Outokumpu investigation to widen to cover money-laundering

Prosecutor confirms having requested further investigation from Customs officials

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According to information obtained by Helsingin Sanomat, the criminal investigation into the wrongdoings linked with the export of stainless steel to Russia by the Finnish metallurgical company Outokumpu is to widen to cover money-laundering.
      So far penal code titles such as aggravated accounting offences and gross forgery have been used in connection with the case, which is currently in the consideration of charges phase.
      Prosecutor Malla Sunell confirms that she has requested the Customs for examination of the matter. Sunell refrains from revealing the reason for the move, however. The request for further investigations was sent to the Customs on Monday afternoon.
     
The money-laundering suspicions concern only some of the eight Outokumpu Stainless employees who have been suspected in the preliminary investigation of an aggravated accounting offence and gross forgery. Outokumpu Stainless is part of the Outokumpu Group.
      “The request for further enquiries is not a dramatic turn in the investigation process but merely its final phase. The prosecutor has not informed us what the further investigation relates to. During the criminal investigation that has now lasted for three years, we have answered questions relating to our exporting activities to Russia. No money-laundering issues have ever emerged. We have no reason to suspect that any of the other suspected crimes would have been committed, either”, explains Matti Louhija, Senior Vice President, Corporate General Counsel, Outokumpu.
     
According to the 1995 legislation regarding crimes of concealment and money-laundering, also the legal person or body corporate, in this case Outokumpu, has criminal responsibility.
      The maximum community fine that can be imposed on the legal person is EUR 850,000. In addition, a party found guilty of money-laundering may be ordered to return to the State the funds that have passed through it.
      In the preliminary investigation, the Customs have not found evidence to support the notion that those suspected individuals would have gained any personal economic benefit. In other words, the one to have benefited from the suspected crime would have been Outokumpu itself.
      The Customs suspects Outokumpu of having filed false and fraudulent export documents in connection with its dealings with the freight forwarding company Saimaa Lines.
      Furthermore, Outokumpu has forged its accounts to cover the crime, the Customs say. Two Saimaa Lines workers are suspected of gross forgery.
      In the preliminary investigation Outokumpu, Saimaa Lines, and the suspected individuals have denied all accusations.
     
According to the Customs, Outokumpu’s exports to Russia have been administered by using intermediary businesses, such as Metal Recycling Enterprise, registered in tax havens. Some of the mentioned intermediary businesses are made-up companies that do not even exist, the Customs claim.
      According to Sunell, the consideration of charges phase is to be completed as soon as possible. The case entered this phase in the summer of 2009.
     
The suspicions date back to a period between May 2005 and March 2006.
      The preliminary investigation was commenced by the Customs at the beginning of 2007.
      The State of Finland owns 31 per cent of Outokumpu.


Previously in HS International Edition:
  Outokumpu issues sharp denial over Finnish Customs suspicions on exports to Russia (19.5.2009)
  Customs authorities detain several Outokumpu employees (16.3.2007)

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Helsingin Sanomat