An East Coast bank has delayed the release of its financial statements because of a discovery that two former mortgage employees embezzled over $2 million.
C&F Financial Corp. announced today the delay of the release of earnings data due to findings that two former mortgage employees may have embezzled $2.2 million.
The West Point, Va.-based banker today announced it recently uncovered evidence that suggests the two ex-employees of C&F Mortgage Corp. jointly embezzled funds in that amount from the mortgage subsidiary.
Management, general counsel, external and internal auditors and outside counsel are undertaking a thorough investigation of the matter, according to the announcement.
C&F said it believes there is sufficient coverage under its insurance policy to recoup potential losses and that it will record a charge to income for the $75,000 deductible in its second quarter financial statements, which it expects to release within the next two weeks.