Clausen Miller Completes Subrogation Recovery Of Embezzled Funds In China
A multi-national electronics company with headquarters in the Midwest and facilities throughout the world suffered a loss when an employee at their Shanghai facility was caught embezzling from the office. A U.S. based insurer stepped in to cover the claim, and then looked to pursue a recovery.
Even before the loss was noticed, the funds had disappeared into real estate and exotic sports cars. Therefore, the problem of recovery became one of working with the local legal system in its prosecution of those who benefited from the theft and turning that prosecution into a reimbursement of insurance proceeds for the insurer. The local legal system was up to the task and the prosecution was successful. In China, even where a recovery is possible, often the difficulty comes in repatriating the funds. Clausen Miller’s California team stepped in and coordinated with local counsel and the State Administration of Foreign Exchange to bring the recovery to the United States following the auction of the assets.