The Board of insurtech Vesttoo has revealed that Yaniv Bertele, Chief Executive Officer (CEO) and Alon Lifshitz, Chief Financial Engineer will be on paid leave as it considers removing the pair as the investigation into fraudulent activity continues.
Both Bertele and Lifshitz are two of the company’s co-founders.
The statement from the Board of Directors comes after reports suggested the pair had been removed from their positions amid internal disagreements over how to handle the fall-out of the fraudulent collateral issue.
“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,” reads the statement. “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.”
The statement from the Board emphasises that currently, there are no plans to liquidate Vesttoo.
“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,” concludes the statement.
This latest twist in the Vesttoo saga follows claims earlier this week that the company plans to let go of some of its employees, as the investigation into allegedly fraudulent letters of credit (LOC), which now involves the FBI, continues.
The ramifications of these serious allegations are potentially extremely wide-reaching, with global insurance and reinsurance broker Aon explaining recently that it may be facing legal action over the issue.
