Ferrero Rocher Cleared In Hazelnut Fraud
By: Ainsley Brown
The world´s largest purchaser of hazelnuts and the maker of a very tasty treat, Ferrero Rocher, has been cleared in the English courts of a £20 million fraud.
The suit was brought against the Italian chocolate company by the Bank of Tokyo Mitsubishi and others alleging that deceit, negligent misrepresentation and conspiracy for a deal involving the purchase of hazelnuts. The allegations were that Ferrero Rocher participated in a fraud carried out by a Turkish company, Baskan Gida, between 2001-2002. Baskan Gida borrowed money from the banks´ London branch in order to purchase hazelnuts which it would in turn re-sell to Ferrero Rocher. However, it convinced the bank, using forged documents that Ferrero Rocher would repay it directly.
Well as you can guess no such payment was forthcoming. And the bank brought suit convinced that it was defrauded in a plot by both Ferrero Rocher and Baskan Gida. No such conspiracy existed.
The cost of defending this action was not cheap. As the Times reports ¨millions of pound were spent by each side.¨ Was this money well spent?
While there could be a very persuasive argument brought that this suit should have never been brought against Ferrero Rocher in the first place but since it was brought it had to fiercely defend against it. Fraud after all is an allegation against reputation – for a company commercial reputation is every thing.
