Vesttoo defends probe report amid creditors’ concerns

Interim CEO cites transparency "at every turn"

Vesttoo defends probe report amid creditors’ concerns

Insurance News

By Terry Gangcuangco

Embattled insurtech Vesttoo has come to the defense of its probe report amid doubts expressed by certain creditors.

Less than two weeks ago, Vesttoo announced that the investigation into the letters of credit fraud involving the firm had identified “pervasive and systemic misconduct” that was supposedly engaged in by ex-Vesttoo leaders and bank staff.

At the time, interim chief executive Ami Barlev stated: “The investigation has confirmed that this scheme was confined to the following Vesttoo executives: Yaniv Bertele (former CEO), Alon Lifshitz (former [chief financial engineer]), Udi Ginati (former senior director, capital markets), and Josh Rurka (former senior director, Asian markets), who acted with external entities such as employees of China Construction Bank and Standard Chartered.

“While we obviously remain very troubled by the misconduct of those that the company and markets placed great trust in, we are pleased that the investigation has confirmed that this scheme was confined to a small subset of the Vesttoo leadership team.”

Now it’s been revealed that certain creditors are questioning the independence of the probe. Bertele and Lifshitz themselves had previously cited a “significant” conflict of interest in relation to the investigation team.

In a new statement sent to Insurance Business, Barlev said in response to creditors’ concerns: “At every turn we have been transparent with our stakeholders around the world, and we will continue to do so.

“There is an enormous amount of information that has been collected and analyzed, and while I can understand the concern of our partners, we are committed to working with all of creditors to ensure that they are brought up to speed on the results of the investigation and the company’s go-forward business plan.”

Barlev went on to express his full confidence that the obligation to find the truth and identify culpable parties had been fulfilled by the lawyers and forensic investigators who led the probe.

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