12 million euros to the group, failing to see a profit nor the investment returned.

The court handed the group harsher sentences than demanded by the prosecution.

Lawyers for the men said there was no criminal intent and they will appeal.



{{c.alias}}
{{c.createdMoment}}
{{c.body}}
{{cc.alias}}
{{cc.createdMoment}}
+{{cc.replyToName}} {{cc.body}}
No comments yet.
Logged in as {{user.alias}}. Log out
Login failed

Register user/reset password

Name needs to be fewer than 32 characters long
Comment needs to be fewer than 600 characters long
{{comment.captcha.word.answer}}

news.err.ee

Opinion
Independence Day: Estonia’s way into the future isn’t a race

There is a lack of connection between the Estonian state, and the people who live here. While it expects a lot of the state, Estonian society doesn’t seem ready to contribute, writes Viktor Trasberg.

Lotman: Security academy would be crucial Estonian identity point in Narva

In an opinion piece published by Eesti Päevaleht, Tallinn University professor Mihhail Lotman found it important to overcome the mental barrier separating Ida-Viru County from the rest of Estonia.