Former management of Jippii charged with serious stock market violations
Harri Johannesdahl
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Ilpo Kuokkanen
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Arto Karila
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The former managers of the Internet and telecommunications service provider Jippii (currently Saunalahti) have been charged with several serious stock market violations.
District prosecutor Riitta Partia decided last week to press charges against a total of 16 people and three companies on criminal charges including aggravated misuse of insider information, giving out false information, aggravated stock price manipulation, and bookkeeping crimes.
Charges of aggravated stock price manipulation and aggravated misuse of insider information were filed against Harri Johannesdahl, who was Jippii’s CEO at the time.
Facing charges of aggravated stock price manipulation are a number of people, including Ilpo Kuokkanen, who was the full-time chairman of the board at the time, as well as board member Arto Karila.
All have denied committing any crimes in the events that took place in late 2000 and 2001.
Jippii, which was listed on the Helsinki Stock Exchange in April 2000 while it was making a loss, is seen as a symbol of the Internet frenzy, in which queues of people hoping to buy shares in IT companies extended to Helsinki streets.
Jippii’s successor Saunalahti is now a subsidiary of Elisa, after Icelandic investor Thor Björgólfsson sold the company to Elisa last year in a colourful sequence of wheeling and dealing.
The charges raised against the former management of Jippii are the first time that the management of a Finnish listed company is being charged with aggravated stock price manipulation. There have been previous convictions for aggravated misuse of insider information.
A conviction carries a sentence of no less than four months and no more than four years in prison.
Helsingin Sanomat has learned that the charges are related to stock market statements given out by Jippii in February , and on May 15h and 23rd, 2001.
Prosecutors say that at those times, the Jippii management gave out false and deceptive information on Jippii’s stock, with the aim of pushing up the price of the company’s shares.
According to the prosecutors, the inflated share prices helped Jippii in negotiations over finance. Another alleged unfair benefit came from the fact that Jippii sought to use its shares as payment in corporate acquisitions.
Helsingin Sanomat
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| 9.5.2006 - TODAY |
 Former management of Jippii charged with serious stock market violations
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