Exclusive: Claims Australian firms impacted by 'rampant fraud' at German leasing giant Grenke
But the firm has also been criticised, including by South Africa's treasury, for ambushing companies."Viceroy believes Grenke's stock is uninvestable due to blatant accounting fraud, including dozens of undisclosed related party transactions, and the complete lack of internal controls right down to individual due diligence on customers," the report states.which trapped thousands of small businesses around the country in an alleged scam.
"Advertising revenues inevitably never came through and customers were left holding the bag," the report states. "Grenke’s actions suggest it was party to a larger conspiracy to defraud, as it knocked back complaints, denied knowledge of the existence of the scheme , and continued to allow these scammers to write new contracts to the tune of hundreds of millions of dollars."leaving more than 1100 Australian small businesses out of pocket.
Viceroy alleges Grenke has financed dozens of fraudulent schemes across the globe since its inception. Analyst Gabriel Bernarde said the firm had spent many months speaking with victims of frauds and class action groups which have been set up in their wake. Mr Bernarde said in Australia regulators have been focused on the booming buy now, pay later sector, but there were "massive deficits" in oversights of the leasing sector.
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