Vanishing Stock

Claims Examples of Crime

Vanishing Stock

The wholesale outlet of a sound equipment company was surprised, when calling for stock items from the warehouse, to learn that there were no such items, even though records showed that there should have been. A senior buyer had been running a scam with an outside conspirator, involving fictitious orders, followed by fictitious rejections and manipulation of the invoicing system. The losses totalled in excess of £750,000 and were paid under the policy.