Vesttoo Board: “No plans to liquidate”, co-founders “on paid leave”
Responding to media reports about the removal of senior co-founders and the potential dismantling of the company, the Board of under-fire insurtech Vesttoo has issued a statement saying they have “no plans to liquidate the company.”
As the alleged collateral fraud related issues and story rolls into a third week, the Vesttoo Board now feels the need to be more vocal, it seems.
As we explained earlier today, media reports said that co-founders of Vesttoo, CEO Yaniv Bertele and Chief Financial Officer Alon Lifshitz had been removed from their positions by the Board and there were reports of the company being wound-down.
Now, the Vesttoo Board has come out in response to these reports, suggesting the co-founders are on leave, not laid off from the firm.
Saying, “We can confirm that the board is considering the removal of Yaniv Bertele, Chief Executive Officer and Alon Lifshitz, Chief Financial Engineer, from their positions at the company.
“They will be on paid leave until a final decision is taken.
“We are exploring multiple options for interim replacements, but no decision has been taken as of yet.”
It’s worth noting again, as reported in our earlier article today, that co-founder and CTO Ben Zickel remains in position.
On the future of the insurtech, the Board also said, “We want to emphasize that there are no plans to liquidate the company. Our aim is to help the company overcome this crisis, provide solutions to affected clients, and focus on our core services and value proposition in order to rebuild the company.
“The board has actively stepped in to assist in the company’s day-to-day operations for this purpose.”
Unfortunately there is still no clarity from the Board on the alleged fraud itself, how it occurred or where it began, on on the findings of an audit into the allegedly forged letters of credit (LOC) that backed Vesttoo collateralized reinsurance deals.
But this does at least provide some clarity on the Board’s current intentions for Vesttoo and its desire to see the issue through and potentially rebuild the company, if at all possible.
Also read:
August 3rd – Vesttoo: CEO Bertele & co-founder Lifshitz removed. Multiple banks said involved.
August 2nd – Vesttoo: Collateral LOC issues weren’t spotted by multiple parties involved.
August 1st – FBI investigating LOC fraud allegations linked to Vesttoo collateral.
August 1st – Vesttoo to lay off large portion of global workforce.
August 1st – Corinthian agrees investor terms to replace Vesttoo LOC-linked collateral.
July 31st – Aon facing client & counterparty action over Vesttoo linked letters of credit.
July 28th – No comment from Aon on collateral issues, but LOCs seen as important.
July 28th – Corinthian operating under assumption all Vesttoo-sourced LOCs are fraudulent.
July 28th – Clear Blue: Over 50% of Vesttoo-linked reinsurance already replaced.
July 27th – Everest can lean in if opportunities emerge from Vesttoo collateral issue: Williamson.
July 27th – Vesttoo issue shows importance of sound counterparty risk practices: DBRS.
July 27th – Beazley CEO on Vesttoo: We would look to replace cover & recover premium.
July 26th – Clear Blue rating under review with negative implications on Vesttoo issues.
July 25th – Vesttoo: Updated statement says appears “procedures were circumvented”.
July 25th – AM Best to review fronting collateral in light of Vesttoo news.
July 25th – Fronting company Obsidian says Vesttoo exposure “de minimus”.
July 24th – Clear Blue: No material rating impact from Vesttoo issue. Reinsurance may be required.
July 21st – Vesttoo: Multiple LOCs from one bank in focus. Failure of security controls or KYC?
July 20th – MS Transverse: Any exposure to Vesttoo LOC collateral issues “immaterial”.
July 20th – Vesttoo: Collateral damage.
July 19th – Vesttoo: New report claims significant amount of forged LOCs. The question is how?
July 18th – Vesttoo faces fraudulent collateral claim. Confirms investigation, exit of some leaders.
