South Korean Employee Embezzles $100 Million from ABB Robotics Firm

It is amazing to me that one employee would have access to this much money to embezzle:

A major European conglomerate says one of its employees in South Korea has gone missing — along with $100 million.

Power and robotics firm ABB (ABB) announced Wednesday that it has “uncovered a sophisticated criminal scheme” at its South Korean unit. It only noticed the huge sums had been stolen after the employee of the subsidiary disappeared about two weeks ago.

The employee, who ABB has not identified, is suspected of forging documents and working with individuals outside the company to steal the money, according to ABB and South Korean police.

A police spokesman said that the suspect is believed to have fled to Hong Kong and that they are working with Interpol to bring him back to South Korea. Interpol declined to comment on the investigation.

The embezzlement and misappropriation of funds is limited to South Korea, where ABB employs about 800 staff, the company said. Other people could still come under investigation.  [CNN via a reader tip]

You can read more at the link, but the guy behind the theft was the person responsible for ensuring legal and ethical integrity:

The executive, named by a source in South Korea as Oh Myeong-se, was treasurer and one of two integrity ombudsmen for ABB Korea – to whom staff were supposed to report any ethical concerns – according to an online company magazine available on ABB’s Korean website.

He was also the head of compliance at ABB in Korea until 2010, said a source familiar with the investigation, a role that carries responsibility for maintaining legal and ethical integrity.

The executive is suspected of forging documents and colluding with third parties to steal funds, ABB said, estimating it would take a pre-tax charge of about $100 million for the affair, which analysts said raised concerns about its corporate oversight. [Reuters]

It will be interesting to see who else is tied to this crime because I would be surprised if this guy was able to embezzle and move this much money all on his own.