Deloitte Romania will audit local insurer Carpatica Asig’s financial results for 2015.

The insurance company is now managed by the Policyholder Guarantee Fund under a resolution mechanism decided by the Financial Supervisory Authority (ASF). The resolution allows the authority to step over the shareholders and find an investor to take over the company.

Carpatica Asig’s management was suspended last week due to an organized crime file.

The company’s owner, local investor Ilie Carabulea, and the board president Angela Toncescu, a former president of the Insurance Supervisory Commission (CSA), were arrested last week for setting up an organized crime group. They were accused of having forged the company’s financial results.

The prosecutors’ investigation targets the period between the end of 2014 and early 2015 when Carpatica Asig already had a bad financial situation and tried to conceal it by forging official financial data.

editor@romania-insider.com