easyhome comments on employee fraud probe

TORONTO -- easyhome Ltd.,  a leaser of brand-name household furnishings, appliances and home electronics announced that it has discovered an employee fraud, in the amount of approximately $3.4 million before taxes, perpetrated against the Company's easyfinancial Services business.

The company said it is taking immediate action to mitigate the financial damage of the fraud and to enhance its ability to prevent and detect such criminal activity in the future.

While not dismissing the fraud's significiance, easyhome said it is not expected to have a material adverse impact on its outlook.

The fraud, which occurred at an easyfinancial kiosk, was detected by the company during a detailed review of its consumer loans receivable portfolio. A resulting internal investigation reporteldy discovered that the manager of an easyfinancial kiosk fraudulently withdrew company funds by processing fictitious loan applications.

"Everyone at easyhome is profoundly disappointed by this event," said David Ingram, president and CEO of easyhome Ltd. "Our preliminary company-wide review has not identified any similar incidents at our other easyfinancial locations. We are confident that this fraud was perpetrated against the Company only and had no negative effect on our customers."

Read easyhome's press release.


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