Planet42 middleman charged with offering financial services without a license
The District Prosecutor's Office for Economic and Corruption Crimes has sent a criminal case to court, charging well-known investor Jaak Roosaare with providing financial services without a license.
According to the charges, Roosaare raised money from the public between 2020 and 2024 through companies he managed, with the aim of lending it on to Inclusion OÜ, which operated under the Planet42 brand. Prosecutors allege that Roosaare's companies did not have the license required by the Estonian Financial Supervision Authority (FSA) to raise funds in this way.
Piia Enno, the prosecutor leading the proceedings, noted that investment intermediation and raising funds from the public are regulated for a reason.
"The licensing requirement is not a mere formality. Its purpose is to ensure that companies raising money from individuals meet the requirements set out in law. According to the charges, substantial amounts of money were raised from the public over several years in this case, despite the absence of the required license," Enno said.
According to the charges, a public investment blog and newsletter were among the channels used to raise funds and the companies managed by Roosaare received a total of more than €15 million from lenders.
"The prosecution therefore considers that these were not isolated private loan transactions, but rather activities for which the law requires a license from the FSA," Enno explained.
Between August 2020 and the end of May 2023, Roosaare signed at least 448 loan agreements with various Estonian companies on behalf of the businesses he managed. According to the charges, individual loans ranged from €1,000 to €90,000. Fundraising continued after May 2023, while interest payments were made until May 2024.
The money was then lent through these companies to Inclusion OÜ, which provided long-term car rental services in South Africa and Latin America under the Planet42 brand.
In late July 2024, Planet42 abruptly suspended all loan interest and principal repayments to its hundreds of Estonian creditors, citing severe financial pressure and a rapid liquidity crunch.
Criminal proceedings against Jaak Roosaare were launched following a criminal complaint filed by the Financial Supervision Authority.
ERR also attempted to contact Roosaare for comment, but his phone was switched off.
The criminal case has been sent to Harju County Court for trial.
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Editor: Mirjam Mäekivi, Marcus Turovski
