Suspended sentence for cancer charity fraud

Only one per cent of money collected went to promised cause

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An Espoo man was given a one-year suspended prison sentence for fraud in connection with a charity fund raising campaign for cancer patients.
     The court found that 32-year-old Simo Olavi Laakso had committed aggravated fraud. An alleged accomplice was acquitted.
     About 56,000 Finns contributed to the telephone fund raising drive, thinking that the revenue would go to benefit children with cancer. For their contributions they got gifts such as calenders, soft toys, and letter seals.
     Most of the money collected went into Laakso's own company Solia Oy.
     Only about one per cent of the approximately EUR 2.5 million raised went to help the cancer patients.
     
The court ordered Solia to forfeit about EUR 436,000 in criminal proceeds. In addition, Laakso was ordered to pay more than EUR 78,000 to more than 1,300 donors, who were plaintiffs in the case. The sums of money vary between EUR 20 to more than EUR 100.
     Solia had hired a number of telemarketers, who were witnesses at the trial. In their testimony they said that they were urged to use emotional appeals to elicit donations from people that they called. They were also instructed to deflect any questions on exactly how the money would be spent.
     Laakso's lawyer Asko Keränen said that he would appeal the decision. He says that Laakso is shocked by the court's decision.
     "According to the prosecution, the illegality of the extensive fund-raising was based on the idea that the overhead was too high, and the amount that went to the target was too small. The district court did not take any stand on this legal matter", Keränen said.
     
"Where is the limit for when a plaintiff can automatically say that he or she has been misled? We brought plenty of evidence that there are no obligations or instructions that Laakso could have followed", Keränen said.
     "I would like to point out that only the fourth year of operation was underway, and at the beginning, there was naturally no money", Keränen notes.


Previously in HS International Edition:
  Suspected fraudulent cancer charity drive attracts over 50,000 donors (11.4.2005)

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