widgeon Posted August 19, 2005 Report Share Posted August 19, 2005 http://www.shephard.co.uk/rotorhub/Default...5c-326889835c26 Vector Aerospace settles fidelity bond claim TORONTO, Aug. 17 - Vector Aerospace Corporation (TSX: RNO) today announced it has settled a claim it had made of its fidelity bond insurers relating to a 2004 employee fraud. The Corporation had reported earlier an employee fraud, committed during 2004, amounting to approximately $4,600,000. The fidelity bond insurer lead the Corporation to believe full recovery of the claim would be paid in February, 2004 but then reversed its position and denied coverage. As Canadian accounting standards require a high level of certainty in recording a contingent recovery, the full amount of the fraud loss was recorded as an unusual expense in the 2004 consolidated financial statements. The Corporation vigorously pursued the full recovery of this claim against the Fidelity bond insurer. To avoid an ongoing dispute and related litigation on the issue, the Corporation agreed to discount its full claim by a small percentage, and settled its claim for $4,200,000. The latter amount will be recorded as income in the Corporation's third quarter. Vector Aerospace is an independent provider of aviation repair and overhaul services. Through facilities in Canada, the United States and the United Kingdom it provides services to commercial and military customers for various types of gas turbine engines, components and helicopter airframes. It also provides information technology solutions to an international customer base. Principal operations include Atlantic Turbines, Sigma Aerospace, ACROHELIPRO Global Services and Pathix. The Company has approximately 1,100 employees. Anyone know what happened ?, heard a rumor it was a Nigerian scam of some sort. Quote Link to comment Share on other sites More sharing options...
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