Finland's National Bureau of Investigation has opened a criminal inquiry into suspected fraud by nationwide gold buyer Gold Store Finland Oy. The investigation centers on whether the company, which also markets itself as KultaHopea and KultaVintage, systematically misled sellers about the value of their gold jewelry in transactions across the country.
A January Transaction Triggers Probe
The investigation was prompted by a specific transaction on the Hämeenlinna market square in January. Police are examining the sale where a woman born in the 1950s sold a batch of gold items from the company's mobile purchasing vehicle, often a caravan or travel van used for pop-up buying events. Authorities suspect the seller was misled about the quantity and, consequently, the value of her gold. According to the initial police report, the sale proceeded at a rapid pace after the woman brought her jewelry to the vehicle for appraisal. Citing time pressure, the buyer did not weigh or verify all the items presented.
An expert valuation obtained for the investigation assessed the total value of the woman's gold pieces at over 11,000 euros, based on the mid-January gold price. This figure starkly contrasts with the initial payment she received, highlighting the potential scale of the alleged underpayment in a single transaction.
Company Responds to Allegations
Gold Store Finland Oy's CEO, Matias Kerminen, has acknowledged the January incident but framed it as a violation of internal company rules by a specific buyer. In a statement, Kerminen said the buyer did not have time to check all the jewelry but confirmed the customer was later paid an additional 3,850 euros. "The buyer broke the company's internal rules and he has been given a warning," Kerminen stated. This admission of an extra payment, while intended to demonstrate corrective action, has effectively corroborated the core allegation that the initial settlement was significantly below market value. The police investigation is now focused on determining if this incident reflects a broader business practice within the company rather than an isolated employee error.
The Regulatory Framework for Precious Metals
The case unfolds against a backdrop of strict Finnish and EU consumer protection regulations governing the trade of precious metals. Businesses purchasing gold from private individuals are bound by laws requiring transparent and fair trade practices. The Consumer Protection Act and specific regulations on door-to-door and distance selling impose clear obligations on buyers to provide accurate information regarding valuation methods and prices. The Finnish Competition and Consumer Authority (KKV) monitors such markets, and systematic fraud could lead to significant fines and trading prohibitions beyond any criminal penalties. This legal environment frames the police investigation not just as a criminal matter but as a potential case of widespread consumer rights violations.
Broader Pattern Under Scrutiny
Police have indicated their investigation extends beyond the Hämeenlinna case to examine whether there is a more general pattern of activity within the company. Gold Store Finland Oy operates a mobile buying service that visits towns across Finland, a business model that relies on convenience for sellers but also presents challenges for consistent oversight and procedure. Investigators are likely reviewing transaction records, customer complaints, and the company's internal training and valuation protocols to establish if misleading practices were encouraged or tolerated. The company's use of multiple trading names—Gold Store Finland Oy, KultaHopea, and KultaVintage—is also a standard focus in fraud investigations, as it can relate to how the business presents itself to the public and in marketing materials.
What Comes Next in the Investigation?
The National Bureau of Investigation will proceed by gathering evidence from affected customers across different regions where the company operates. The process will involve forensic financial analysis of the company's transactions and detailed interviews with both employees and former customers. Depending on their findings, the case could be escalated for prosecution by the National Prosecution Authority. Simultaneously, the Finnish Competition and Consumer Authority may launch its own parallel administrative investigation into potential breaches of consumer law. The outcome will be closely watched, not only for its resolution of potential criminal fraud but for its impact on the regulatory landscape surrounding the purchase of gold from private individuals in Finland. Will this investigation lead to tighter industry controls, or is it an outlier in an otherwise compliant sector?