Webster Financial Corp. (WBS) said that its internal controls had detected and halted an elaborate embezzlement scheme at a subcontractor that provides bulk cash processing on behalf of a major vendor of Webster.
The company said that the subcontractor had made partial restitution. In addition, the subcontractor maintains an insurance policy in an amount in excess of the maximum potential exposure of $11 million with Webster identified as a loss payee. No customer accounts were affected by the scheme.
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