Orion reports $60m loss in 'multiple fraud wire transfers'

Houston, Texas – Orion SA has reported that it has been a victim of fraudulent scam activity which resulted in the loss of approximately $60 million.

In an SEC filing, Orion said a “company employee, who is not a named executive was the target of a criminal scheme that resulted in multiple fraudulently induced outbound wire transfers.”

The accounts were “controlled by unknown third parties,” according to the 10 Aug statement by the US carbon black supplier

“As a result of this incident, and if no further recoveries of transferred funds occur," Orion expects to record a one-time pre-tax charge of about $60 million for the fraud.

Continued the statement, the Houston-based supplier does not believe the incident resulted in “any unauthorised access to data or system controlled by the company.”

Orion is now cooperating with law enforcement agencies and intends to pursue recovery of the funds “through all legally available means, including potentially available insurance coverage.”

Furthermore, Orion said it is investigating the incident and its impacts on the company, including its internal controls.