TOKYO (TR) – Prudential Life Insurance on January 16 revealed that over 100 of its present and former staff had engaged in acts of misconduct that resulted within the defrauding of round 500 clients out of greater than 3 billion yen.
The Financial Services Agency, which acquired the report, is taking the matter significantly and plans to completely look at the outcomes of the corporate’s investigation and take strict motion in accordance with the regulation, studies NHK (Jan. 17).
The Japanese subsidiary of the American insurance coverage firm stated that they launched an inside investigation following the arrest of a former worker in June 2024 on suspicion of fraud. After different circumstances of misconduct emerged, together with improper funding solicitations, the corporate launched an inside investigation two months later.
Last yr, police arrested one other former worker for allegedly leaking the non-public data of shoppers. As a consequence, the Financial Services Agency ordered the agency to implement measures to stop a recurrence.
In the investigation, Prudential Life discovered that three former staff embezzled funds by defrauding eight clients out of about 60 million yen in transactions that had been falsely claimed to be for enterprise functions within the firm’s programs and insurance coverage enterprise.
All informed, the agency discovered that 106 present and former staff had engaged in fraudulent actions within the swindling of about 3.1 billion yen from 498 clients.
Prudential Life additionally stated {that a} lack of oversight of administration led to staff benefiting from shut relationships with clients, which led to the misappropriations.
To take accountability for the scandal, Prudential Life CEO and President Kan Mabara will step down on February 1. Hiromitsu Tokumaru, the present president and CEO of Prudential Gibraltar Financial Life Insurance, a bunch firm of Prudential Life, can be his substitute.