AmTrust dismisses claims of FBI probe as share price plummets
New York-based property/casualty insurer AmTrust Financial Services has denied it was the subject of an investigation by the FBI in 2014 with respect to its accounting practices initiated by complaints made by short sellers, as alleged in a Wall Street Journal (WSJ) article dated April 11.
The share price of AmTrust plummeted as the market reacted to the report that details a FBI probe into the company.
The US carrier has responded in a press release stating that "AmTrust is not aware of any such investigation, nor for that matter, has it ever been contacted by the FBI with respect to such an investigation. Further, AmTrust is not aware of any special examination by the New York Department of Financial Services, other than examinations conducted in connection with AmTrust's 2014 Tower transaction, which the department approved."
It added: "AmTrust has no direct knowledge of any of the individuals, named or unnamed, referenced in the article and is certainly not aware that they have any credibility with respect to their understanding of AmTrust or its regulators.
"Immediately following AmTrust's filing of its 2016 Form 10-K, and the unqualified audit opinion issued by KPMG, the Wall Street Journal contacted AmTrust concerning a possible article in which it seemed that AmTrust would be a part.
"We have been as responsive as possible to the Wall Street Journal during this period. Many of the questions from the Wall Street Journal related to the disproved short seller themes about AmTrust that have been used unsuccessfully by shorts and their confederates for the past several years. There is nothing in today’s Wall Street Journal article in terms of the company’s operations or financial results that is different from these old, recycled short seller themes."
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