$2.8m fraud will hit profit: Turners

Turners Auctions yesterday revealed that a $2.8 million fraud against the company was likely to adversely affect the company's profit this year by $1.2 million.

In May the company said it had uncovered a potential fraud of at least $1 million by a former employee which was being investigated by the Serious Fraud Office.

Chief executive Graham Roberts said the fraud spanned a period from 1999 to last year. The employee implicated left Turners in May last year.

Turners' half year financial results for this year will be released in August.

Roberts said: "We are devastated at the extent of this alleged fraud. We want to reassure our shareholders that we are doing everything within our power to recover the funds.

"As a result of this alleged fraud ... the company is undertaking an extensive review of its internal systems and processes."

Shares in the company closed down 6c at $119.

- NZPA