Nova Real Estate Development CEO Arto Merisalo remanded in custody

Arto Merisalo, CEO of the bankrupt Nova Real Estate Development, was remanded in custody on Thursday morning.
      The remand hearing at Helsinki District Court was held behind closed doors.
      Nova Real Estate Development, which is part of the Nova Group, was a major contributor to electoral campaigns of candidates in the 2007 Parliamentary elections. The company’s largesse especially benefited candidates of the Centre Party.
     
The ongoing criminal investigation concentrates on the company’s recent bankruptcy. Police are looking into the high salary enjoyed by Merisalo, and an unsecured loan granted by the company.
      The investigators found that Nova Real Estate Development converted a loan taken out by Merisalo into salary due, worth EUR 750,000, a day before the company went into receivership.
      This arrangement meant that Merisalo got paid, but the income tax and social security payments normally paid in connection with salaries and wages were turned into reorganisation debt.
     
Merisalo’s remand hearing on Thursday morning was held behind closed doors, and all photography was banned. Police had asked that the courtroom be cleared of spectators for “investigative reasons”.
      Police gave few details on the case on Thursday. Markku Nisula, head of the white-collar crime unit of the Helsinki Police, said that Merisalo is not the only person suspected of wrongdoing in the Nova Real Estate Development case.
      However, he would not say if Tapani Yli-Saunamäki, CEO of the Nova Group, was suspected of any crime.
      According to the late-edition tabloid Ilta-Sanomat, Arto Merisalo’s former wife Aija Merisalo had also been detained in the matter. However, Nisula would not confirm or deny the report.
     
Aija Merisalo was reached by Helsingin Sanomat on Thursday, confirming that she was not behind bars at least at that time. However, she would not comment on her possible arrest, or on any matters related to Nova Real Estate Development or the arrest of her former husband.
      The police expect to complete their investigation sometime in the autumn.


Previously in HS International Edition:
  Millions in municipal pension funds invested in Nova Group project (19.6.2009)
  BREAKING NEWS: Bankruptcy Ombudsman orders special audit of Nova Group (19.6.2009)
  Police investigating Rovaniemi property dealings with Nova Group (16.6.2008)
  Municipal pension boss obscured business contacts with Nova Group (22.6.2009)
  Nova Group backed KMS with at least EUR 145,000 (6.6.2008)
  CEO of Nova Group claims Centre supports real estate company in zoning issue (30.5.2008)