The government of Finland is demanding funds from the sale of a New Rochelle house from the former husband of an executive who allegedly stole more than $4.8 million.
Business Finland USA Inc. sued Jaana and Ronald Colangelo, in U.S. Bankruptcy Court on Feb. 25, claiming that it is entitled to $318,533 from Ronald Colangelo.
“Ronald was not an innocent third party or a victimized spouse of a wrongdoer,” the complaint states. “Ronald was a knowing and active participant.”
Business Finland is a government-owned nonprofit corporation that helps Finnish businesses compete globally. Jaana, who worked as the regional administrator in the New York City office, was fired in 2017 on suspicions of stealing more than $4.8 million.
In 2018, Business Finland accused the Colangelos of fraud, in a lawsuit filed in Westchester Supreme Court. They had used more than $400,000 in stolen funds to renovate their New Rochelle house on Wilson Drive, $100,000 for a vacation in southern France, $485,000 for a country club membership, and $38,000 for jewelry.
In 2020, Westchester Supreme Court Justice William J. Giacomo imposed a lien on the New Rochelle house, for Business Finland.
In 2023, Jaana filed for bankruptcy protection, declaring $8,619 in assets and $705,043 in liabilities.
In 2024, a bankruptcy trustee stipulated that Ronald, as joint owner of the house, was entitled to half of the net sales proceeds of the house. But the trustee could retain those funds until he determined that no claims could be brought against Colangelo.
The house was sold in 2024 for $960,000. After expenses, Ronald’s portion amounted to $318,533.
Now Business Finland is asking bankruptcy court to declare that the Finns have a valid and enforceable lien on the house that is superior to Ronald Colangelo’s interests.
Ronald, who lives in New Rochelle, and Jaana, who lives in Larchmont, did not reply to an email asking for their side of the story.
Business Finland is represented by Eastchester attorney Julie Cvek Curley and White Plains attorney Michael R. Wood.
