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 Engineer 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.
August 1st – Vesttoo to lay off large portion of global workforce.
July 20th – Vesttoo: Collateral damage.