Friday, February 24, 2017

ABB Hit by Fraud in South Korea

Having spent the last 18 years of my
43-year employed life working at detecting health insurance fraud, I tend to react to the appearance of the word "fraud." So, when I saw the above headline in Wednesday's WSJ I had to read on, despite not knowing what ABB stood for, and not really having any connection to South Korea, unless it is in the living room and might be the flat panel TV. I'll have to check later.

The story goes:

ABB Ltd. said it would likely book a $100 million charge related to a "sophisticated criminal scheme" it said was orchestrated by the treasurer of its South Korea unit, who has gone missing.

The Swiss engineering company said it suspects that the treasurer forged documents and colluded with third parties to steal from the company before disappearing Feb. 7. An ABB spokeman said the company uncovered the alleged theft Feb 9.

In a complaint filed with South Korean law-enforcement authorities, ABB alleged that the treasurer stole 35.7 billion won ($31.2 million) by sending money to his personal bank accounts in a series of transactions, according to an official at Cheonan Seobuk police station in South Korea.

The treasurer has been identified as Oh Myung-se, the person said. Mr Oh couldn't be reached for comment. 

You don't say.


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