Euler Hermes claims it was a victim of a fraud
The world’s largest credit insurance company, Euler Hermes, has launched a legal battle after claiming to have become the victim of a fraud.
Euler Hermes is suing London-based Schwaiger & Graaf, saying the fledging company has associated itself with Euler Hermes and used the credit insurer house’s name.
Now the French, Argentine and UK branches of Euler Hermes are seeking damages and the costs of investigating the smaller company’s “dishonest conduct”, according to a High Court writ.
Schwaiger & Graaf offers loans purportedly guaranteed by Euler Hermes, although Euler Hermes is not a party to the guarantees, the writ claims.
It is accused of fraudulently receiving payments for alleged guarantee costs without making loans. Euler Hermes argues that its goodwill has been damaged and risks future damage.
Euler Hermes, owned by German insurance group AGF-Allianz, has offices in more than 50 countries, employing 6,200 staff. It issued a profits warning in December.
Schwaiger & Graaf could not be reached for comment.