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Vesttoo isolates source of its crisis

Ami Barlev, interim chief executive, Vesttoo (Photograph supplied)

Vesttoo, the insurance risk transfer platform just forced to layoff most of its staff, say investigators have identified the external factors which led directly to its existing crisis, including the involvement of certain foreign banks and financial institutions.

Ami Barlev, incoming interim Vesttoo CEO, threatened legal action against anyone who was deemed to have hurt the company.

He said the in-depth probe carried out by top forensic investigators, together with an international law firm engaged by Vesttoo’s independent ad hoc committee, has been under way for weeks.

He said the investigation has been supervised by the ad hoc committee which is comprised of independent directors who are not part of the company’s management.

Mr Barlev said: “The investigators have presented initial conclusions and recommendations which have been adopted in full.

“We have learnt that a number of factors, external to the company, led directly to the current crisis, including the involvement of certain foreign banks and financial institutions.

“Vesttoo has also initiated immediate changes in its management, removing some individuals from their positions, also as a result of the findings.

“We have also unfortunately had to let many talented people go from the company, as a result of the damage caused. These steps were taken only to secure the financial viability of the company, and not as a result of the findings.

“We will decisively pursue legal actions against all parties who caused harm to the company and its clients, and will take all necessary steps to recover all and any damages, and we will vigilantly protect our partners, customers and our employees.

“At this stage, we can firmly assure that Vesttoo’s remaining core team of professionals, who are of the highest calibre globally in the fields of insurance, capital markets and technology, are free of any suspicion, and our company continues to operate because of these talented individuals. We thank everyone who continue to support us.

“Vesttoo has tightened its know-your-customer procedures and is adopting stringent legal procedures aimed at increasing the level of corporate governance and business integrity at the company.

“We will demonstrate zero tolerance towards any violation of law and pursue legal actions against any party that caused damage to the company in the most assertive manner.”

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Published August 11, 2023 at 11:58 am (Updated August 13, 2023 at 1:42 pm)

Vesttoo isolates source of its crisis

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