Israeli FinTech Vesttoo has named Ami Barlev as its Interim CEO and closed a collateralised insurer, amidst its fraud scandal.
Barlev has been tasked with leading the organisation through the turbulent times ahead, as a scandal surrounding a fraudulent letter of credit used as collateral in a transaction with an insurer engulfs the company.
Recently, the institution ousted its now former CEO Yaniv Bertele, co-founder and chief financial engineer Alon Lifshitz, as well as 75% of its staff in wake of the controversy.
Vesttoo has now also revealed the closure of a collateralised insurer in Bermuda, as the organisation’s business focus shifts in light of recent events.
A Vesttoo spokesperson released the following statement regarding the liquidation of Vesttoo’s collateralised insurer in Bermuda: “As part of Vesttoo’s business focus moving forward after the recent events, the company’s management has decided to focus its activities on a limited number of high-quality and large markets.
“As part of this restructuring, Vesttoo is liquidating its collateralised insurer in Bermuda – but continues to operate its branches in New York, London and other territories.
“Vesttoo’s main activity and its core members, which includes an experienced team of 50 people, continue to act vigorously for the benefit of the company’s customers and partners.”
Interim CEO Barlev specialises in crisis management, and managing companies in complex situations, amongst a host of other skillsets that he has honed throughout his extensive experience serving in senior positions such as CEO, director, and chairman of the board across a number of private and publicly-traded Israeli and NASDAQ companies.
Speaking for the first time since his appointment, Vesttoo’s Interim CEO Ami Barlev said: “I would like to thank the Board for their confidence in me during this extremely difficult moment – as well as our investors and clients for their patience.
“I accepted this position because we all strongly believe that Vesttoo’s technological suite and platform remain extremely valuable. The need for both alternative capital in the market and diversified investments is clear and robust.”
“We are working around the clock in order to provide solutions for our customers and partners around the world, and we will work intensively to restore the company’s activities. We believe in the value that Vesttoo can still provide.
“I am confident that by completing the ongoing audit thoroughly and comprehensively we can overcome this significant challenge and get back to work.”
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