OW Bunker's Dynamic Oil Trading hit by $125m fraud

In a statement OW Bunker said senior management had been informed on Wednesday about the fraud committed by senior employees of Dynamic.

“The extent of the fraud is not yet clear, but preliminary findings suggest a potential loss of around $125m,” the company said.

OW Bunker declares bankruptcy in wake of fraud - read breaking story here

Dynamic Oil Trading was founded in October 2012 and helmed by ceo Lars Moller, previously head of OW Bunker in Singapore.

Separately a review of OW Bunker’s risk management exposure had found significant losses in addition to the $24.5m loss announced on 23 October with the mark to market loss standing at $150m.

The company has fired head of risk management and evp Jane Dahl Christensen.

OW Bunker said that the events uncovered impact its operations and credit facilities. “OW Bunker is currently in discussions with the syndicate banks,” it said. However, it was unable to reach agreement with its banks overnight and filed for in-court restructuring of two major subsidairies on Thursday.

OW Bunker listed on NASDAQ OMX Nordic in March this year. According to Danish newspaper Borsen it is Denmark's third largest company by revenue.