Swiss firm finds $100M 'criminal scheme' at South Korea unit

Published March 16, 2017

Swiss robotics and engineering company ABB says it has unearthed a "sophisticated criminal scheme" involving alleged embezzlement and misappropriation of funds at its South Korean unit, saying the impact could total $100 million.

The Zurich-based company says in a statement that the treasurer of the South Korean subsidiary, who went missing on Feb. 7, "is suspected of forging documentation and colluding with third parties to steal from the company."

ABB said it launched an investigation in cooperation with South Korean authorities and Interpol, the international police body.

The company said the alleged scheme will have an impact on previously reported 2016 results, saying the current estimate is for a pre-tax charge of about $100 million.

ABB said it has confirmed that the "situation" is limited to South Korea.

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