The incoming interim Chief Executive Officer (CEO) of the insurtech Vesttoo stated that after the initial conclusions from an in-depth investigation of fraudulent LOCs, the company found that several external factors caused the current crisis.
Ami Barlev, who has served as a member of Vesttoo’s Board since 2021 and was confirmed earlier this week as the company’s new interim CEO, made a statement on the current fraudulent collateral issue engulfing insurtech.
He explained that the deep motivation of the company, carried out by leading experts in forensic investigation together with an international law firm involved in the independent ad hoc committee of Vesttoo, produced initial conclusions and recommendations that fully adopted.
“We know that many factors, besides the company, directly led to the current crisis, including the involvement of some foreign banks and financial institutions,” said Barlev.
“Vesttoo has also initiated immediate changes in its management, removing some individuals from their positions, also as a result of the findings,” he added.
Although no names were mentioned in Barlev’s statement, the insurtech confirmed last week that co-founders Yaniv Bertele, CEO and Alon Lifshitz, Chief Financial Engineer were placed on paid leave amid the investigation.
Barlev continued: “Unfortunately we also had to leave many talented people from the company, as a result of the damage caused. These measures are taken only to ensure the financial viability of the company and not as a result of the findings. “
In early August, Vesttoo confirmed that it will let go of some of its employees, as it focuses on getting back on its feet and “coming out of this challenge stronger than ever.”
The new interim CEO also explained that Vesttoo “will decisively pursue legal actions against all parties” responsible for the fraud and subsequently causing damage to the company and its clients. He also noted that Vesttoo “will take all necessary steps to recover all and any damages, and we will take care to protect our partners, customers and our employees.”
“At this stage, we firmly ensure that the rest of the core team of Vesttoo professionals, who have the highest caliber worldwide in the fields of insurance, capital markets and technology, will not be under any suspicion, and the our company continues to operate because of these talented individuals. We thank everyone who continues to support us,” said Barlev.
Importantly, he also emphasized that Vesttoo has tightened know-your-customer (KYC) procedures, an important process in the financial market for dealing with fraud, and a mandatory process for participating in many markets.
In addition, Vesttoo adopts “strict legal procedures aimed at increasing the level of corporate governance and integrity of the Company’s business,” said Barlev.
“We will show zero tolerance for any violation of the law and will pursue legal actions against any party causing damage to the Company in the most forceful manner,” he concluded.
The statement from the interim CEO follows news that Aon’s White Rock has obtained a temporary restraining order to freeze Vesttoo’s assets.