Says Employees Inflated Costs And Skimmed The Profits

DJI has released additional details about a fraud scheme that reportedly cost the company about $147 million.

Gizmodo reports that DJI released a statement Monday which said:

"During a recent investigation, DJI itself found some employees inflated the cost of parts and materials for certain products for personal financial gain, which DJI estimates could have cost the company up to RMB 1 billion (around $147 million).

"DJI took swift action to address this issue, dismissed a number of employees who violated company policies, and contacted law enforcement officials."

DJI did not say how many employees were involved in the scheme, but Reuters reports that, according to an unverified document, 45 people were terminated for their roles in the plot. That number is somewhat contradicted by the Nikkei Asian Review, which reports that 29 have been fired and 16 more are being considered for formal legal action.

Most of the employees involved worked in the R&D and procurement divisions of the company. An internal investigation found that the prices of parts had been inflated by an average of 20 percent.

Nikkei reports that such vendor misconduct has become "endemic" for industry in China, with several companies getting caught up in fraud schemes.

(Image from file)

FMI: Gizmodo, Nikkei