Orchard Funding Group PLC - Luton-based finance group specialising in insurance premium finance - Says it has suffered an instance of fraud arising from dealings with a "fraudulent introducer". Orchard says that fraudulent credit agreements were funded by the company as a result, and has made a provision of around GBP500,000 in respect of these agreements. The company warns that its year-end financials will be hit by the provision, which Orchard says represents its total exposure to the fraudulent credit agreements.
Orchard says it is conducting a review of its wider lending book and introducer network in order to ensure that fraud risk does not exist elsewhere in the current loan book. The company is also undertaking a review of its systems and controls to minimise the risk of similar fraud in the future.
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By Hugh Cameron, Alliance News reporter
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Orchard Funding (ORCH)