Former Saaremaa Shipping Company Executives Must Serve Two Months in Real Prison
The Supreme Court confirmed on Friday the conviction of three former Saaremaa Shipping Company board and supervisory board members for causing the company's bankruptcy.
Former Saaremaa Shipping Company Executives Must Serve Two Months in Real Prison
The Supreme Court confirmed on Friday the conviction of three former Saaremaa Shipping Company (SLK) board and supervisory board members for causing the company's bankruptcy. The three men must serve two months in real prison as punishment, according to ERR.
According to the charge, SLK board member Tõnis Rihvk and supervisory board members Vjatšeslav Leedo and Lennart Viikmaa caused insolvency to the company. Leedo and Rihvk were also charged with forgery.
The District Court found that before the disputed transactions, the shipping company had acquired over four million euros in liquid assets, with approximately 5.5 million euros in a bank account and four ferry vessels valued at nearly four million euros in total on the balance sheet. Following the transactions, the company had no liquid assets remaining and became insolvent.
The District Court sentenced Rihvk and Leedo to two and a half years in prison, which was suspended for four years. Viikmaa received a suspended sentence of one year and six months with a probation period of three years. The Court of Appeal increased the sentences and decided that upon the decision entering into force, the convicted men must serve two months in real prison.
The Court of Appeal explained that the recent conclusion of Saaremaa Shipping Company's bankruptcy proceedings does not justify the acquittal of the accused. Criminal liability does not depend on whether the consequences of the act were subsequently remedied or damage compensated. Therefore, the men remain liable for causing insolvency, even though companies controlled by Leedo have paid the majority of the shipping company's debts.
Leedo intends to appeal to the European Court of Human Rights. He stated through a public relations agency that he disagrees with the court decision and considers it unjust, the entire process legally questionable, and the punishment disproportionate.
The Supreme Court's Criminal Division left the lower courts' decisions on guilt and punishment unchanged. However, it quashed previous judgements that satisfied the civil claim of OÜ Reyna Trade and ordered the accused to compensate the related court costs.
In Saaremaa Shipping Company's bankruptcy proceedings, Reyna Trade's claim was recognised to the extent of 421,914 euros. The company Peetri Keskus OÜ, connected to Leedo, paid this sum on behalf of the debtor. The injured party was left with a remaining claim of 276,473 euros and interest. The civil courts found that the shipping company's debt to Reyna Trade was paid through transfers from the former company, and the Supreme Court reached the same conclusion when deciding the civil claim in the criminal case.
The Supreme Court also addressed the defence's claim that Court of Appeal judge Andres Parmas should have recused himself, as he had previously been involved with the matter in his role as head of the prosecutor's office. Parmas submitted a recusal request himself, but the Court of Appeal's president rejected it. The Supreme Court explained that a former prosecutor must be recused only if he participated in the proceedings of a specific case or interfered with its course. In this instance, no such circumstances existed.
Source: ERR News