ERGO ends investigation of the compliance case in Russia

ERGO International announces the end of the internal investigation into embezzlement and fraud at a subsidiary in Russia, which was launched in 2016.

The final report, which was prepared by an international auditing company, found that ERGO suffered substantial financial damage through the actions of two locally responsible former executives, as well as several other former employees who collectively engaged in vehicle trafficking and paid excessive commissions for the brokerage of overseas motor vehicle insurance policies. The amount of the affected business transactions, according to estimates of auditors, is in the lower double-digit million euro range.

ERGO dismissed the employees responsible at an early stage. Based on results from the auditors report, the company is now examining whether claims for financial damages can be filed against these individuals. The crimes were exposed in mid-2016, thanks to a proven and trusted ERGO Compliance System. In response, ERGO immediately launched an extensive internal investigation with the aid of external forensics providers and legal experts, while simultaneously cooperating with local authorities.